Question about Social Security and Medicare Premium Deduction

[FiveDriver]

Quick Question about the Medicare Premium Deduction from SS Direct Deposit.

My DW will start her claim in 2024 at age 66. We have been paying her Medicare Premium every 3 months with an ACH out of our House Account. Our next ACH will be due in November, to cover her Medicare for December, January and February.

We can start her claim any month....do we have to wait until March to start ??

How will SS handle the change in Medicare deduction from her Direct Deposit ??

Will SS be savvy enough to understand any overlap in Medicare payment ??

If we want a SS Direct Deposit in March, which includes her Medicare deduction....do we start her claim in February (does Social Security pay a month in arrears ?)

Our local SS Office is busy as all heck on the first of the month and I can't get thru.

 

[CRLLS]

When I switched from 3-month auto withdrawals to SS autopay, it was in the middle of the 3-month already prepaid. As I recall, I did nothing. I can't remember if they delayed the SS autopay, issued a check, or refunded to the bank (I don't really think that last one was what happened). It all worked out in a month or so. I'm sure nothing has changed over the last 6 years in how they do things.

 

[ShokWaveRider]

Are the Medicare Payments deducted from SS Pre-Tax?

 

[jebmke]

When I switched from 3-month auto withdrawals to SS autopay, it was in the middle of the 3-month already prepaid. As I recall, I did nothing. I can't remember if they delayed the SS autopay, issued a check, or refunded to the bank (I don't really think that last one was what happened). It all worked out in a month or so. I'm sure nothing has changed over the last 6 years in how they do things.

worked the same with me. They shifted to deduction and it all reconciled.

 

[cathy63]

Are the Medicare Payments deducted from SS Pre-Tax?

No. The amount of SS you use for calculating income tax includes the part that was deducted for Medicare premiums.

 

[TheWizard]

Are the Medicare Payments deducted from SS Pre-Tax?

Yes or no, they are, but your entire SS payment is Federally taxable based on the gross amount, 85% of it for many of us...

 

[SecondCor521]

To answer the other unanswered questions:

You can still start her SS benefit in any month you wish. (I don't know how the Medicare payment switchover stuff works, but I'm sure it works out fine and you wouldn't double pay.)

Yes, SS pays one month in arrears, and you have to survive the entire month to get the SS benefit. So if you survive all of February, you receive your February payment in March.

 

[Dash man]

I suggest you call the national Social Security phone number to set up a telephone appointment for the month before you want to start benefits. It’s best to schedule early. Doing it by telephone appointment was a piece of cake for me and I was approved the same day. At the time of my appointment I received a call from my local SSA office right on time.

 

[mn54]

remember that you pay your medicare premium one month in advance but you receive your ss benefit one month late. if you start receiving ss for march, you will pay your medicare premium directly for march. the medicare premium will be deducted from your ss benefit starting in april.

 

[audreyh1]

SS is paid to us one month in arrears. For this reason they are paying you for the prior month, but the Medicare premium deduction is for the current month. So I know that I still have to pay that first month of SS Medicare premium directly.

We don’t use EZ Pay, we pay from our HSA. We pay monthly because we are subject to IRMAA.

 

[FiveDriver]

Thanks again for answering those last few questions of mine. I will call the SS phone bank, probably after the Holidays. She's already registered with SSA.

Our next 3 month Medicare ACH will cover her for Dec, Jan and Feb. So we might start SS in March (?) to pay for that month's Medicare, and see her first check in April. Or maybe start in February, and see the first check in March ??

Getting her claim started will be a nice 'raise' in pay for us.

 

[zl55lz]

Quick Question about the Medicare Premium Deduction from SS Direct Deposit.

My DW will start her claim in 2024 at age 66. We have been paying her Medicare Premium every 3 months with an ACH out of our House Account. Our next ACH will be due in November, to cover her Medicare for December, January and February.

We can start her claim any month....do we have to wait until March to start ??

How will SS handle the change in Medicare deduction from her Direct Deposit ??

Will SS be savvy enough to understand any overlap in Medicare payment ??

If we want a SS Direct Deposit in March, which includes her Medicare deduction....do we start her claim in February (does Social Security pay a month in arrears ?)

Our local SS Office is busy as all heck on the first of the month and I can't get thru.

You can file online too, usually. If they need anything further, you will be notified. I would not wait until the month before. Sometimes there are backlogs.

Standard procedure is to file in a window 3 months before. Make sure to let them know the exact age you want benefits to start.

It is true one is paid for the previous month, and one has to live throughout the entire month. Every second of it, as of current regs. There is no proration.

If it were me, I would continue to pay the Medicare premiums until all is settled. There can be an overlap, and I have heard it is not infrequent for two months of premiums to be withheld from the first check, and I have heard of even three months. Even so, the system will catch up with itself, reconcile, and reissue any amount due back to you once on schedule. I think it would be difficult to time the ending of paying premiums with the beginning of automation deduction. I would not want to risk a gap in coverage.

If you want taxes withheld from the benefits check, there is a form to fill out.

 

[Finance Dave]

I have some related questions:
1) We went through the online signup today for DW, but did not click "submit" yet....it's the next button on the page. We did not see any questions about withholding taxes...will we get a choice on this at some point?

2) It's odd that they did not show an estimated benefit through that process. Yes, we know the estimated amount based on our MySocialSecurity account...but I would think they would put an estimated number right in front of you before you have to click on submit...any idea why?

 

[meleana]

I have the same question. My husband is starting SS at age 70 (in April). Since 2020 the Part B premium has been taken out monthly from our checking account. (In NH this is allowed- the monthly payments instead of quarterly).


Anyway, so I was wondering if Medicare will automatically switch to taking the Part B premium out of his SS check or if he needed to do something to stop the checking account withdrawals.

 

[MissMolly]

I have the same question. My husband is starting SS at age 70 (in April). Since 2020 the Part B premium has been taken out monthly from our checking account. (In NH this is allowed- the monthly payments instead of quarterly).


Anyway, so I was wondering if Medicare will automatically switch to taking the Part B premium out of his SS check or if he needed to do something to stop the checking account withdrawals.

He doesn't need to do anything. It will automatically switch over. If there is a duplicate payment, they will automatically refund it. It may take a month or two, but they will straighten it out,.

 

[meleana]

He doesn't need to do anything. It will automatically switch over. If there is a duplicate payment, they will automatically refund it. It may take a month or two, but they will straighten it out,.

Thank you! That’s what I was hoping.

 

[ivinsfan]

I have to say of all government agencies we interact SS is by far the most seamless. They are like a well oiled machine.


Everyone asking here should just continue with quarterly SS medicare payments and SS will do what needs to be done.

 

[CardsFan]

I have some related questions:
1) We went through the online signup today for DW, but did not click "submit" yet....it's the next button on the page. We did not see any questions about withholding taxes...will we get a choice on this at some point?

When each of us went through the process there was no on-line link for withholding. In each case there was a follow-up phone call. As I understand it, this is the point you can request it. We did not.

There is also a form you can print and send in. We considered this, but then just decided to continue with quarterly payments.

 

[Eucerin]

A different question on this subject, can Medicare payment not being auto deducted from SS? Reason is that we have large amount of HSA that need to be used

 

[meleana]

A different question on this subject, can Medicare payment not being auto deducted from SS? Reason is that we have large amount of HSA that need to be used

You know I read somewhere quite awhile ago that it is possible but there was a "gotcha" reason it wasn't recommended. But I can't remember what that was.



Also- a lot of arguments back and forth as to if it was even possible.

 

[SecondCor521]

A different question on this subject, can Medicare payment not being auto deducted from SS? Reason is that we have large amount of HSA that need to be used

I don't believe so.

But you can just withdraw from the HSA in the amount of the Medicare premiums, and those withdrawals will be qualified and therefore zero tax impact.

There's no HSA requirement that the money go directly from the HSA to the medical expense itself. The only requirement is that the HSA withdrawals to date are less than the qualified medical expenses to date.

 

[braumeister]

A different question on this subject, can Medicare payment not being auto deducted from SS? Reason is that we have large amount of HSA that need to be used

AFAIK it is possible, but you have to contact Soc Sec (phone, local office, or a secure message from your SS account online) and make the request. It's not a standard thing, so they will have to send you the relevant forms and instructions.

 

[Eucerin]

It seems complicated and near impossible. Thanks to you all. We will just reimbursement the amount from the HSA account

 

[oldtimer]

I have some related questions:
1) We went through the online signup today for DW, but did not click "submit" yet....it's the next button on the page. We did not see any questions about withholding taxes...will we get a choice on this at some point?

You have to request either 7%, 10%, 12%, or 22% tax withholding in the comments field.

 

[meleana]

I have some related questions:
1) We went through the online signup today for DW, but did not click "submit" yet....it's the next button on the page. We did not see any questions about withholding taxes...will we get a choice on this at some point?

2) It's odd that they did not show an estimated benefit through that process. Yes, we know the estimated amount based on our MySocialSecurity account...but I would think they would put an estimated number right in front of you before you have to click on submit...any idea why?

The application doesn’t address taxes and it really should. Anyway, there is a W4-V form you can mail in to your local SS office for the withholding. We were told to wait until my husband got the approval letter and then mail it in.