Upon termination of MSP coverage, a Medicare beneficiary must resume paying their monthly Part B premiums. Part B premiums cost $174.70 per month in 2024 and are typically deducted from the beneficiary’s check. (2025 Medicare premium costs are not yet published, so keep in mind that the cost amounts cited in this alert will increase starting in January). There is often a two-month lag between the date a beneficiary’s MSP benefits end and the date Part B premium deductions resume. Due to this time lag, beneficiaries will owe two months backdated Part B premiums in addition to the current month’s Part B premium. These individuals will have $524.00 automatically deducted from their Social Security checks the first month they begin resuming Medicare Part B premiums. This deduction typically causes significant economic distress for the low-income beneficiary.
Additionally, for individuals not eligible for premium-free Part A, termination of MSP benefits will result in re-instatement of Part A premium costs. Part A premiums for this specific population will cost either $278.00 or $505.00 per month depending on the number of work credit hours the beneficiary has. Part A premiums will not be automatically deducted; the beneficiary will receive a bill in the mail. Advise the beneficiary not to pay the bill, and instead seek out premium relief as outlined below.
Payment Plan Options
Individuals can contact the Social Security Administration and request the following options for premium relief. Please note that beneficiaries can pursue both courses simultaneously.
An Installation Payment Plan. Individuals must attest that they cannot afford the lump sum. The two months of backdated Part B premiums will get refunded and can be paid back with an installment plan. Payments can be arranged to be as low as 15.00 a month. SSA - POMS: HI 00830.060 - Installment Payments for Retroactive Premiums - 01/11/2017.
Should these options not be available due to specific circumstances, beneficiaries can consider utilizing a Special Enrollment Period to enroll in a Medicare Advantage plan, and/ or consider enrolling in an AABD Medicaid Spenddown. Beneficiaries also have the option of enrolling in a Medigap plan if that is affordable to them. Beneficiaries can contact an Illinois SHIP counselor at (800) 252-8966 to learn more about their coverage options.
Please review the CMS resource for further details. Further questions about the process can be directed to modernizethemsps@cms.hhs.gov, or you can contact Avisery at avisery@ageoptions.org for assistance.
Avisery by AgeOptions provides tools and support to professionals serving older adults and people with disabilities, enabling them to help their clients access healthcare coverage that allows them to thrive as they age. Contact us at avisery@ageoptions.org or 708-628-3440.
AgeOptions, 1048 Lake Street, Suite 300, Oak Park,IL,60301,United States,(800) 699-9043
