For Immediate Release
October 11, 2024
Washington, DC – Today the Center for Medicare Advocacy supported a letter sent from Rep. Lloyd Doggett (Texas) to the White House urging clarification that Medicare Advantage “Flex Cards” must be excluded from the calculation of income when determining eligibility for government benefits programs.
Some Medicare Advantage (MA) plans offer Flex Cards, which are similar to preloaded debit cards. Rep. Doggett’s letter comes amid recent reports that some public benefit administrators are counting the dollar amounts on Flex Cards in the income and asset calculations for benefits. Some of the public benefits affected include federal rental assistance, SNAP food assistance, PACE and Supplemental Security Income (SSI).
The letter stated, “Consumers should not be unfairly penalized due to a nominal benefit that cannot replace the services and assistance they receive from public programs. With the 2025 Medicare Open Enrollment Period beginning on October 15, it is imperative that this guidance be issued swiftly to protect consumers from unjustly being denied federal assistance.”
The Center for Medicare Advocacy has been monitoring this situation after learning that some Connecticut-based low-income housing complexes are citing HUD policy to require rent increases proportional to the Flex Card amounts. The amounts on the card are being counted toward income whether the beneficiary has actually used the card or not.
Many private MA plans heavily promote Flex Cards in their advertisements, though the amounts on the cards, permitted uses, and other details vary by plan. Of course, these cards can be appealing to beneficiaries who struggle to cover their out-of-pocket costs each month.
“With Open Enrollment fast approaching, we are troubled that low-income beneficiaries might unknowingly jeopardize their eligibility for essential benefits because their plan offers a card that they might not even use,” Center for Medicare Advocacy Managing Policy Attorney Kata Kertesz said. The Center supports this Congressional effort to encourage urgent clarification on this issue.
Contact:
Matt Shepard, Communications Director
MShepard@MedicareAdvocacy.org
202-293-5760
###
About the Center for Medicare Advocacy: The Center for Medicare Advocacy (MedicareAdvocacy.org) is a national, nonprofit, non-partisan law organization that works to advance access to comprehensive Medicare coverage, health equity, and quality health care for older people and people with disabilities through legal analysis, education, and advocacy.