How the upping of pay Social Security office workers is quietly, but majorly, going to change certain Medicare premium payers in 2025. If your Social Security check is getting bigger, your Medicare payment route could automatically change, and you might not even be aware of it.
This new policy is a fallout from the Social Security Fairness Act (SSFA) which came into effect in January 2025 upon being approved by the President. The bill, aimed at the repeal of both the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), will result in a significant boost in the Social Security payments of those who get their retirement income from the public sector. Consequently, the collection of Medicare premiums will be done differently.
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Now some people are actually going through it, and others may eventually have to!
What Is the Social Security Fairness Act?
The parties social welfare, safety, and health, and the labor unions represented were all affected positively by the Social Security Fairness Act when it became law. The restoration of full benefits to certain retirees, particularly those who performed duties in the public sector, is the main feature of the Act.
The changes in the program have resulted in the SSA paying millions of retired workers who are now getting back pay and increased monthly payments, according to the Social Security Administration (SSA).
Why It Could Affect Your Medicare Premiums
Previously, if your Social Security funds were not enough to cover the part B and/or part D Medicare premiums, you had a choice of paying these premiums yourself or using one among the three payment options: Medicare’s Easy Pay, your CSRS annuity, or manual pay. The process will require you to pay the premium yourself if your benefit amount rejected by your Medicare Part B was lower than the required payment. But you could use any of the above three payment methods the program provided to go around this situation.
At this time, now that your Social Security benefit has been adjusted upwards, it is possible that the SSA will commence automatically deducting your Medicare premiums from your monthly check.
From an account of Kiplinger, that can be accessed via a link on chatgpt.com which is about the Social Security Fairness Act, your premiums will now be taken by the SSA themselves if the elderly’s new Social Security monthly payment is such that they can cover the Medicare premiums too.
If I Pay Medicare Directly, What Action Should I Take?
If you manually pay Medicare premiums at the moment, the thing to do is not to cancel or alter anything now. The SSA will send a notice to inform you about your new benefit and payment method.
Until you receive the information above, make sure that you:
- Continue paying your Medicare bill the same as always
- Do not stop using Medicare Easy Pay or bank payments until you have verified the change
- Comply with the payment procedures stated on your Medicare premium bill
Not paying a premium at all even by accident could cause your coverage to be terminated.
If you had been paying premiums directly through CSRS annuity deductions, the SSA may now handle those deductions from your Social Security check henceforward. Direct your queries to SSA, not the Office of Personnel Management (OPM).
In case I have already carried out the prepayment of the Medicare premiums, what do I do?
It might be the case that you had paid for your future Medicare premiums in advance. If this is true, you don’t even have to take any action as the Centers for Medicare & Medicaid Services (CMS) will automatically give you a refund once the premiums start to be shifted
Only when a refund is not made would you request one. Then you could be able to:
- Call Medicare at 1-800-MEDICARE to confirm overpayment
- Contact SSA to verify premium deduction
- Write a refund request if that is case, and provide the necessary documentation (e.g., billing statements or bank records)
How to Cancel Medicare Easy Pay if Needed
If you indeed have a situation where Medicare Easy Pay is to be stopped, the two methods are:
By mail:
- Download and fill out Form SF-5510 (Authorization Agreement for Preauthorized Payments)
- Select the change type (cancel or modify)
- Mail it to:Medicare Premium Collection CenterP.O. Box 979098St. Louis, MO 63197-9000
Online:
- Sign in to your account on Medicare’s secure website
- Access “My Premiums”
- Choose “See or change my Medicare Easy Pay”
It may take up to 4 weeks for changes to take effect.
Why This Matters Now
As the Social Security payments of April 2025 roll out, retiree clients who are still in their early age may be introduced to these deductions for the first time. In case an individual receives a higher benefit from the SSFA and is thus affected, they should carefully review their Medicare premium payments.
If you do not provide updated information to the Medicare office immediately, or you cancel your payments too soon, there is a high chance that your insurance coverage may be terminated unintentionally.
Keep checking ssa.gov and medicare.gov for the latest information on your benefits.
