Transition to Social Security Check paying Medicare Premiums

[audreyh1]

I know this has been discussed in general at some point, but I’m not sure the specifics of which month Medicare premiums are covered by your SS payment.

Social Security pays in arrears - say you start SS payments in March, you’ll get your first check in April. And you also have a Medicare premium amount withheld from that check.

But which month is that SS payment Medicare deduction paying for - March or April?

Normally pre SS you pay Medicare premiums the prior month - in February for March coverage, etc. (Edit to add: I forgot that it’s monthly if you pay IRMAA, otherwise it’s quarterly)

So is that first SS check actually paying to cover the first month you start SS - that is provides March coverage even though you don’t receive that first check until April? This is quite a shift in timing.

I suppose it could also be handled by taking out two months premiums with that first check?

So you only need to pay for coverage through the month before you start SS, in this example February, which you would pay for in January?

We aren’t using Easypay, DH is instead paying premiums to CMS Medicare directly out of his HSA account which is working well for now. I’m also hoping to avoid a reimbursement situation, at least back into an HSA account.

Anyway appreciate someone explaining how this works.

 

[MissMolly]

I know this has been discussed in general at some point, but I’m not sure the specifics of which month Medicare premiums are covered by your SS payment.

Social Security pays in arrears - say you start SS payments in March, you’ll get your first check in April. And you also have a Medicare premium amount withheld from that check.

But which month is that SS payment Medicare deduction paying for - March or April?

Normally pre SS you pay Medicare premiums the prior month - in February for March coverage, etc.

So is that first SS check actually paying to cover the first month you start SS - that is provides March coverage even though you don’t receive that first check until April? This is quite a shift in timing.

I suppose it could also be handled by taking out two months premiums with that first check?

So you only need to pay for coverage through the month before you start SS, in this example February, which you would pay for in January?

We aren’t using Easypay, DH is instead paying premiums to CMS Medicare directly out of his HSA account which is working well for now. I’m also hoping to avoid a reimbursement situation, at least back into an HSA account.

Anyway appreciate someone explaining how this works.

The Medicare premium that will be withheld from your Social Security check that's paid in August (for July) covers your Part B premium for August. So, if you already have Part B coverage you'll need to pay your Medicare premiums out of pocket through July.

https://maximizemysocialsecurity.com/which-months-medicare-premium-will-be-withheld-my-social-security-benefit-july-thats-paid-august

 

[audreyh1]

Great, thanks! So in my example above DH would have to pay the premium for March, doing so in February, and SS check will cover the Medicare premiums from April onwards.

 

[Sue J]

Here’s how I keep track of ours. In December I receive the SS benefit from November, minus the Medicare Part B premium for December. In addition to that, we pay for DH’s Medicare Part B premium for January. DH does not get SS, we pay for his Medicare monthly.

 

[Rianne]

Great, thanks! So in my example above DH would have to pay the premium for March, doing so in February, and SS check will cover the Medicare premiums from April onwards.

Sort of. In our case, I started Medicare and SS in Sept. 2022. I had to pay a full 3 months of Medicare ahead of time and will be reimbursed that amount sometime this month (December) because they did not take Medicare out until October (my first SS payment).

I thought since I took SS on Sept. 1 I would get 4 months of SS for the year 2022. Not so. I get 3 months of SS in 2022 because of the arrears accounting.

DH started Medicare on 12/1/2022. He had to pay Medicare 3 months in advance, but he hasn't taken SS yet.

 

[CRLLS]

If you happen to pay Medicare for a particular month and the SS withholding overlaps that month, any remaining Medicare balance will be returned to you. It happened to me.

 

[audreyh1]

Sort of. In our case, I started Medicare and SS in Sept. 2022. I had to pay a full 3 months of Medicare ahead of time and will be reimbursed that amount sometime this month (December) because they did not take Medicare out until October (my first SS payment).

I thought since I took SS on Sept. 1 I would get 4 months of SS for the year 2022. Not so. I get 3 months of SS in 2022 because of the arrears accounting.

DH started Medicare on 12/1/2022. He had to pay Medicare 3 months in advance, but he hasn't taken SS yet.

We pay Medicare premiums monthly due to paying IRMAA.

DH did initially pay for 3 months, but after that it was billed monthly. He’s been on Medicare for a couple of years, but hasn’t started SS yet.

I suppose they monthly payments simplifies things for us in terms of this transition.

 

[audreyh1]

If you happen to pay Medicare for a particular month and the SS withholding overlaps that month, any remaining Medicare balance will be returned to you. It happened to me.

Thanks. How did they return it to you?

 

[zl55lz]

I know this has been discussed in general at some point, but I’m not sure the specifics of which month Medicare premiums are covered by your SS payment.

Social Security pays in arrears - say you start SS payments in March, you’ll get your first check in April. And you also have a Medicare premium amount withheld from that check.

But which month is that SS payment Medicare deduction paying for - March or April?

Normally pre SS you pay Medicare premiums the prior month - in February for March coverage, etc.

So is that first SS check actually paying to cover the first month you start SS - that is provides March coverage even though you don’t receive that first check until April? This is quite a shift in timing.

I suppose it could also be handled by taking out two months premiums with that first check?

So you only need to pay for coverage through the month before you start SS, in this example February, which you would pay for in January?

We aren’t using Easypay, DH is instead paying premiums to CMS Medicare directly out of his HSA account which is working well for now. I’m also hoping to avoid a reimbursement situation, at least back into an HSA account.

Anyway appreciate someone explaining how this works.

My experiences with this (a lot) have been that they could take two or three months of premiums out of the first check. Also, if I were already paying Medicare premiums quarterly, etc., I personally would continue to do so until adjusted. They will eventually get it adjusted and returned. I would not want a mess of being terminated from Part B and then having to deal with that as well.

 

[MissMolly]

Thanks. How did they return it to you?

For me, it just showed up in my bank account one day. No warning. Just BOOM!

 

[CardsFan]

Thanks. How did they return it to you?

For me, it just showed up in my bank account one day. No warning. Just BOOM!

In my case I was paying quarterly by check, and I got a check for the overpayment.

 

[CRLLS]

Thanks. How did they return it to you?

Others have posted how it was returned. I remember seeing a statement of some sort. I don't remember whether mine was an actual check or a deposit back to my bank account. Either way, I was made whole, and that's all that matters to me. You should be confident that you would be also.

 

[Dash man]

I started SS in June 2021 and got my first check in July 2021. Medicare started that August and they too the basic Part B premium out of my August check. In September they took a catch up payment of my IRMAA payment plus the regular Medicare plus IRMAA premiums. That September was a small check. Everything has been as expected after that.

 

[audreyh1]

Others have posted how it was returned. I remember seeing a statement of some sort. I don't remember whether mine was an actual check or a deposit back to my bank account. Either way, I was made whole, and that's all that matters to me. You should be confident that you would be also.

I’m not worried about that. I just don’t want to deal with someone trying to put money back into the HSA account.

And I would rather avoid a refund situation.

 

[audreyh1]

I started SS in June 2021 and got my first check in July 2021. Medicare started that August and they too the basic Part B premium out of my August check. In September they took a catch up payment of my IRMAA payment plus the regular Medicare plus IRMAA premiums. That September was a small check. Everything has been as expected after that.

Thanks, that helps a lot!

Did you start SS two months before you started Medicare?

 

[Dash man]

Thanks, that helps a lot!

Did you start SS two months before you started Medicare?

Yes, I had my telephone appointment in early June, it was approved immediately and I was told I’d get my first deposit on the second Wednesday of July. And it’s worked like clockwork. I signed up for Medicare in May and it started Aug 1. I was actually impressed how smoothly the whole thing went. He did tell me the IRMAA might need some time to catch up, so the different amounts the first three deposits didn’t surprise me.

 

[audreyh1]

Yes, I had my telephone appointment in early June, it was approved immediately and I was told I’d get my first deposit on the second Wednesday of July. And it’s worked like clockwork. I signed up for Medicare in May and it started Aug 1. I was actually impressed how smoothly the whole thing went. He did tell me the IRMAA might need some time to catch up, so the different amounts the first three deposits didn’t surprise me.

OK, that explains your delayed Medicare premium deductions then since you started Medicare later than SS.

Yeah, we went through some delayed billing for the IRMAA portion when DH started Medicare, but then very consistent.

 

[audreyh1]

OK all, thanks for all the help.

Thus far we‘ll expect SS to take over Medicare premium payments the month after we start SS, and that we have to pay Medicare premium for that first month of SS directly.

Since DH is already on Medicare and paying monthly, this should be fairly smooth.

Of course we’ll go over this with the SS office when we sign up (if we get to talk to a human), but I wanted to know ahead of time how this transition is supposed to work.

 

[xlf11]

Another safer way is to switch Medicare payment from HSA to a credit card or checking earlier to avoid overpayment situation. After SSB settled, reimburse actual Medicare payment from HSA, which you need to do anyway after direct deduction from SSB. So just do it a month or two earlier than otherwise...

 

[audreyh1]

Another safer way is to switch Medicare payment from HSA to a credit card or checking earlier to avoid overpayment situation. After SSB settled, reimburse actual Medicare payment from HSA, which you need to do anyway after direct deduction from SSB. So just do it a month or two earlier than otherwise...

Yes, when it gets close he’ll probably pay Medicare premiums from a credit card for that last month or two. Once SS is deducting the Medicare premiums we plan to reimburse ourselves from the HSA for those payments coming out of the SS check anyway, so minor difference.

Thanks for the suggestions.

 

[xlf11]

Yes, when it gets close he’ll probably pay Medicare premiums from a credit card for that last month or two. Once SS is deducting the Medicare premiums we plan to reimburse ourselves from the HSA for those payments coming out of the SS check anyway, so minor difference.

Thanks for the suggestions.

You are welcome. My own experience was only slightly different with quarterly payment through CC before SSB started: paid Part B to Nov. and SSB started on Nov. as well, got paid in Dec.. Thought I would get a refund, but it turned out to be just perfect as part B is prepay (Nov. SS to deduct Dec. part B). My wife claimed SSB/Medicare at the same, she got two months part B deduction for the first check.

 

[audreyh1]

You are welcome. My own experience was only slightly different with quarterly payment through CC before SSB started: paid Part B to Nov. and SSB started on Nov. as well, got paid in Dec.. Thought I would get a refund, but it turned out to be just perfect as part B is prepay (Nov. SS to deduct Dec. part B). My wife claimed SSB/Medicare at the same, she got two months part B deduction for the first check.

Yes, that how we’ll try to swing it now that I understand the SS Medicare premium deduction is for the following month (the same month you receive the check). Monthly payments makes this transition easier.

 

[Masquernom]

Ok, this thread has me confused. I selected to start SS and Medicare in January 2023. My birthday is mid-January. My employer insurance ends December 2022. I requested to have my Medicare payments taken out of my SS. My first SS check comes third Wednesday in February.

The letter from SS says my Medicare starts beginning January 2023. I'm wondering how Medicare will get paid then.

 

[audreyh1]

Ok, this thread has me confused. I selected to start SS and Medicare in January 2023. My birthday is mid-January. My employer insurance ends December 2022. I requested to have my Medicare payments taken out of my SS. My first SS check comes third Wednesday in February.

The letter from SS says my Medicare starts beginning January 2023. I'm wondering how Medicare will get paid then.

If you start SS and Medicare at the same time, you have two months premiums taken the first SS check, and it does covers the first month on SS. Several people have posted that scenario above.

It’s those of us who start Medicare before taking SS who have to pay the Medicare premium in advance for that first SS month.