Resolving Delayed Widow’s Benefits and Medicare Premium Adjustments

My client, Jan, retired March, 2022.  She was born 9/1956.  She earned $118k Jan-March, 2022.  She is a widow and planned to collect on her husband’s benefit until she turns 70 and will collect on her own benefit.  She met with Social Security last March and was told she was approved for her husband’s benefit and that it would begin last May.  After the meeting, she received a letter stating the payments would actually begin in June because they were withholding the April payment due in May for Medicare premiums. She had another meeting in July because she had not received a payment and they advised that due to her earnings and the timeframe she took Medicare part B she owed back payments.  She applied for Part B while still working, in November, 2021.  At this time, she was told she would receive her first check in August.  They also mentioned on more than one occasion that the payment center needed to switch her from deferred to active status and that was the reason for the delay. On an October call, she was told her Medicare premiums were now overpaid and they owed her money.  She did pay her Medicare premiums out of pocket for Oct-December, 2022. She has filed an SSA-44 for both 2022 and 2023 (she has no income this year other than Social Security). In early January, 2023, she was told that because of her last 2 years of income her part B premium would be $527.50 and they will review it again in December, 2023. She finally did receive a check at the end of January, and they withheld $597.50 for Medicare premiums. The SSA website now says her next payment will have the $527.50 withheld. In January she was told on a call that she is owed a back payment for part B and D but no one can tell her the amount or when she will receive this. Can you help me sort out why her payments began so late and how can she determine the amount she is owed for back Medicare premiums?  Shouldn’t her 2022 premiums have been reduced to due to her lower earnings as well as her 2023 premiums since she filed SSA-44? 

Given your client Jan’s situation, there are several factors at play that may have caused the delays and confusion with her Social Security benefits and Medicare premiums.

First, regarding the delayed widow's benefits: Assuming Jan was eligible to start receiving her widow's benefits in April 2022, her earnings from January to March 2022 ($118,000) may have triggered the Annual Earnings Test. This could have led to a withholding of benefits if she earned more than the earnings limit for the year. However, since she retired in March, she should have been able to use the monthly earnings test, which would have allowed her to receive benefits for the months following her retirement, starting in April.

The delay in switching her from deferred to active status likely contributed to the late start of her payments. This administrative oversight may have compounded the issue, leading to her first payment being delayed until January 2023.

As for the Medicare premiums, the higher premiums were initially based on her income from two years prior (2020) due to the Income-Related Monthly Adjustment Amount (IRMAA). However, since she experienced a life-changing event (retirement), she should have filed Form SSA-44 to request a reduction in her Medicare premiums for both 2022 and 2023 based on her lower income. It appears that the SSA has processed her SSA-44 for 2023, as indicated by the adjusted premium of $527.50, but the back payment for overpaid premiums in 2022 has yet to be addressed.

To resolve this, Jan should request a detailed printout from the SSA that outlines the following:

1. Benefit Payments: A monthly breakdown of what she was paid and what she should have been paid, including any withheld benefits.

2. Medicare Premiums: The specific income figures used to calculate her Medicare premiums for 2022 and 2023 to ensure they reflect her current income situation.

If the SSA does not provide a satisfactory explanation or resolution, it would be advisable to contact her local Congressional representative’s office for assistance. They can often expedite the resolution of issues with federal agencies like the SSA.

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