When Council Bluffs retiree Geri Frederiksen noticed her Medicare supplemental premium jump from $468.83 to $726.03, she feared a costly mistake. After contacting the local news station, Mutual of Omaha confirmed a billing error that affected 92 Iowa policyholders.
Insurer acknowledges system issue
In an email to KMTV, Mutual of Omaha said it discovered an isolated problem with one of its computer systems that incorrectly adjusted premiums for a small group of customers. The company apologized, stating, “We sincerely apologize for the error and the concern it caused.” It added that the issue was unrelated to health claims or broader cost trends in the industry.
Frederiksen received a follow‑up call on Friday, two days after the story aired, informing her that the premium should have remained at $468.83. The corrected amount is now $515 per month, an increase of $46 rather than the $257 rise originally reported.
Impact on the affected retirees
Frederiksen expressed relief, saying, “Oh, my goodness. The relief was such a weight lifted. Yes, I was thrilled.” She noted that her chronic lung condition makes it difficult to find alternative supplemental plans, as many insurers decline coverage for her condition.
While some retirees consider switching to a Medicare Advantage plan, Frederiksen said she had previously been advised that it might not be the best fit for her health needs. For now, she will remain with her current Plan F supplemental policy, grateful for the swift correction.
What Medicare Supplement plans are
Plan F is a standardized Medicare Supplement (Medigap) plan that covers most out‑of‑pocket costs. Under federal law, new Medicare beneficiaries have not been able to enroll in Plan F since 2020, but existing holders like Frederiksen can keep their coverage.
Mutual of Omaha serves roughly 1.3 million Medicare Supplement customers nationwide, including about 18,000 in Iowa. The insurer emphasized that the error was limited to the 92 affected individuals and that no further action is required from other policyholders.
Open enrollment and resources
Open enrollment for Medicare Advantage and Medicare Supplement plans runs through December 7. The Area Agency on Aging encourages anyone with questions to contact a Health Insurance Information Program counselor for personalized guidance.
Frederiksen thanked both the insurer and Channel 3 for their role in bringing the issue to light, noting that media coverage was crucial in prompting the correction.
What consumers can do
Retirees who suspect billing errors should review their annual statements carefully and reach out to their insurer promptly. The Centers for Medicare & Medicaid Services (CMS) also provides resources for filing complaints and seeking assistance.
Mutual of Omaha said it is reviewing its systems to prevent similar problems in the future and will continue to work directly with the affected customers to issue refunds for any overpayments.
Original reporting: KMTV 3 News Now (Scripps) – local — read the source article.
