Who qualifies for an extra $144 added to their Social Security?

The simple answer to the question of who qualifies for an extra $144 added to their Social Security, is individuals who are enrolled in Medicare Part B. There are many nuances attached to being enrolled in Part B Medicare that can change the benefits you receive from the plan. While Medicare B is not an engrained provision on Social Security, when you are enrolled in social security, you are also enrolled in Medicare Parts A and B, which is also known as Original Medicare. To understand how to qualify for an extra $144, it is important to understand what Social Security and Medicare are as programs offered to Americans, how they work, and ultimately how you can receive extra money added to your Social Security check each month.

What is Social Security?

Social Security is a Federal program offered by the United States government since 1935. It is a program that allows Americans to have security through the different stages of life and continue receiving financial security well into advanced years, or namely the years of retirement. The Social Security system is a way to keep Americans from becoming impoverished especially during the most fragile and vulnerable years of their life. 

The system is established by continuously having working citizens paying their share from their taxes into Social Security, thus securing themselves a stable future. To be eligible for Social Security, one must be of a certain age, or have a disability. Social Security offers many benefits such as retirement benefits, auxiliary benefits, survivor benefits, disability benefits, and supplemental support income (SSI). The Social Security Administration (SSA), has many benchmarks that need to be met in order to qualify for the various social security benefits and all must be met with proof and documentation.

The age that most Americans begin receiving Social Security benefits is the age of retirement, which is at 66 or 67 years old, depending on when your date of birth. If you retire earlier, the earliest being 62, you cannot receive 100% of your benefits. If you retire at retirement age, you are eligible to receive the full benefits of Social Security. There are many ways to maximize the amount you receive, and one such pathway is to retire at 70, which allows you to receive a higher percentage of benefits compared to early retirement or regular retirement. 

Medicare and Social Security

So how does Medicare connect with Social Security? In short, Medicare is a part of the Social Security Act, except that it was formed much later in 1965. If you are enrolled in Social Security, you are eligible to enroll in the differing available Medicare plans. When enrolled in Social Security, you are also enrolled in Original Medicare which consists of Medicare Part A and Part B. 

What Is Medicare?

Medicare is a health insurance program that was founded by the federal government of the United States in 195. Its main purpose is to allow those who are 65 and older, also known as senior citizens, to have stable healthcare that is affordable. Medicare is also offered to individuals who have certain disabilities and medical conditions. 

As a nationwide health insurance system, naturally, the program is multifaceted and made of many parts. This means that in order to be considered for Medicare benefits, there are numerous requirements that must be met, just as with receiving Social Security benefits. 

Parts of Medicare

Medicare is made of Medicare A, B, and C. There are combinations of these medicare parts that offer their own specific plans. 

Medicare A is known as hospital insurance. Part A Medicare covered the costs incurred during hospital visits and hospital stays. The expenses covered by Medicare A include hospital visits, nursing care, home health care, hospice care, and other hospital services that are provided inside or outside of the hospital. 

If you and your spouse paid towards medicare through payroll taxes during your years of employment, then typically there is no monthly premium for Medicare A. That said, you are required to have paid for at least 40 quarters to be able to forgo the monthly premium charge. 

Medicare B is best known as medical insurance. This health insurance plan covers the expenses of doctor’s visits and many other procedures typically prescribed by doctors such as blood labs, health tests, outpatient services, preventative healy, and medical equipment costs. 

To receive the benefits of Medicare B, one must pay deductibles and pay a monthly premium. These factors are determined by your income. Whether you are disabled or not, as a senior citizen the monthly premium is a requirement of Medicare Part B. 

Medicare C is also called Medicare Advantage because it goes beyond what is offered in Medicare A or B. This type of plan is set up through a private insurance company. Medicare C, or Medicare Advantage covers the costs of extra health expenses such as dental services, vision and hearing services, prescription drug plans and health club memberships.

To qualify for Medicare C, beneficiaries must first be enrolled in Medicare A or B. In order to enroll in medicare C, you have to cover the cost of Part B premiums alongside paying the private insurance company their own required premiums. 

Medicare D is simply a prescription drug plan that covers the expenses of certain prescription drugs that are prescribed to the beneficiary. There is a list of prescription drugs that are covered by Medicare. If prescribed a drug that is not on that list, then the beneficiary must pay out of pocket.

Original Medicare is Parts A and B, and when enrolled into Social Security, you are also enrolled in medicare A and B. 

Medicare Eligibility and Enrollment

To be eligible for any of the above mentioned medicare plans, you must be 65 years or older, or have a disability or medical condition that is met under Medicare. 

In order to enroll in medicare as a senior citizen, you must be aware of enrollment periods for all of the plans. Enrollment periods are not open on a rolling basis and have certain start and end dates every year. Those wishing to become beneficiaries have to know when the enrollment dates are, and which enrollment applies to there. Enrollment periods consist of initial, general, and special enrollment dates. There are also other enrollment periods that are particularly important to be aware of in order to enroll on time and receive benefits.

So what about $144?

Under the Medicare Advantage program, or Medicare C, there is a rebate program that offers beneficiaries a $144 rebate from Medicare. Of course there are certain qualifiers that need to be met in order to receive this benefit. Once met, beneficiaries can receive a $144 giveback from Medicare each month. This specific benefit of Medicare is called Medicare Part B giveback benefit. 

To be able to receive the $144 monthly rebate, you must be enrolled in Medicare B, hence the name Part B giveback benefit. There is also a requirement that you must also be enrolled in Parts A and B, pay your Medicare B premiums, and be a beneficiary in a Medicare Advantage or part C plan. There are also specific qualifications that must be met based on where you live, and income cap limits that qualify or disqualify you for the $144 giveback benefit. 

If your Medicare Part B premium is deducted from your Social Security, then you will acquire the rebate on your Social Security check. If you are not utilizing Social Security as a means to pay for your medicare premiums, then your rebate will come in the form of paying $144 less each month on what you owe for Medicare. 

Knowing What to Do

The most vital aspect of getting any amount added to your Social Security check, is to recognize the need to understand all of your options when it comes to choosing your personal Medicare plan. As important as exploring all your opinions, it is even more crucial to make the most fiscally appropriate plan for your own personal health and retirement goals in order to have a stable and secure future medically and financially. To maximize the benefits that you may potentially receive, it’s important to stay up to date on enrollment periods and procedures and discuss your options with a medicare specialist. Speaking with a specialist will ensure that you are able to optimize your Social Security benefits to the fullest and receive benefits in any area possible, including the $144 giveback benefit from Medicare.