The Center for Medicare Advocacy has recently learned of Connecticut residents whose subsidized rents will increase due to money that is pre-loaded onto “flex cards” they receive from a private Medicare Advantage (MA) plan. The individuals are dually eligible for Medicare and Medicaid, and they also receive federal assistance for housing through the Department of Housing and Urban Development (HUD). They learned that their rent will increase because the money the MA plan provides through the card is being counted as income. This MA plan allows beneficiaries to use the flex card, similar to a debit card, to purchase food, over-the-counter medical expenses and to pay for certain utilities.
While practices appear to vary, some Connecticut-based low-income housing complexes are citing HUD policy to require rent increases proportional to the flex card amounts. This is apparently because the cards can be used to pay for certain utilities, such as electric, internet, and cable bills, and are not limited to food and over-the-counter medical expenses. Because the cards are preloaded, like a preloaded debit card, the amounts on the card are counted toward income whether the beneficiary has actually used the card or not.
Many private MA plans heavily promote these flex cards in their advertisements, though the amount on the card, permitted uses for the card, 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.
The Center is very concerned that low-income beneficiaries who are eligible for housing benefits may unknowingly risk diminishing their critical benefits because they enroll in a plan that offers a flex card. We have heard from other organizations that other public benefits may be jeopardized by these flex cards as well.
We seek to raise awareness of this potential risk, so that beneficiaries and advocates consider this possibility when making enrollment decisions during the upcoming Open Enrollment Period. We also ask advocates and beneficiaries who have experienced this issue to contact us at communications@medicareadvocacy.org to share their story so we can develop a better sense of how widespread this issue is geographically and across which federal programs. The Center will continue to monitor this issue and share additional updates.
October 3, 2024 – Kata Kertesz