Medicare payments when starting Social Security

[Crabby Mike]

I just found out something I hadn't thought of, though maybe everyone but me knew it already ...


I started Medicare at 65 (of course), but held off on Social Security 'til 66, and will get my first deposit later this month. So I had been making my payments to Medicare through ACH from my bank, which I stopped after last month's payment, but was surprised to receive a refund check for that amount in the mail yesterday. What hadn't occurred to me was that (apparently) though your direct payments to Medicare are due in advance (as in, I think, the 25th or so of the previous month), Social Security will pay them the same month, which in my case is nearly in arrears (because I will get my deposits on the 4th Wednesday of the month). So my last direct payment, made in February, was for March coverage, which was already going to be paid out of my March Social Security deposit. Sounds obvious, I guess, but it just didn't dawn on me to cut off my payments after January, when I wasn't starting SS until March.


I suppose if you do autopay through Medicare, they might automatically make the transition correctly? I chose not to go that route, thinking I'd have better control this way, but obviously gave myself too much credit.

[audreyh1]

Quote:

Originally Posted by Crabby Mike I just found out something I hadn't thought of, though maybe everyone but me knew it already ... I started Medicare at 65 (of course), but held off on Social Security 'til 66, and will get my first deposit later this month. So I had been making my payments to Medicare through ACH from my bank, which I stopped after last month's payment, but was surprised to receive a refund check for that amount in the mail yesterday. What hadn't occurred to me was that (apparently) though your direct payments to Medicare are due in advance (as in, I think, the 25th or so of the previous month), Social Security will pay them the same month, which in my case is nearly in arrears (because I will get my deposits on the 4th Wednesday of the month). So my last direct payment, made in February, was for March coverage, which was already going to be paid out of my March Social Security deposit. Sounds obvious, I guess, but it just didn't dawn on me to cut off my payments after January, when I wasn't starting SS until March. I suppose if you do autopay through Medicare, they might automatically make the transition correctly? I chose not to go that route, thinking I'd have better control this way, but obviously gave myself too much credit.

Thanks for this detail. I know at some point I have to make this transition. So knowing when to stop payments is important. I plan to pay Medicare via bill pay directly from my HSA account.

My understanding is that if you are using Easypay, the Medicare autopay, they charge you an extra month but then reimburse later. I was hoping to avoid that.

[fosterscik]

I've been planning to pay my medicare costs with HSA funds from FRA until age 70. I was disappointed to learn that I am not allowed to pay medigap payments with an HSA.
(see for example: https://www.kiplinger.com/article/in...-tax-free.html).
I assume they are billed separately (Feds for medicare and insurance company for medigap) so two direct pays will be in my future.

[braumeister]

Quote:

Originally Posted by audreyh1 TMy understanding is that if you are using Easypay, the Medicare autopay, they charge you an extra month but then reimburse later. I was hoping to avoid that.

Not with me. It was totally seamless. Easypay stopped and SS deduction started, with no gap and no extra payment. I was quite impressed.

[audreyh1]

Right, just part D and part B, not Medigap. Medicare advantage premiums can also be from an HSA account.

I assume any Medicare deductible is also eligible.

Our plan is to use the HSA accounts to pay Medicare premiums that will otherwise be pulled from SS once we start SS, essentially bridging the 5 year gap between starting Medicare and taking SS at 70. We plan to use bill pay from our HSA account directly to Medicare.

The Medigap payment being not qualified will get paid from somewhere else.

Then there is the Part D premium which is paid to an insurer directly, but is qualified as an HSA eligible expense. Another bill payment from the HSA.

[audreyh1]

Quote:

Originally Posted by braumeister Not with me. It was totally seamless. Easypay stopped and SS deduction started, with no gap and no extra payment. I was quite impressed.

A couple of people here reported otherwise.

I’ll be paying careful attention to which month I am paying for with each Medicare premium payment.