Article / Employee Benefits
Employers Confuse CMS Data Request for Scam

Employers like Lockton client IEA Renewable Energy Inc. have been confused by recent letters from the Centers for Medicare and Medicaid Services (CMS), IRS and Social Security Administration.

In short, the letters aim to inform employers that one or more of their employee’s ID numbers have been found on the CMS database for taking Medicare or Medicaid benefits. If they are covered by a company health plan, this is illegal.

In an article for Employee Benefit News, Lockton Benefit Group’s Ed Fensholt, Senior Vice President and Director of Compliance Services, responds to the confusion facing employers.

“They know that this is a notice from the government that they will have to do some work to pull together. They want to know ‘Do I need to reply?’” says Fensholt, estimating that “several dozen” of his employer clients have received such letters since April.

In the case of IEA Renewable Energy Inc., Lockton helped draft a letter to CMS to inform them of this situation and ask for information on how to report on these workers.

Learn more about how (and if) employers should respond to these data requests in the Employee Benefit News article or in Benefits Insight & Guidance, published by Fensholt in July.

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