2 Medicare Gotchas

By Mary Jo Heins


ONE: You Pay More for Medicare Parts B & D if you Have a Higher Income

If you google “Medicare premium”, you’ll most often see $144.60 sited as the monthly premium for Part B. However, it could be higher due to IRMAA – Income Related Monthly Adjustment Amount. Here are the highlights:


At the high end, Medicare Part B runs $491.60 per month. This could be a significant Gotcha in your retirement budgeting.


TWO: So You Checked the Box to have Your Rx Premium Taken out of Your Social Security Check Because It’s Easier…


You have a stand alone Part D prescription drug plan with XYZ Insurance Company. One of the options for paying the premium is to have it deducted from your Social Security check. You checked that box.


So instead of YOU ---> XYZ Insurance Company

You now have YOU ---> Social Security ----> XYZ Insurance Company


Really? You just added another entity into the equation and gave away your control!


This Gotcha came home to nest in 2019 when Social Security failed to remit premiums to insurance companies for Rx and Medicare Advantage plans. https://www.aarp.org/health/medicare-insurance/info-2019/medicare-social-security-error.html

Remitting the premium yourself is also advantageous if/when you want to change Rx plans. You don’t have to worry about Social Security messing up the move from one insurer to another.


Never have premiums deducted from your Social Security check.


Always retain control and remit the premium yourself, preferably through an automated, recurring method such as the EFT option on the application or through your bank’s bill paying mechanism.



2 Medicare Gotchas
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Mary Jo Heins - http://medicareinsurancedenver.com/


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