Dear Larry,

Why am I penalized on Medicare Part B for filing and suspending? I filed and suspended without a hitch just before my 67th birthday (I'm 68 now). Then the new law produced what I understand, after several calls to Social Security, would have reduced my payment back to $104 (plus a few cents) from $121 (plus a few cents) in my social security check. Problem, which the staff at Social Security seems unable to grasp, is that when filing & suspending, I do not receive a social security check. Consequently, as I see it, I'm paying since the law took effect 6-7% more for Medicare premiums because I do not receive a social security check. That is cutting into the benefit of suspending payments until age 70. I've been promised a call-back for months to resolve this issue -- none received. People in my situation seem to be discriminated against due to the accounting "fix" that was meant to keep Medicare Part B at $104. That intent of the law hasn't been implemented for my situation. [Aside--I've appreciated you columns and am a software customer of yours].

Thanks for your help, Ed

Dear Ed,

Yes, Medicare holds recipients of Social Security benefits harmless from Medicare Part B premium increases. This means that a Social Security benefit recipient can not experience a rise in her Part B premium that exceeds the increase in her Social Security benefit (due to the system's annual COLA). Since you aren't receiving Social Security benefits, you can't be held harmless.

Is this fair? Absolutely not. But there are so many unfair elements in Social Security and Medicare that we should, as I discuss at www.kotlikoff2016.com, retire both systems and set up new compulsory saving and health insurance systems.

best, Larry