Medicare Part C / SS statement has Part B premium deduction

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egghead
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Medicare Part C / SS statement has Part B premium deduction

Post by egghead »

I have a question regarding my Dad’s Medicare plan and Social Security statement.

My dad is on an AARP United Healthcare Medicare Advantage Part C plan (HMO), in which the Monthly Premium = $0 (their website says because they are one of the largest providers of Medicare coverage, they can offer more benefits than Original Medicare for a $0 monthly premium).
However, my Dad’s 2019 SSA-1099 Social Security Benefits Statement includes a deduction of $1,626 for Medicare Part B.

Since he is on Medicare Advantage (Part C), I’m trying to figure out which is true:
1. Social Security is incorrectly reducing his SS payments for a Medicare Part B deduction (since he’s on Part C, there should not be a Part B cost), or
2. Social Security is correctly including a Part B deduction, and the Original Medicare Part A & B funds are used to cover United Healthcare’s Part C costs.

I have yet to file for Medicare myself, so I’m ignorant on how this should work.
Any thoughts?
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FIREchief
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Re: Medicare Part C / SS statement has Part B premium deduction

Post by FIREchief »

This is likely correct. I’m not on Medicare but believe that part C premiums are in addition to part B premiums.
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cheese_breath
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Re: Medicare Part C / SS statement has Part B premium deduction

Post by cheese_breath »

Check the link below. .... Some plans pay all or part of your Part B premium. That means some plans don't.

https://www.medicare.gov/your-medicare- ... tage-plans
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Artful Dodger
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Re: Medicare Part C / SS statement has Part B premium deduction

Post by Artful Dodger »

My experience is that very few Medicare Advantage (Medicare C) plans pay the Part B premium. We have a United Healthcare Medicare advantage program through my wife's previous employer, and we are responsible for paying our Part B premiums, and have a premium for the UHC plan as well. Ours is a PPO Medicare Advantage plan that allows us to go to any provider and the premium reflects that.
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cheese_breath
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Re: Medicare Part C / SS statement has Part B premium deduction

Post by cheese_breath »

Artful Dodger wrote: Mon Sep 14, 2020 3:59 pm My experience is that very few Medicare Advantage (Medicare C) plans pay the Part B premium....
And my guess is probability of the ones without any part C premium paying it is somewhere between none and zero.
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jeff1949
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Re: Medicare Part C / SS statement has Part B premium deduction

Post by jeff1949 »

Your #2 is correct. The monthly deduction for Part B goes to cover the costs born by United Health.
orlandoman
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Re: Medicare Part C / SS statement has Part B premium deduction

Post by orlandoman »

Your #2 is correct. The monthly deduction for Part B goes to Medicare, then:

Medicare pays a monthly capitation rate for each enrollment in a Medicare Advantage plan to the insurance company, to cover that person's healthcare costs (estimate of average which traditional medicare would have paid plus admin costs). The 2020 county-level averages range from $755 per month, in Presidio, Texas, up to $1,609, in Nome, Alaska. The 2020 state-level averages ranged from $883 per month, in Hawaii, up to $1,168, in Alaska. So, keeping costs down is advantageous the the insurance company. The ins company is only allowed to earn a certain percentage of profit and is a complicated formula based on the capitation rate that they receive. That is why many if not all MA companies offer pro-active heath services to their members, the healthier their members are, the lower their costs are.
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Topic Author
egghead
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Re: Medicare Part C / SS statement has Part B premium deduction

Post by egghead »

Thanks for the responses, much appreciated!
Slowly beginning to understand Medicare better...
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GerryL
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Re: Medicare Part C / SS statement has Part B premium deduction

Post by GerryL »

egghead wrote: Mon Sep 14, 2020 7:27 pm Thanks for the responses, much appreciated!
Slowly beginning to understand Medicare better...
Might be worth your while to get a copy of Medicare for Dummies. Great guide for understanding the complexities of this complicated program. What I like most about it is that it doesn't just reprint the text you can find on the official Medicare site. It explains it in different and more understandable language.
Topic Author
egghead
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Re: Medicare Part C / SS statement has Part B premium deduction

Post by egghead »

GerryL wrote: Mon Sep 14, 2020 8:20 pm
egghead wrote: Mon Sep 14, 2020 7:27 pm Thanks for the responses, much appreciated!
Slowly beginning to understand Medicare better...
Might be worth your while to get a copy of Medicare for Dummies. Great guide for understanding the complexities of this complicated program. What I like most about it is that it doesn't just reprint the text you can find on the official Medicare site. It explains it in different and more understandable language.
Thanks for the book recommendation. I myself need to sign up for Medicare soon, so the book will be very useful.
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JoeRetire
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Re: Medicare Part C / SS statement has Part B premium deduction

Post by JoeRetire »

egghead wrote: Mon Sep 14, 2020 2:59 pm2. Social Security is correctly including a Part B deduction, and the Original Medicare Part A & B funds are used to cover United Healthcare’s Part C costs.
This.

This is how most Medicare Advantage plans work. This is exactly how my MA plan works.
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