Making Medicare SimpleJust about everywhere you look for information, you can see that Medicare Part B premiums are deducted from your Social Security check each month.  As a reminder, most of us are paying $104.90 in 2015 (see here for the premium pricing chart).  Some seniors, however, want Medicare benefits once they turn 65, but don’t want to draw Social Security income (or vice versa).  Since Social Security and Medicare are actually separate entities, it is possible to have one without the other.  Let’s explore reasons to do one without the other.  This is not an exhaustive list, but it will give you an idea.

Reasons to Delay Social Security

There are several reasons you may look at delaying Social Security income.  Here are a couple:

  • You are continuing to work beyond 65
    • You need to continue group coverage for your spouse’s sake until he or she turns 65
    • You are working towards a certain balance to accrue in your retirement accounts before you exit the work forcePayment Options
  • You want to wait until full retirement age before drawing Social Security
    • You work until you get to that age to maximize benefits, and/or
    • You have supplemental income (like an annuity or life insurance cash value) that will sustain your income until full retirement age for max benefits

Reasons to Draw Social Security, But Not Draw Medicare

Likewise, there are reasons that one may want to draw Social Security and not draw Medicare.  Some fortunate individuals carry great health benefits with them once they retire from their workplaces (Like GM, Chrysler, etc).  Keeping these plans are sometimes the better option, but there are things to consider:

  • The “Cadillac Tax,” even though it’s effective 2018, can have an affect on your current coverage (More on this later)
  • Penalties in Parts A, B, and D if too much time passes between when group coverage ends (no matter the age) and when you enroll in Medicare.
  • Once you end your group coverage, you are now in a guaranteed issue window to enroll in any Medicare Supplements (No Health Questions)

In future posts, I will address the topics in this color, but for  now, I’ll talk about how you pay for Medicare if you’re still working.

How to Pay if You’re Still Working

Medicare CardEven though Social Security and Medicare are separate programs, you can address enrollment in both at your nearest Social Security office.  The best thing you can do is, before the month of your 65th birthday, visit one of those offices.  You can inform the office not to start your Social Security benefits there.  What you do next is important: Choose how you will pay.  There are 3 options to pay for Medicare outside of Social Security deductions.

  1. Sign up for Medicare Easy Pay (Monthly deduction from your bank account)
    • Mail an Authorization Form to:    Medicare Premium Collection Center
      PO Box 979098
      St. Louis, MO  63197-9000
    • The processing usually takes 6-8 weeks, and you will receive mail from CMS telling you how much will be deducted.
    • Once processed, the payment usually comes out on the 20th of each month.
    • The system will only attempt each payment once.  If it is rejected, you will receive instructions on how to make a direct payment
  2. Mail your monthly payment  in the form of check or money order to:  Medicare Premium Collection Center
    P.O. Box 790355
    St. Louis, MO 63179-0355
  3. Pay by credit card–complete the bottom part of your bill and send it to the same address above.

All in all, Medicare is pretty flexible about how you pay your premiums.  I hope this helps!  Please comment below and let  me know what other questions you may have.  I’ll do my best to address them in future posts.  In the meantime, check out what Part B Covers.

How Do I Pay for Medicare If I'm Still Working?https://simpleseniorhealth.com/wp-content/uploads/2015/06/bills-1024x768.jpghttps://simpleseniorhealth.com/wp-content/uploads/2015/06/bills-150x150.jpgRaphaelAbout MedicareJust about everywhere you look for information, you can see that Medicare Part B premiums are deducted from your Social Security check each month.  As a reminder, most of us are paying $104.90 in 2015 (see here for the premium pricing chart).  Some seniors, however, want Medicare benefits once...Making Senior Health Simple