Medicare Medical (Part B) premium varies with income

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Medicare Medical (Part B) coverage helps pay for doctors’ services and outpatient care along with other services.  

Most people incorrectly think that the costs of providing Medicare Part B coverage are covered by the monthly Part B premium. 

Since its start, the Medicare Part B premium has been highly subsidized. The standard Part B premium paid by most people covers only about 25 percent of actual coverage cost, with the government paying the remaining 75 percent. In 2013, the standard Medicare Part B premium is $104.90 per month. 

Since 2007, a small percentage of higher income beneficiaries have paid a higher monthly Part B premium. This affects less than 5 percent of people with Medicare. Most people do not pay a higher premium. Higher Medicare Part B premiums start for individuals having a modified adjusted gross income (MAGI) above $85,000 or couples above $170,000. 

Using an income-based sliding scale based on the amount of modified adjusted gross income reported to the IRS, these premiums could equal 35, 50, 65 or 80 percent of the total premium cost. Increased monthly premiums can be appealed. In addition, if you pay an increased premium and your income has gone down because of the following reasons, an increased premium can be reviewed without an appeal. These reasons are:

  • You married, divorced, or became widowed;
  • You or your spouse stopped working or reduced your work hours;
  • You or your spouse lost income-producing property due to a disaster or other event beyond your control;
  • You or your spouse experienced a scheduled cessation, termination, or reorganization of an employer’s pension plan; or
  • You or your spouse received a settlement from an employer or former employer because of the employer’s closure, bankruptcy, or reorganization.

If any of the above applies, you will be asked for documentation verifying the event and the reduction in your income.

Higher-income beneficiaries with Medicare prescription drug coverage (Part D) also pay higher premiums.  

 More information is in the booklet “Medicare Premiums: Rules for Higher-Income Beneficiaries, online at www.socialsecurity.gov/pubs/10536.html.

General  Medicare information is at http://www.socialsecurity.gov/pgm/medicare.htm and at the official Medicare website, http://www.medicare.gov/.

 

Popular baby names for each state available

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Did you check to see how popular your name is?

Last week the Social Security Administration announced the most popular baby names nationally for 2012. For years after 1879 you can learn the national popularity of a given name by percentage of births or actual number of times used. Go to http://www.socialsecurity.gov/OACT/babynames/.

Today the 100 most popular names by individual state were revealed based on a 100 percent sample of Social Security number card applications. 

While having fun with baby names on www.socialsecurity.gov, consider creating your own my Social Security account to access your personal Social Security Statement and other services.

Shown here are the top ten male and female names nationally, and for North Dakota, Minnesota and South Dakota. For any state, go to http://www.socialsecurity.gov/OACT/babynames/state/index.html. 

 

 

 

 Smartphone Reminder:

Since early May, when visiting the Social Security Administration website, www.socialsecurity.gov, via smartphone (Android, Blackberry, iPhone, and Windows devices) you are redirected to the agency’s new mobile-friendly site. There you can access a mobile version of Social Security’s Frequently Asked Questions, an interactive Social Security number (SSN) decision tree to help identify documents needed for a new/replacement SSN card, and mobile publications which you can listen to in both English and Spanish.

When plans change – work after retirement and your Social Security

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What if you retire, start collecting Social Security retirement, and then your plans change with a return to work? Using the following question, this is today’s topic.

Q: I started Social Security retirement at age 62, received benefits for over a year, then returned to work with high enough earnings to stop my SSA benefits due to the annual earnings test. I am ready to stop working again and restart my retirement. Will my Social Security amount be higher now because I am older? I am age 65 with a full retirement age of 66.

A: You have two issues here. One will eventually result in a higher retirement amount and the other might do so. Your monthly amount was reduced when you began Social Security retirement at age 62 because you were younger than full retirement age (FRA). While retirement amounts increase with cost-of-living adjustments and other changes, just getting older is not cause for increase and does not increase benefits already started. Considering just age, your retirement benefits will initially resume as they were when you first started them.

However, when a person electing reduced benefits reaches full retirement age (FRA), Social Security automatically reviews their record to see if there are months for which they had a reduction but did not actually receive a payment. If so, you get credit for those months, thus increasing your amount. This fits your situation since you had months without benefit payment due to your return to work. This automatic review takes place when you reach FRA. Effective then, benefits will increase by the number of months that your return to work prevented payment.

 A related issue is that new earnings can potentially increase benefits. Social Security retirement is computed using your best 35 earnings years. If new earnings are higher than a previous year used, they could increase your retirement amount. Also automatic, this earnings review takes place each year and can increase benefits whether you are younger or older than full retirement age.

See Social Security publication “How Work Affects Your Benefits” for more information.

When retirement plans change, sometimes a person can withdraw his or her Social Security application and then re-apply at a future date. Doing this requires repayment of all benefits received by you and any family members through the application. However, if you change your mind 12 months or more after becoming entitled to retirement benefits, you cannot withdraw your application. Withdrawing the retirement application was not an option for this person because he or she had already received Social Security for over a year before returning to work.

Did You Know?  Recorded in April 2013, a 28-minute webinar titled How Social Security Can Help You Plan for Retirement is now on the SSA website. Topics include your retirement amount, full retirement age, family benefits, retirement considerations and more. To watch, go to www.socialsecurity.gov and then to the new Social Media Hub at lower right.

How popular is your name?

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Annually near Mother’s Day, Social Security publishes the most popular baby names in the United States for the previous year. Based on Social Security number applications, learn the popular baby names for 2012 at the SSA website, www.socialsecurity.gov. Follow the baby names link at Popular Services.

Nationally for 2012, the five most popular female names are Sophia, Emma, Isabella, Olivia and Ava with the most popular male names being Jacob, Mason, Ethan, Noah and William. 

Jacob and Sophia are repeat champions as America’s most popular baby names for 2012. This is the fourteenth year in a row Jacob tops the list for boys and the second year for Sophia. When visiting the baby names pages, also learn about Social Security benefits for children. 

Learn the most popular names in each State and see how the popularity of a given name changes over time. Popular names by State for births in 2012 will be available here on May 16. In the meantime, you can view the popular names for previous years.

When visiting the baby names pages, also learn about Social Security benefits for children.

How popular is your name? Go to www.socialsecurity.gov and find out.

Replace a Medicare card online & other webcasts

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National Social Security webinars are at the SSA homepage, www.socialsecurity.gov . From there, go to the Social Media Hub in the lower right corner. Clicking on the persons image at right or on “more social media” brings you to webinars, including one recorded in April about retirement planning.

Adding to the national webinars, you can watch webcasts through the SSA Denver Region site. The Social Security Administration includes ten regions. Denver Region, where I am, directly serves residents of Colorado, Montana, North Dakota, South Dakota, Wyoming, Utah, western Minnesota and three Canadian provinces.

Brand new on the Denver Region site is How to Replace Your Medicare Card Online. Just short of six minutes in length, it contains a brief Medicare introduction, shows how to replace your Medicare card online, and mentions my Social Security.

Replacing your Medicare card is just one of the many online Social Security services available at no charge, whether or not you receive monthly benefits.

 Recorded last November, the Social Security Denver Region webcast Social Security Frequently Asked Questions is still available.

In approximately 20 minutes, the webinar discusses Social Security retirement, survivors and disability program topics, how benefit amounts are determined for individuals and spouses, how to replace a Social Security card, and more. 

So that you can easily find information for yourself, the webinar also highlights the Frequently Asked Questions (FAQs) area of the Social Security website, www.socialsecurity.gov. 

 

 

What is Medicare Part D Extra Help?

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Q: What is Medicare Part D Extra Help?

A: Part of the Medicare prescription drug (Part D) program, the Extra Help low income subsidy can help pay for parts of Part D monthly premiums, annual deductibles and co-payments. If on Medicare, people receiving Supplemental Security Income (SSI) or medical assistance are automatically eligible for Extra Help. Estimated to be worth about $4,000 per year, you must be enrolled in a Medicare prescription drug plan to receive this Extra Help.

To apply, you must have Medicare Part A (Hospital Insurance) and/or Medicare Part B (Medical Insurance) and live in one of the 50 States or the District of Columbia. Applications can be completed at any time of the year. An easy way to apply for the Extra Help is through Social Security  online at www.socialsecurity.gov/prescriptionhelp/.

To qualify for the Extra Help, people must be receiving Medicare and have income limited to $17,235 for an individual or $23,265 for a married couple living together. Even if annual income is higher than these amounts, some help might still be possible if you support other family members who live with you, have earnings from work or live in Alaska or Hawaii. Resources are limited to $13,300 for an individual or $26,580 for a married couple living together. Resources include things such as bank accounts, stocks, and bonds but not your house or car.

Learn more or apply for Extra Help at www.socialsecurity.gov/prescriptionhelp/, by calling the SSA national number, 1-800-772-1213 (TTY 1-800-325-0778) or at your local office.

Applying for the Part D, prescription drug Extra Help low income subsidy does not enroll a person in a Medicare prescription drug plan. Social Security personnel cannot provide help you choose a prescription drug plan. More about Medicare prescription drug plans is at www.medicare.gov or call 1-800-MEDICARE (1-800-633-4227; TTY 1-877-486-2048).

Social Security & your smartphone

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Social Security Announces New Mobile Site for
Smartphone Users

Agency Leverages Technology to Meet Customer Service Expectations

Carolyn W. Colvin, Acting Commissioner of Social Security, today announced the agency is offering a new mobile optimized website, specifically aimed at smartphone users across the country. People visiting the agency’s website, www.socialsecurity.gov, via smartphone (Android, Blackberry, iPhone, and Windows devices) will be redirected to the agency’s new mobile-friendly site. Once there, visitors can access a mobile version of Social Security’s Frequently Asked Questions, an interactive Social Security number (SSN) decision tree to help people identify documents needed for a new/replacement SSN card, and mobile publications which they can listen to in both English and Spanish right on their phone.

“We are committed to meeting the changing needs of the American people and the launch of our new mobile site helps reinforce our online presence and adaptability to advances in technology,” Acting Commissioner Colvin said. “I encourage all smartphone users looking for Social Security information to take advantage of our new mobile site.”

In addition, visitors to the new mobile site can learn how to create a personal my Social Security account to get an online Social Security Statement, learn more about Social Security’s award-winning online services, and connect with Social Security on Facebook, Twitter, YouTube, and Pinterest. For people unable to complete their Social Security business online or over the telephone, the agency also unveiled a new mobile field office locator. The new mobile office locator has the capability to provide turn-by-turn directions to the nearest Social Security office based on information entered by the person.

“With significant budget cuts of nearly a billion dollars each year over the last few years, we must continue to leverage technology and find more innovative ways to meet the evolving needs of the American public without compromising service,” said Acting Commissioner Colvin.

Each year, more than 35 million Social Security web page views come via smartphones. 

For more information, please go to www.socialsecurity.gov.

You can own a home and receive SSI

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Q:  Can a person who owns a house and car receive Supplemental Security Income?

A:  Yes, depending on the details.

Supplemental Security Income (SSI) is a low-income program for people at least age 65, and disabled or blind adults or children. Resource limits exist for SSI, with resources defined as items you own or can convert to cash including bank accounts, property and vehicles. There are income limits also. SSI is a very different program from Social Security, although people apply for it at Social Security.

Not everything you own counts as a resource. If you live in it, your home including the land it is on, generally is not counted toward resource levels. If you own the home but do not live in it, both home and land will probably count as resources. One vehicle usually does not count as a resource either. 

Maximum SSI monthly amounts in 2013 are $710 for an eligible individual and $1,066 for an eligible couple, reduced by other income including Social Security benefits. Resource maximums are $2,000 for an individual and $3,000 for a couple. Subject to the SSI income limits, people can receive both SSI and Social Security benefits because they are two different programs. 

As with a home or vehicle, other resources might not count towards SSI resource levels. Most household goods, some insurance and some burial funds usually are not included.

Not all income counts for SSI either. For example, portions of wage and self-employment income, pensions, and State or local assistance based on need are not counted. 

SSI information is at http://www.socialsecurity.gov/pgm/ssi.htm and in SSA publication 05-11000, Supplemental Security Income.

To apply for SSI or ask questions, contact Social Security. Call the national toll-free number, 1-800-772-1213 (TTY 1-800-325-0778) or contact your local SSA office.

Benefits to a wife or husband (spousal benefits)

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An overheard office conversation reminded me that I have not written about spousal benefits in a while. A man wanted to know why his wife could not receive Social Security benefits through his record. Key to his thinking was that her own Social Security retirement amount was less than one-half of his, a very popular misconception.  

Like many misconceptions, there is a historical basis for this. In the early days of Social Security often only the husband was employed, with the wife busy but unemployed at home. In addition, no one could begin monthly retirements before full retirement age because early retirement (age reduced) benefits did not exist yet. Now, both wife and husband are often employed and reduced retirement benefits can begin as young as age 62, with full retirement ages ranging from 65 to 67 under existing law.

Social Security benefits are gender neutral. Both men and women can receive spousal (wife/husband) benefits and each must be alive for spousal benefits to apply. Survivors benefits to a widow or widower are computed differently and might be payable even if a spousal benefit was not. 

Returning to spousal benefits, the one-half idea has some validity but it refers to a comparison of the wife and husband’s individual full retirement age (FRA) amounts, not the monthly amount that either is actually receiving.   

The most that a spouse with lower career earnings could receive through the record of her or his higher earning spouse is one-half of the higher earners full retirement age amount. This is a maximum and reduced by their own Social Security retirement and by age, if younger than FRA. 

To learn if spousal benefits are possible, compare one-half the higher full retirement age (FRA) amount to the lower FRA amount.    

For example, leaving aside the actual monthly benefit amount, say we have a couple where one person has a FRA amount of $2,000 and the other has a FRA amount of $900. 

Half of the higher $2,000 FRA amount is $1,000. Since the other person’s smaller $900 FRA amount is less than this $1,000 (one-half of the higher) amount, a spousal benefit is possible. If the smaller FRA amount were $1,000 or more, and therefore not less than half of the higher, spousal benefits would not be paid.

Note that this only shows IF a spousal benefit is possible, not how much. How much a spousal benefit is depends on the person’s own Social Security retirement amount and their age. In this example, the MOST a spousal benefit could be is $100 per month, derived by subtracting the lower FRA amount of $900 from one-half the higher ($1,000) FRA amount. Potentially reduced for age, the net spousal amount is added to his or her own monthly retirement amount. 

Using the same full retirement age amounts, but with age reduced benefits involved, you can see how the one-half of benefit misconception, rather than the FRA comparison, can lead you astray.

Using the same couple, one person has a full retirement age (FRA) amount of $2,000 and the other has a FRA amount of $900.

However, now the person with the $2,000 FRA amount started retirement at age 62 (with age 66 FRA), giving him or her a benefit reduction of about 25 percent, resulting in a monthly amount of about $1,500.

The person with the FRA amount of $900 waited until full retirement age before starting Social Security. Since he or she waited until FRA, there is no age reduction and the full FRA monthly amount of $900 is received.  

Comparing the actual benefit amounts of $1,500 and $900, one-half of the higher is $1,500 divided by 2 = $750. Given that the overall smaller benefit amount of $900 is more than one-half the higher $1,500, you would wrongly conclude that spousal benefits are not payable. 

The Social Security website, www.socialsecurity.gov, has information to help plan your retirement planning.

Use the Retirement Estimator to estimates your personal full retirement age amount. Learn your full retirement age and obtain approximate monthly reduction percentages at http://www.socialsecurity.gov/retire2/agereduction.htm.

ID questions when creating your “my Social Security” account

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Q: Some of the security questions when I created a my Social Security account took me by surprise. While I expected the often seen birthdate type of question, my Social Security questions involved more details than I expected Social Security to have about me. Where do the questions come from?

A: This question was asked during one of my retirement seminars. Before answering it, I think it is important to mention that the Social Security Administration has less personal information then many people think. If not receiving monthly benefits, the bulk of personal information held by Social Security about you is from your Social Security number (SSN) application as updated, and your work history. If receiving benefits, the agency has information that you provided and needed to pay those benefits, including your address and direct deposit bank account information. 

Maintaining the security of your personal information on Social Security records is very important to the agency, which brings us back to the  question.  

Anyone at least age 18 and having an email address can create their own online my Social Security account. To create an account, you must provide some personal information about yourself and give us answers to some questions that only you are likely to know. Next, you create a username and password that you will use to access your online account. This process protects you and keeps your personal Social Security information private.

Some of the personal information requested is your name, Social Security number and birthdate. For other questions, an external authentication service provider, Experian, helps Social Security verify your identity by using information from your Experian credit report. This can result in what is known as a “soft inquiry” on your Experian credit report but does not affect credit scores and is not reported to lenders. It does provide the ability to protect your personal information by asking questions that only you should be able to answer.   

Please note that you cannot create a my Social Security account online if you have a security freeze, fraud alert, or both on your Experian credit report. You first must ask Experian to remove the freeze or alert. 

A link to my Social Security is on the homepage of www.socialsecurity.gov or you can go directly to http://www.socialsecurity.gov/myaccount/.  Linked from that page are details explaining how your identity is verified and protected.