I started taking full Social Security benefits at age 67 but also continued to work until age77 next year.
My Question: I've been getting monthly SS benefits that automatically take out Medicare Part B premiums of around $283.00/month. However, since I'm still working, my payroll also deducts $254.00/month for Medicare. I also now pay about $350/month for my retired wife's Medicare premium There is no compensation to me at the end of the year for this "Double-Dipping" of my premiums. What's wrong with this picture and what can I do about it? Thanks Larry for any info.

Hi,

Unfortunately, all I can do is explain the situation. Your payroll deductions go towards funding Part A of Medicare, and you continue to pay those for as long as you continue working. It doesn't matter how much you've previously contributed, nor whether or not you already have Medicare coverage.

The monthly premiums deducted from your Social Security benefits, or paid quarterly for those not receiving Social Security payments, go to fund optional Part B of Medicare. Also, optional Part D Medicare premiums are sometimes paid by withholding from Social Security benefits. The premium amounts for Part B are variable depending a person's yearly income, and can be adjusted if the person's income changes. Obviously, these premiums are only payable if you currently have the coverage.

On a potentially positive note, your continued earnings may result in higher Social Security benefits. Your benefit amount is based on your best 35 years of inflation adjusted earnings, so if your current earnings are higher than any of your previous best 35 years, you should be seeing increases in your benefit amount. Social Security periodically makes these adjustments automatically, but you can request a manual recomputation by submitting a written request and proof of your recent years' earnings (i.e. W-2 forms for wages, Schedules SE for self-employment income) to a Social Security office.

Best, Jerry