Some Older Americans Are Getting A $90 Medicare Surprise

Some older Americans could get a $90 surprise in their bank accounts this week and not understand why.

Some of the $90 deposits by the Social Security Administration have already hit older Americans’ bank accounts under an announcement by the Trump administration that it would send checks to 20 million Medicare enrollees to lower health care costs.

Not every Medicare beneficiary is eligible, though. Read the rest of the story for more details.

Who Is Eligible?

The White House said Medicare Part B enrollees can expect to receive a one-time payment in October, either through direct deposit or check. The program covers doctor visits, laboratory tests, and ambulance services, with premiums beginning at approximately $200, fluctuating based on individual income level.

People enrolled in Medicare Advantage, a private alternative to standard Medicare, won’t receive the payment. That eliminates more than half of Medicare beneficiaries, according to data from KFF, a nonprofit focusing on health care research.

Who Funds It?

The White House said the $90 payments for seniors will come from the Medicare Improvement Fund, established by Congress in 2008 as flexible funding to improve program operations and payments to health care providers.

Previous administrations have not used the Medicare Improvement Fund in this way, although Congress has periodically taken out money from the fund to pay for other priorities, Larry Levitt, KFF's executive vice president for health policy, told The Associated Press. For example, $20.74 billion was used for the creation of the Affordable Care Act in 2010.

“The Medicare Improvement Fund language is quite broad and gives substantial discretion to the administration,” Levitt said.

The payments are expected to cost about $1.87 billion. The Centers for Medicare and Medicaid Services says 20.8 million Medicare beneficiaries qualify for the $90 rebate, nearly exhausting the roughly $2 billion currently available in the Medicare Improvement Fund.

Why Now?

President Donald Trump’s announcement of the $90 payments late Friday came weeks ahead of the Nov. 3 midterm elections. Despite his claims of a booming economy, polls show voters blame Trump for high gas and grocery prices, with only 17 percent approving of his handling of inflation.

The recent announcement of $90 payments follows a prior rollout last month, in which 1 million individuals were slated to receive rebate checks of $500 for Affordable Care Act premiums. Trump has also promised on the campaign trail to send every American adult $5,000 if Republicans retain control of the House and Senate in the midterm elections.

That pledge — which would require approval from Congress — would likely cost more than $1 trillion, adding to the deficit and worsening inflation.

The Associated Press contributed to this report.