Medicare Premiums when collecting Social Security benefits

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Good Listener
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Medicare Premiums when collecting Social Security benefits

Post by Good Listener » Wed Oct 09, 2019 8:55 am

People here have helped me greatly in understanding the medicare premium, EZ pay, etc. I know that when you begin collecting Social Security, your Medicare premiums will be deducted from the benefit payment. I am confused about a few things because I know that the social security benefit payment is made in arrears (the following month) while the Medicare premium is paid the month before. I'm making up a cheat sheet for a few years from now so would appreciate an answer to my question below, which I have probably stated in in far more words than necessary

I currently am on Medicare and have my premiums paid by EZ pay as I have not begun collecting Social Security benefits yet. EZ pay is the direct debit deduction from my checking account and actually comes out the 20th of the month before the premium which is being paid. I will turn 70 in November of 2022. I know that to get maximum benefits I can sign up in August of 2022, three months earlier, and then I would begin collecting social security for November 2022. Medicare payments will then be deducted from my social security benefits and EZ pay will stop. But since the payment for month X is paid in month X+1, the first payment would be received in the following month of December 2022. My question is whether since my first November 2022 Social Security payment will not be received until December, will that payment payment count for the November Medicare premium? I ask this especially because EZ pay comes out the month before the Medicare premium is due. And my second question is have people experience is successful discontinuation of EZ pay without double payments.?

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AAA
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Re: Medicare Premiums when collecting Social Security benefits

Post by AAA » Wed Oct 09, 2019 9:55 am

I didn't follow all of the detail in your post, but will relate what happened to us which I think is relevant. Spouse was going to start collecting Social Security at age 66. She had been paying the Medicare premium quarterly as each bill was received. The last bill covered the month before she was to start actually collecting Soc. Sec., that month and the following month. We wondered about how the Medicare premiums would be handled. What happened is that a refund for the second and third month was automatically deposited into our bank account, without us having to do anything. (They mistakenly considered it a Soc. Sec. payment and withheld taxes, something we're still trying to correct).

Also I believe your first Soc. Sec. check will actually come in December.
Last edited by AAA on Thu Oct 10, 2019 9:17 am, edited 1 time in total.

TBillT
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Re: Medicare Premiums when collecting Social Security benefits

Post by TBillT » Wed Oct 09, 2019 1:01 pm

Long story short, you may have to pay the Medicare premium even though your SS will start soon.
A few months later SS will send you a very nice looking check from Uncle Sam to reimburse any over payment. Don't ask me what month that is for, I give up. We did this 2x this year and the most recent reimburse check came relatively fast.

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Stinky
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Re: Medicare Premiums when collecting Social Security benefits

Post by Stinky » Wed Oct 09, 2019 1:44 pm

Longer story even shorter -

Pay what you are billed. Uncle Sam will make it right with you eventually.
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bayview
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Re: Medicare Premiums when collecting Social Security benefits

Post by bayview » Wed Oct 09, 2019 9:16 pm

After a lot of research, I decided to start taking SS when I turned 65 (tomorrow!) So MC-B premiums start at the same time as SS payments.

I received a somewhat snippy letter yesterday stating that, since my MC-B payment was “overdue”, my first SS payment next month (in arrears) would be lower by the amount of the MC-B premium, and then subsequently would be at the actual SS value.

I was a bit amused at the continuing references to “overdue” with the veiled accusation that I had failed to pay timely, but I do wonder about how this would be interpreted by others in my situation who were not used to dealing with mail from the gummint.
The continuous execution of a sound strategy gives you the benefit of the strategy. That's what it's all about. --Rick Ferri

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Eagle33
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Re: Medicare Premiums when collecting Social Security benefits

Post by Eagle33 » Wed Oct 09, 2019 9:40 pm

bayview wrote:
Wed Oct 09, 2019 9:16 pm
After a lot of research, I decided to start taking SS when I turned 65 (tomorrow!) So MC-B premiums start at the same time as SS payments.

I received a somewhat snippy letter yesterday stating that, since my MC-B payment was “overdue”, my first SS payment next month (in arrears) would be lower by the amount of the MC-B premium, and then subsequently would be at the actual SS value.

I was a bit amused at the continuing references to “overdue” with the veiled accusation that I had failed to pay timely, but I do wonder about how this would be interpreted by others in my situation who were not used to dealing with mail from the gummint.
Medicare expected the premium paid in month of coverage (October), not a month later (Nov) when you receive the October SS check.
Rocket science is not “rocket science” to a rocket scientist, just as personal finance is not “rocket science” to a Boglehead.

Loon11
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Re: Medicare Premiums when collecting Social Security benefits

Post by Loon11 » Wed Oct 09, 2019 9:49 pm

similar situation here. I pay quarterly premiums for medicare B and will start taking my suspended social security in March 2020 (first check will come mid April according to them) However, my quarterly premium will pay for Feb,Mar and April. I did not want to rely on them to get my refund and amount straightened out. I call medicare and was told to pay only one month of the Feb. quarterly premium which will pay to March. the customer rep said Medicare would not cancel my coverage as there is a 90 day grace period. By paying only Feb portion of the premium, the social security will kick in and take the rest out of the pay.

At least that how I hope it happens. I'll likely call them again in January to make sure this really will work.

bayview
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Re: Medicare Premiums when collecting Social Security benefits

Post by bayview » Thu Oct 10, 2019 9:33 pm

Eagle33 wrote:
Wed Oct 09, 2019 9:40 pm
bayview wrote:
Wed Oct 09, 2019 9:16 pm
After a lot of research, I decided to start taking SS when I turned 65 (tomorrow!) So MC-B premiums start at the same time as SS payments.

I received a somewhat snippy letter yesterday stating that, since my MC-B payment was “overdue”, my first SS payment next month (in arrears) would be lower by the amount of the MC-B premium, and then subsequently would be at the actual SS value.

I was a bit amused at the continuing references to “overdue” with the veiled accusation that I had failed to pay timely, but I do wonder about how this would be interpreted by others in my situation who were not used to dealing with mail from the gummint.
Medicare expected the premium paid in month of coverage (October), not a month later (Nov) when you receive the October SS check.
Right, but since I only received my notice of Medicare approval about three weeks ago, and since they stated that it would be paid for out of my SS check (did not solicit or list ways to pay sooner), I thought that was a bit, as I wrote, snippy.

Note: I find this amusing. I’m not perturbed at all. But I do see how it might freak out someone not used to form letters from the gummint.
The continuous execution of a sound strategy gives you the benefit of the strategy. That's what it's all about. --Rick Ferri

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