Q: According to your newsletter, there’s a law that protects Social Security benefits from reduction when the amount of the Medicare Part B premium increase is more than the amount of our annual Cost-Of-Living Adjustment (COLA). I have not had an increase in my benefits for three years because the COLA was used up by the Medicare premium increase. This year, my benefit was reduced. What recourse do I have? I am a Notch Baby as well as a widow.
A: TSCL is hearing from a number of you who say you received a lower Social Security benefit in 2005 than in 2004 after the deduction for the Medicare premium. Sec. 1839 (f) of the Social Security Act is a little-known provision of law that protects your Social Security benefit from reduction when the Medicare premium increase is greater than your COLA. The provision applies to seniors who have the Medicare Part B premium automatically deducted from their Social Security check.
Although I am not a legal expert, it appears that the provision DOES NOT extend to persons who are affected by Medicare Part B delayed enrollment penalties. Although your email did not state that you are affected by this problem, a significant number of comments we are receiving are from beneficiaries who delayed enrolling in Medicare, and thus must pay significantly higher premiums (see “Delayed Medicare Enrollment Could Cost You Big” on page 4). Many of our readers say they were never told about the penalty until they enrolled, or they were told incorrect information. I recently contacted the Centers for Medicare and Medicaid Services to confirm how the law protects benefits and how those who are affected by the Medicare Part B delayed enrollment penalty are affected but have received no clarification as of press time.
Compounding the problem, I am finding that in the majority of my calls, customer service agents at the Social Security and Medicare 800 numbers have never heard of the law that protects Social Security benefits from reduction. I did learn that seniors who believe their benefit in 2005 may have been improperly reduced by the increase in Medicare Part B premium should contact their local Social Security office. I suggest that you keep a copy of this article with the legal citation — Sec. 1839 (f) of the Social Security Act — close by the phone. I would also suggest that you check and see how much is being deducted for your Medicare Part B premium. If more than $78.20 per month is deducted, then I suspect you may be affected by the Medicare Part B delayed enrollment penalty.
We are continuing to work with CMS to get more information and continuing our survey to determine the extent of the problem.
