Dealing with Double Medicare Billing After Starting Social Security Benefits

I have a client who began her benefits in September, with her first check being this month. Prior to receiving SS benefits, she was paying for Medicare via check. She paid for her November benefits this month but received her statement from Social Security and they are withholding Medicare payments in the October check she received. Will that be double counting for October or November? Is there a way to apply for a refund from Medicare for the she wrote that double count with the Social Security withholdings or will it even out in another way?

Your client’s situation is not uncommon when transitioning from paying Medicare premiums directly to having them deducted from Social Security benefits. Here’s what typically happens and how she can resolve the issue:

1. Understanding the Double Billing:

   • Transition to Social Security: When a person begins receiving Social Security benefits, their Medicare premiums are automatically deducted from their monthly Social Security payments. If your client was previously paying Medicare premiums directly via check and then began receiving Social Security benefits in September, it’s possible that the transition caused an overlap, resulting in double billing.
   • Double Billing for October: Since her Medicare premium was deducted from her October Social Security payment and she also paid for November’s premium by check, this could result in what appears to be double billing for the same coverage period. Essentially, she might have paid for the same month twice—once by check and once through her Social Security benefit deduction.

2. How the Refund Process Works:

   • Automatic Refund: Typically, the Social Security Administration (SSA) will identify the double billing and automatically issue a refund for the overpayment. This refund is usually processed and sent to the beneficiary, but it can take some time.
   • Timeline for Refund: In the past, the refund process could take around 60 days, but processing times can vary. If your client prefers not to wait, she has the option to expedite the process.

3. Requesting a Refund:

   • Contacting SSA: Your client can contact the SSA directly to request a refund. She can either call the SSA’s toll-free number (1-800-772-1213) or visit her local Social Security office to speak with a representative in person. It’s important for her to explain the situation and provide any documentation showing the double payment.
   • Visiting a Local Office: If she prefers a more hands-on approach, visiting a local SSA office might help expedite the refund process. Bringing copies of her Medicare payment receipts and her Social Security statement will help the SSA representative process her request more efficiently.

4. Resolution of the Double Payment:

   • Automatic Adjustment: In some cases, if the SSA does not issue a refund right away, they may apply the overpayment to future Medicare premiums, effectively “evening out” the payments over time. However, if your client wants the overpayment refunded directly, she should request it specifically.
   • Monitoring Payments: It’s advisable for your client to monitor her Social Security statements and bank account over the next couple of months to ensure the refund is processed and received.

In summary, if your client has been double-billed for her Medicare premiums, the SSA will typically issue a refund. However, the process can take some time. If she prefers not to wait, visiting her local SSA office to request the refund might expedite the process. It’s a good idea for her to keep an eye on her Social Security and Medicare statements to ensure the situation is resolved.

The content on this blog is for informational purposes only and is not legal, financial, or professional advice. Social Security rules change periodically, so some information may become outdated. For the most accurate advice, consult a certified National Social Security Advisor (NSSA®). Social Security Professionals, LLC, and NSSA® are not responsible for any errors, omissions, or actions taken based on this blog's content. Use of this blog does not create a client relationship, and all information is provided "as is" without guarantees. By using this blog, you agree to hold Social Security Professionals, LLC, and NSSA® harmless from any claims or liabilities arising from its content. For personalized guidance, contact an NSSA® professional.