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Medicare and Health Care


*This is a non-medical board. This site shall not be used to seek professional, medical or legal consultation.

Medicare is health insurance for people age 65 or older, under age 65 with certain disabilities, and any age person with End-Stage Renal Disease (ESRD). There are many different parts to Medicare; with all of these options, it can be confusing.

This forum will allow members to share their experience with medicare and seek advice* on certain medicare-related situations.

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wyre  
#1 Posted : Wednesday, February 10, 2021 10:02:24 AM(UTC)
wyre

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Just got my annual Benefits statement from Social Security and I am pretty sure there’s an error. For background, after retirement in fall 2019 the WEP penalty due to CSRS pension kicked in and my SS was reduced by 57%. I signed up for Medicare B which took effect in Jan 2020. I paid $144.60 in Jan for part b and had a small ss payment deposit of $125. An IRMAA adjustment based on earlier (pre retirement) income kicked in as of Feb. The cost of Medicare went up from $144 to $277 (which exceeded my full social security benefit reduced by WEP. So in Feb they took my whole social security to pay Medicare and invoiced me an additional $234 for the yearly differential, which I paid in March. My annual SSa-1099 only shows the January total benefit and the Jan medicare b payment. None of the money that was put to Medicare B from Feb to Dec 2020 is showing up as a premium deducted from benefits, so my total SSA income seems off by about $3000. I believe — but would be happy to be corrected — that this is a mistake, and that SS should include money paid to part B Medicare as part of my annual statement. While I’d be happy to have a lower income for the year, I don’t want this to come back to haunt me. Getting through to social security is not easy ... so thought I should post here first. Does this seem like an error? Should I request a corrected 1099? If I calculate the actual amount paid to Medicare but there’s a discrepancy with my initial 1099, is that something that might trigger a review? Seems like lots of Tax trouble for a tiny amount of $.
GoHuskers  
#2 Posted : Saturday, February 13, 2021 7:13:47 PM(UTC)

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I agree that the 1099 is incorrect. This is a statement from SSA's instructions on handling 1099 inquiries that instructs technicians regarding what needs to be done to produce a correct 1099 in your situation. It is from the Programs Operations Manual System (POMS) Chapter GN 05002.040.

"Supplementary Medical Insurance (SMI) Premiums

When a beneficiary entitled to SMI receives a monthly Social Security payment, the premium is deducted from the payment for each month of coverage. In some cases, however, the amount of the monthly benefit may be lower than the amount of the monthly premium (we refer to this workload as LESSDO cases). After offsetting the monthly benefit for premium collection purposes, a premium liability amount remains. The PSC will bill the beneficiary directly for the remaining liability amount. Additionally, the PSC will post a 020 event, which creates the Medicare premiums on the SSA-1099 on the line Medicare Part B Premiums deducted from your benefits. Since Box 3 (and Box 5) will no longer show zero, we can generate a benefit statement at the same time using the tax statement year (TSY) entry."

It appears that in your case the technician who did the billing neglected to do the input of the "020" event which was necessary to produce the proper 1099 entries reflecting the amount deducted and applied to the Medicare premiums for the remaining months.

I have no idea whether providing IRS with the additional amount not reflected on the 1099 would trigger any sort of review.
thanks 1 user thanked for this useful post.
wyre on 2/14/2021(UTC)
wyre  
#3 Posted : Sunday, February 14, 2021 6:32:18 AM(UTC)
wyre

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Thanks! Very helpful info. I’ve just gotten a corrected ssa-1099 which shows the amount of my SS benefit that they paid to Medicare directly ( but it does not include the amount billed to me separately. ) I’m not itemizing medical expenses, but I can see where this would potentially cause confusion if I were. I supposed it could be added separately as an insurance expense, but it’s something to be aware of.

Similarly, my SS account shows that I get 0 benefit and a letter I received indicating the surcharge I will be expected to pay also states “we are writing to tell you that beginning December 2020 we are stopping the retirement benefits which you receive.” “We will continue to bill you for your Medicare Part B premiums.” This, too, is confusing because it does not indicate that my social security is being paid to Medicare by SSA. On the second page, five paragraphs later, it does acknowledge that the monthly benefit is insufficient and that they’re invoicing me for the differential from Dec 2020 to Nov 2021. This is also a surprise since we can’t just multiply by 12 to get yearly amount. I’m planning to request a recalculation of the IRMAA, so hoping that I can clear up some of these other issues at the same time so it doesn’t become an annual headache — but happy to report they did follow up on my request to issue a corrected 1099 quickly.

Thanks again for this citation — knowing exactly what to ask for always helps!!
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