do i understand right that if i don't have my medicare deducted from my social security when i turn 65, that it will be increased at a different rate then if i do have it deducted. i heard that if the medicare increase is higher than the cost of living for social security, if it is deducted ,the rise would be reduced to match the cola amount. could you explain

Hi,

Most people first become eligible for Medicare at age 65. Part A of Medicare is usually premium free, but you must pay a monthly premium if you elect to enroll in Parts B and D of Medicare. Part B mainly covers outpatient services, while Part D covers prescription drugs.

If you don't enroll in Parts B & D of Medicare when you're first eligible, you can be charged with a higher premium rate if you decide to enroll later. The Part B premium amount increases by 10% for each year that you go without coverage after your first eligibility date, while Part D premiums increase by 1% for each month of non-coverage. However, you can be exempt from the higher premium penalties if you have health insurance through an employer group health plan. For more information, refer to the following Medicare website: https://www.medicare.gov/sign-up-change-plans/how-do-i-get-parts-a-b/par....

Most people who enroll in Part B of Medicare when they are first eligible are charged the standard premium rate, although people with higher incomes sometimes must pay more (https://www.ssa.gov/forms/ssa-44-ext.pdf). If you're paying the standard Part B rate and your premiums are being deducted from your Social Security benefits, and if your premium rate rises more than your Social Security cost of living increase, there is a provision that protects people from receiving a lower benefit payment. In other words, their monthly Part B premium rate can't increase by more than the increase in their monthly Social Security payment (https://secure.ssa.gov/apps10/poms.nsf/lnx/0601001004).

Best, Jerry