The Centers for Medicare and Medicaid Services (CMS) has started issuing new Medicare Beneficiary Identifiers (MBIs) to about 1.2 million beneficiaries. This update addresses specific cases where MBIs were compromised or contained errors, posing risks to privacy and smooth claims processing. Impacted beneficiaries will receive a letter informing them of the change, along with a new Medicare ID card displaying their updated MBI.
Why Only 1.2 Million Beneficiaries?
CMS identified that only a small group of Medicare beneficiaries had MBIs that needed replacement due to security issues, reported problems, or administrative updates. Instead of issuing new MBIs to everyone, this initiative focuses on the 1.2 million individuals most impacted.
What This Means for Brokers
As a broker, if your client recently received a new MBI, make sure to use it on their enrollment form. Using the current MBI ensures a seamless enrollment process and prevents potential delays. Here’s what you should keep in mind:
Key Steps to Take:
- Ask About New MBIs
Before starting the enrollment process, ask your clients if they have received a new MBI or a letter from CMS about this update. If they have, let them know you’ll need the new MBI to complete their enrollment. - Using an Old MBI on Enrollment Forms
If you submit an enrollment form with an outdated MBI, carriers will attempt to validate it through Medicare. If the validation fails, the application will be placed in “Request for Information” (RFI) status until the updated MBI is received. Both the enrollee and the agent will be notified, with a request to provide the new MBI.
If the new MBI isn’t obtained by the RFI respond-by-date, the application could be denied.
How You Can Assist Clients:
- Encourage Prompt Response to Carrier Communications
If your client receives a letter from their carrier, advise them to respond promptly by contacting Member Services.
You can also assist by reaching out to the carrier’s Broker Services Department directly on their behalf, using the member’s name, date of birth, and new MBI as required.
Q&A for Further Clarity
Can Carriers Identify New MBIs Automatically?
- For new enrollees: No. The updated MBI must be provided on the enrollment form or during the RFI process.
- For existing members switching plans: Yes, CMS will share the updated MBI with carriers, so no action is required from these members.
Are All Medicare Beneficiaries Receiving New MBIs?
No. Only the 1.2 million beneficiaries affected by specific MBI issues, such as compromised identifiers, will receive updated MBIs.
When Will the New MBIs Take Effect?
Effective dates will vary, but clients should start using their new MBI as soon as they receive their updated card.
What Should Beneficiaries Do With Their Old Medicare ID Cards?
The notification letter includes a specific effective date. After this date, beneficiaries should destroy their old cards and inform healthcare providers of their new MBI.
Final Thoughts
Keeping your clients informed of this CMS update and ensuring their enrollment forms are up-to-date is crucial for helping them maintain smooth access to Medicare services. If you have any questions or need further assistance, reach out to your carrier’s support resources or contact the team at Trusted American Insurance Agency.
By Rosamaria Marrujo, CEO of Trusted American Insurance Agency, 2024-2025 CAHIP President