Nearly 100 retirees in Nassau County, New York, are accused of defrauding taxpayers of more than $1.6 million by collecting duplicate Medicare Part B reimbursements for over 20 years, according to an audit released June 15 by County Comptroller Elaine Phillips.
An audit of health benefits records for 10,240 living Nassau retirees flagged 99 individuals for suspicious activity. Of these, 94 were confirmed to have improperly received payments. These retirees allegedly collected Medicare Part B reimbursements from Nassau County for spouses who were also retired public workers, while those same spouses simultaneously collected a payment for the same benefit from their own former public employers.
Nassau County is legally required by state law and union contracts to reimburse eligible retirees and their spouses for Medicare Part B premiums, which cover doctor visits and outpatient care. The county issues these reimbursements twice a year, with the condition that retirees can only receive payment from one source.
Phillips' office initiated a probe in October after discovering duplicate payments that potentially dated back to 2002. The audit states that no system was in place to verify that retirees were adhering to the single-source reimbursement rule.
As of June 1, less than $260,000 of the $1.6 million has been recovered, leaving $1.36 million outstanding. Following the comptroller's office sending demand letters for repayment, 39 retirees have acknowledged the issue. The audit indicates that 55 individuals have not yet responded to the repayment demands. No criminal charges have been referred to the Nassau County District Attorney's office at this time.
Comptroller Phillips stated that preventing improper benefit duplication can be complex due to the coordination required across multiple plans, carriers, and eligibility systems. She has pledged to enhance the county's verification processes and oversight for these reimbursements.