I am under the age of 65 and get disability social security. I am charged a $500 per month Medicare premium due to my age; however, I have terminal cancer. Must I still pay the extra $500 per month until I turn 65? Since I qualify for Compassionate Program due to terminal cancer, is the income I receive from SSI nontaxable? Thank you

Hi,

I'm very sorry to hear about your prognosis.

Social Security's compassionate allowance program is basically just a program designed to expedite the processing of disability claims filed by people with specific illnesses, which in many cases are terminal (https://www.ssa.gov/compassionateallowances/). It has nothing to do with a person's benefit rate or Medicare premium amount.

Medicare premiums do not vary due to a person's age, so I don't know why your Medicare rate is so high. People receiving Social Security disability benefits get free Part A coverage after they've been entitled to disability benefits for at least 2 years, and the base monthly rate for Part B coverage in 2017 is $134. However, people with annual incomes in excess of $214,000 can be required to pay as much as $428.60 per month for Part B coverage.

So, I don't know what the $500 that you are paying actually covers. Most communities have agencies that assist people with Medicare issues, so you might try consulting someone like that to see if they can help you.

A percentage of your Social Security benefits may be taxable depending on your total income level. Essentially, if you are single and with a yearly income of more than $25,000 counting half of your benefits, or married with a joint income exceeding $32,000 including half of your benefits, at least some of your Social Security benefits would be taxable (https://www.ssa.gov/planners/taxes.html).

Best, Jerry