Tuesday, December 1, 2020

How the Hold Harmless Provision Protects Your Benefits

November 30, 2020 • By 

How-the-Hold-Harmless-Provision-Protects-Your-Benefits

Social Security works together with the Centers for Medicare & Medicaid Services to make sure you won’t have a reduction in your Social Security benefits as a result of Medicare Part B premium increases.

A special rule called the “hold harmless provision” protects your Social Security benefit payment from decreasing due to an increase in the Medicare Part B premium. The Part B base premium for 2021 is $148.50, which is $3.90 higher than the 2020 base premium.

Most people with Medicare will pay the new premium amount because the increase in their benefit amount will cover the increase. However, a small number of people will see little or no increase in their Part B premium — and their Social Security benefit checks will remain the same — because the amount of their cost-of-living adjustment isn’t large enough to cover the increase.

To qualify for the hold harmless provision, you must:

  • Receive Social Security benefits or be entitled to Social Security benefits for November and December of the current year.
  • Have your Medicare Part B premiums for December and January deducted from your monthly benefits.

There are exceptions:

The hold harmless provision does NOT apply to you if:

  • You enroll in Part B for the first time in 2021.
  • You pay an income-related monthly adjustment amount premium.
  • You are dually eligible for Medicaid and have your premium paid by a state Medicaid agency.

You can learn more by visiting Medicare.

https://blog.ssa.gov/how-the-hold-harmless-provision-protects-your-benefits/?utm_medium=email&utm_source=govdelivery

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