Ask the Experts: How Suspending Social Security Benefits Affects Medicare

Q. I am age 67 and collecting Social Security benefits. Can I suspend my payments until I’m age 70? What about Medicare?

A. Since you’ve reached full retirement age, you can suspend your Social Security payments and continue to earn retirement credits until age 70. If you decide to do this, you do not have to withdraw your Medicare coverage.

If you do want to withdraw your Medicare coverage when you suspend your Social Security payments, you should be aware that there are several ramifications for the various parts of Medicare: A, B, C and D.

Part A

If you withdraw from Medicare Part A coverage (hospital), you must repay all Medicare Part A benefits paid on your behalf.

Part B

If you withdraw from Part B coverage (doctors’ and outpatient fees), you will have coverage for the month you requested the withdrawal and the month after. If you file later for Social Security benefits and Medicare, your Part B premiums may be higher because of your late or interrupted enrollment.

Part B premiums are paid out of SS checks. Therefore, if you want to keep your Medicare coverage, including Part B, you will be billed by the Centers for Medicare & Medicaid Services for future Part B premiums. Make sure you pay that bill promptly so you don’t risk losing your Part B coverage.

Part C

If you are enrolled in Medicare Part C (a Medicare Advantage plan) and you withdraw from Medicare Part A, Part B or both, your enrollment in your Advantage plan will automatically end.

Part D

If you withdraw from Medicare Part A and Part B, you will no longer be eligible for Part D (prescription drug coverage). If you keep Part A or Part B, you are still eligible for Medicare Part D.

If you are not enrolled in a Medicare Part D plan and you do not have prescription coverage that’s as good as Medicare prescription drug coverage, you will pay a penalty if you enroll in a Medicare prescription drug plan in the future.

To learn more, go to the SSA’s website.

Carole Fleck is a senior editor for the AARP Bulletin.