How Do Social Security and Medicare Work Together?

Key takeaways

• Understand Social Security and Medicare roles in retirement income and health care coverage.
• Learn how Medicare enrollment relates to Social Security benefits and timing rules.
• Discover how Social Security simplifies Medicare payments through benefit deductions.

Summary

Social Security and Medicare work together to support financial stability and health care coverage as you age. Social Security provides income for retirees, people with disabilities and certain families, while Medicare offers health insurance for those 65 and older or with qualifying conditions. Understanding how these programs connect helps you plan effectively for retirement.

The coordination between Social Security and Medicare mainly affects enrollment and payment. Social Security may automatically enroll you in Medicare if you are already receiving benefits at age 65. It can also deduct Medicare premiums directly from your monthly payments, making it easier to manage health care costs alongside retirement income.

The key takeaways and summary were created with the assistance of generative AI. An AARP editor reviewed and refined the content for accuracy and clarity.

Full transcript

[0:00:00] Hi, I’m Mary Liz Burns from AARP,

[0:00:03] and I often get questions about programs that help support us as we age.

[0:00:07] There are many,

[0:00:08] but Social Security and Medicare are the biggest and most important.

[0:00:12] Social Security provides financial support in retirement.

[0:00:16] Medicare provides health care.

[0:00:18] They’re distinct and offer very different services, but they work together in some important ways to help older Americans.

[0:00:25] So how do Social Security and Medicare

[0:00:28] work together?

[0:00:31] Let’s start with the basics.

[0:00:33] Social Security provides income for people who are retired

[0:00:36] or can’t work due to a severe medical condition.

[0:00:39] It also provides income for families that lost a loved one.

[0:00:42] We have a separate video on survivor benefits linked

[0:00:46] in the description below if you need more information.

[0:00:49] Medicare provides health insurance for those 65 and older,

[0:00:53] or for people with certain disabilities or illnesses.

[0:00:56] Social Security and Medicare cooperate in many important ways that impact you.

[0:01:01] I’m going to focus on two of them:

[0:01:03] signing up for Medicare and paying for it.

[0:01:06] Let’s start with enrolling in Medicare.

[0:01:09] The Social Security Administration, or SSA for short,

[0:01:13] works with the federal Centers for Medicare & Medicaid Services,

[0:01:17] usually shortened to CMS, to help older Americans get started with Medicare.

[0:01:22] How? SSA will send you an enrollment package

[0:01:25] typically by the start of your Medicare enrollment period,

[0:01:28] which begins three months before the month you turn age 65.

[0:01:33] That’s really important to know.

[0:01:35] So, for example,

[0:01:38] if your birthday is on July 15,

[0:01:41] your enrollment period begins on April 1.

[0:01:42] Now, if you’re already getting Social Security benefits when you reach age

[0:01:45] 65, SSA will automatically enroll you in the core parts of Medicare.

[0:01:51] But what if you’re 65 and aren’t yet getting Social Security benefits?

[0:01:56] Well, you’ll need to apply for Medicare yourself, and you can do that

[0:02:00] at the Social Security website, ssa.gov.

[0:02:04] Now that we have covered enrollment,

[0:02:08] here’s where the payments begin.

[0:02:08] Once you’re enrolled, you’ll most likely pay monthly premiums

[0:02:11] for Medicare Part B, which covers outpatient treatments like doctor’s appointments. Social Security makes

[0:02:18] that simple, too.

[0:02:19] If you are drawing benefits, Part B premiums

[0:02:22] typically are deducted directly from your Social Security payments.

[0:02:27] If you have a Medicare Advantage plan or a Part D prescription drug plan,

[0:02:31] you can pay those premiums out of your Social Security benefits, too,

[0:02:35] but it’s not automatic.

[0:02:36] You’ll need to set up the deduction with your Advantage or Part D plan provider.

[0:02:41] If you aren’t yet getting Social Security,

[0:02:43] Medicare will bill you directly for Part B coverage.

[0:02:47] You can pay online or by mail.

[0:02:49] These examples show how Social Security and Medicare work together to try to make things a little easier for you.

[0:02:56] Check out aarp.org/socialsecurity for more information.

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[0:03:05] so you won’t miss out on future videos like this from AARP.