Jack's Blog on Medicare Plan Choices

When a person enrolled in Medicare, Medicare Supplement (Medigap), or a Medicare drug plan (Part D) passes away, here’s what typically happens to the payments:

1. Medicare Premiums

• Automatic Termination: Medicare benefits terminate upon the death of the beneficiary. The Social Security Administration (SSA) or the Centers for Medicare & Medicaid Services (CMS) will be notified, often by the funeral home or family.
• Premiums Paid via Social Security: If premiums for Medicare Part B or Part D were deducted from Social Security benefits, the deductions stop automatically once the death is reported.
• Direct Payments: If premiums were paid directly (e.g., monthly by check or bank draft), the surviving family should notify the insurer or CMS to ensure no further payments are withdrawn.

2. Medigap (Medicare Supplement) Plans

• Policy Termination: Medigap policies terminate upon the beneficiary’s death. The family or estate representative should contact the insurance company to provide proof of death.
• Refund of Prepaid Premiums: If the policyholder had prepaid premiums for future months, the insurer may issue a refund to the estate.

3. Medicare Prescription Drug Plans (Part D)

• Policy Termination: Coverage stops at the end of the month of the beneficiary’s death.
• Refunds for Overpayments: If there were overpayments or future premiums deducted, the plan may issue a refund to the beneficiary’s estate.

4. Reimbursement of Claims

• Any Medicare or Medigap claims filed after the date of death will be denied. Payments already made for services rendered before death are unaffected.

5. Steps for Families

• Notify Medicare: Call the Social Security Administration at 1-800-772-1213 to report the death (if not already done by the funeral home).
• Notify Private Insurers: For Medigap or Part D, contact the insurance company directly to close the accounts.
• Bank Account Adjustments: Check for any automatic premium withdrawals or refunds owed to the estate and handle appropriately.

Here is my disclaimer.  I gather most of my information from Medicare.gov and CMS.gov and to the best of my knowledge, it is accurate.  Please use this information as a guideline.