Medicare Billings, Premiums and Social Security

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
Post Reply
Topic Author
SpideyIndexer
Posts: 866
Joined: Thu Apr 02, 2015 10:13 pm

Medicare Billings, Premiums and Social Security

Post by SpideyIndexer »

Trying to make sense from Social Security Letters and Medicare Billings. (Spouse and I new to SS.)

1. For a while my SS Benefit will be less than my premiums and part D IRMAA. Will the amount paid from my SS benefit appear on my Medicare bill and show up in my Payment History on My Medicare account?

2. The letters from the SSA only say the the Medicare Part B premium amount is deducted and the amount stated for this is correct, including our Part B IRMAA. But the arithmetic only makes sense if I include the Part D IRMAA in the deductions.

3. How would you interpret this combination of statements in a letter from the SSA. "We pay Social Security Benefits for a given month in the next month." OK so far but this is followed by these: "You will receive XXX around June 16 2023. This is the money you are due through May 2023." Quite confusing, would that mean benefits through April? Or May? So far I cannot seem to make sense of the arithmetic for the XXX amount. (This letter concerns a benefit amount correction.)

4. Is it correct that SS will deduct Medicare premiums whether or not they have already been paid up for several months? And Medicare will correct any overpayments. (One thread mentioned CMS does this quarterly.)
Jagger
Posts: 68
Joined: Fri Sep 25, 2020 10:05 am

Re: Medicare Billings, Premiums and Social Security

Post by Jagger »

Wait to see the amount of your first couple of benefits, then do the math
User avatar
tuningfork
Posts: 885
Joined: Wed Oct 30, 2013 8:30 pm

Re: Medicare Billings, Premiums and Social Security

Post by tuningfork »

It took a few months for my medicare premium bills to true up. First bill was too low, second bill was high with correction from first bill being too low, third and subsequent bills were the correct amount.
tunafish
Posts: 974
Joined: Mon Apr 26, 2021 9:47 am

Re: Medicare Billings, Premiums and Social Security

Post by tunafish »

www.mymedicare.gov has a table of SS, deductions for Medicare, etc.
ehh
Posts: 724
Joined: Mon Feb 01, 2021 10:04 am

Re: Medicare Billings, Premiums and Social Security

Post by ehh »

SpideyIndexer wrote: Sat Jun 10, 2023 2:37 pm 4. Is it correct that SS will deduct Medicare premiums whether or not they have already been paid up for several months? And Medicare will correct any overpayments. (One thread mentioned CMS does this quarterly.)
Correct.

In my case it was one month of double payment, the refund was prompt (but that might have been lucky timing), and the refund came in the form of an old school US Treasury check.

My situation was simple. Your situation sounds a bit complex. So YMMV. I suspect it will settle down within a couple of months and Medicare will either send you a bill or you will eventually receive a refund check.
MGBMartin
Posts: 1145
Joined: Thu Nov 04, 2021 11:09 am

Re: Medicare Billings, Premiums and Social Security

Post by MGBMartin »

When I started on Medicare I got my first bill for the full 3 months premium despite me signing up for a MA plan with Part B give back.
The amount I paid for those 3 months was more than what my part of the premium should have been for the entire year but I paid anyhow. I called Medicare to try sort it out and they said I’d have a credit which would be used as the year progressed.
Early the following year I finally got a refund for the remaining credit.
Bad spellers of the world untie | Autocorrect is my worst enema
Topic Author
SpideyIndexer
Posts: 866
Joined: Thu Apr 02, 2015 10:13 pm

Re: Medicare Billings, Premiums and Social Security

Post by SpideyIndexer »

I guess it is prudent to pay the latest Medicare billing to avoid being dropped due to any delays in squaring things up with the SSA.
User avatar
Eagle33
Posts: 2391
Joined: Wed Aug 30, 2017 3:20 pm

Re: Medicare Billings, Premiums and Social Security

Post by Eagle33 »

SpideyIndexer wrote: Sat Jun 10, 2023 6:51 pm I guess it is prudent to pay the latest Medicare billing to avoid being dropped due to any delays in squaring things up with the SSA.
:sharebeer Very wise of you to do so. Be sure to be covered and fight for the refund while covered.
SpideyIndexer wrote: Sat Jun 10, 2023 2:37 pm 3. How would you interpret this combination of statements in a letter from the SSA. "We pay Social Security Benefits for a given month in the next month." OK so far but this is followed by these: "You will receive XXX around June 16 2023. This is the money you are due through May 2023." Quite confusing, would that mean benefits through April? Or May?
given month = May 2023
next month = June 16, 2023

You have to live the full month of May to receive your May benefit that is sent to you in June.
Topic Author
SpideyIndexer
Posts: 866
Joined: Thu Apr 02, 2015 10:13 pm

Re: Medicare Billings, Premiums and Social Security

Post by SpideyIndexer »

I learned some interesting details of my spousal benefits after my wife's benefit was reduced by WEP.

1. My spousal benefit will be calculated not from the my spouse's "base" PIA, but from my spouse's "WEP reduced PIA." This amount divided by 2 is my spousal benefit.

2. Assuming a benefit claimed at FRA. one's WEP reduced PIA can be less than one's benefit amount, because the WEP benefit reduction is limited to 50% the amount of one's non-covered pensions.

3. Point 2 implies that my gross spousal benefit my be less than half of my spouse's gross benefit.

Does my understanding seem correct?
hvaclorax
Posts: 598
Joined: Mon Nov 21, 2016 5:01 pm

Re: Medicare Billings, Premiums and Social Security

Post by hvaclorax »

Not sure I can go through all of your questions. Having worked as a medical practitioner and also with some input from colleagues I’ll say this. Medicare/CMS does a good job of keeping the accounts accurate and eventually clear to you. IRMAA and the other issues that you have make it difficult to give a simple answer.
The first year on Medicare is the issue here. As others above said, give it time. At the worst you could request a satisfactory answer after the changes are in, say next year. Payments in arrears are routine. This is most often the issue that makes real time understanding difficult.
Bottom line, Medicare does a very good job just slow.
In my way of thinking the dollar amounts don’t justify the time invested to understand.
(Questions about PAYMENTS of medical charges on the other hand are akin to Dante’s inner circle of hell.)
HVAC
CuriousGeorgeTx
Posts: 328
Joined: Mon Dec 14, 2015 4:59 pm

Re: Medicare Billings, Premiums and Social Security

Post by CuriousGeorgeTx »

MGBMartin wrote: Sat Jun 10, 2023 5:07 pm When I started on Medicare I got my first bill for the full 3 months premium despite me signing up for a MA plan with Part B give back.
The amount I paid for those 3 months was more than what my part of the premium should have been for the entire year but I paid anyhow. I called Medicare to try sort it out and they said I’d have a credit which would be used as the year progressed.
Early the following year I finally got a refund for the remaining credit.
Thanks. DW is starting Soc Sec next month, having achieved Full Retirement Age. It shows on SSA.gov that her benefit has been approved. Still, the Medicare statement generated June 25 for Aug, Sep, & Oct is for the full premium, including IRMAA for all 3 months (we have been filling brackets that begin with a 2 with Roth conversions). I guess we will go ahead an pay it before July 25 and look forward to eventually getting a refund. Paying it with a cash back credit card and receive the refund as a check should ease the pain of the lost time value of money. (Its not a lot, but with the IRMAA, it is not trivial either).
Post Reply