Ask Larry

Do You Have Any Thoughts On My Situation?

As of December 2020, my social security was suspended. All of my social security went to partially pay for my Medicare. I then was billed about $1050 a year for the difference. I see others have this problem too. I didn't find out until I didn't get a 1099 for 2021. I have called Social Security and they seem perplexed - no one can give me an explanation as to why my $4000 a year benefit was suspended. I have been told my Medicare bill is now $6000 and I might have to pay it out of pocket or have my Medicare cancelled for non-payment. I have not received any bills for Medicare. I do pay $70 a month for my drug coverage, taken out of my checking account. Any thoughts about what is going on?

Hi. Without having access to your Social Security records I can only hazard an educated guess. It sounds like your Part B Medicare premiums are higher than the standard rate due to the Income Related Monthly Adjustment Amounts (IRMAA). People with modified adjusted gross incomes (MAGI) above certain levels must pay a higher monthly premium rate for Part B of Medicare. The applicable premium rate depends on the amount of the person's MAGI (https://www.medicare.gov/your-medicare-costs/part-b-costs).

The bottom line is that if your Social Security benefit rate isn't high enough to cover your Part B premium amount, then you must pay your excess Part B premiums out of pocket in order to keep the coverage. I have no way of knowing whether or not your Part B premium rate is correct, though, nor do I know if you might meet any exceptions to the increased premium rate. I would suggest that you read the following Medicare website to determine if you might be eligible for a lower Part B premium rate: https://www.hhs.gov/about/agencies/omha/the-appeals-process/part-b-premi....

Best, Jerry

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Posted: 
Mar 14 2022 - 1:09pm
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