Medicare

How the Hold Harmless Provision Protects Your Benefits

November 30, 2020 • By

Last Updated: November 30, 2020

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.


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About the Author

Darlynda Bogle, Assistant Deputy Commissioner

Comments

  1. Sandy

    With so many people out of work due to the “Covid restrictions” how is that going to affect seniors current and future payments?

  2. Debra S.

    For the last 4 years my ssdi cola increase has been eaten up by Medicare premium increases. My ssdi has only increased $6 in the last 5 years. HELP PLEASE.

    • Vonda

      Hi Debra, thanks for using our blog. You may want to apply for Extra Help with Medicare prescription drug plan costs. The Extra Help is estimated to be worth about $5,000 per year. To qualify for the Extra Help, a person must be receiving Medicare, have limited resources and income, and reside in one of the 50 States or the District of Columbia. In addition to the Extra Help, you may be able to get help from your State with other Medicare costs under the Medicare Savings Programs. By completing the Extra Help application, you will start your application process for a Medicare Savings Program. We will send information to your State who will contact you to help you apply for a Medicare Savings Program unless you tell us not to when you complete the application.

      If you need information about Medicare Savings Programs, Medicare Prescription Drug plans or how to enroll in a plan, call 1-800-MEDICARE (TTY 1-877-486-2048) or visit http://www.medicare.gov. You also can request information about how to contact your State Health Insurance Counseling and Assistance Program (SHIP). The SHIP offers help with your Medicare questions. We hope this helps.

  3. Jane k.

    Irmaa is an unfair tax and discriminates

  4. Daniel R.

    Saludos porque mi tarjeta de Medicare es en cartón y no es de plástico

  5. Gary W.

    Is anything being considered to bolster SS? If you already draw SS benefits is there a chance your benefits will be reduced? You hear a lot of different things on fake news these days. Thanks!

    • Vonda

      Hello Gary, thanks for using our blog. Social Security is a pay-as-you-go system. Social Security taxes collected from today’s workers pay the benefits of today’s retirees. Any funds in excess of what is needed to pay today’s benefits are invested in special issue, U.S. Government, interest-bearing securities. This investment –the purchase of U.S. Government securities– is what constitutes the “borrowing” that people are sometimes concerned about. Any funds that have been “borrowed” from the Social Security Trust Funds have always been paid back in full, plus interest.

      Please check out our Trust Fund Frequently Asked Questions page for more information. Thanks!

  6. Jorome T.

    How does the premium for SSA-B get paid back under the Medicare program called Asvantage 2 (HMO) for Federal members, retirees.? Ref: H2172-20-EG-210.

    • Vonda

      Hi Jerome, thanks for using our blog. If you get Social Security, Railroad Retirement Board (RRB) or Civil Service benefits, your Medicare Part B (Medical Insurance) premiums will get deducted from your benefit payment.

      If you don’t get Social Security payments, RRB, or Civil Service benefits, you’ll get a bill called a “Medicare Premium Bill” (CMS-500). Medicare offers four ways to pay your Medicare bill.

  7. Belgesel k.

    Thanks for the information, it was very helpful.

    https://videowebtv.com/belgesel-kanallari.html

  8. Robert P.

    I’m 64 and will be qualified for Medicare in August of 2021. How do I find out if I am qualified for Medicaid as well?

    • Vonda

      Hi Robert, thanks for using our blog. Medicaid is administered by the state. You can get information about services in your area from your state or local social services office. You can also visit the U. S. Department of Health and Human Services (HHS) web page for more information. We hope this information helps.

      Once you’re eligible for Medicare, you may want to apply for Extra Help with Medicare prescription drug plan costs. The Extra Help is estimated to be worth about $5,000 per year. To qualify for the Extra Help, a person must be receiving Medicare, have limited resources and income, and reside in one of the 50 States or the District of Columbia. In addition to the Extra Help, you may be able to get help from your State with other Medicare costs under the Medicare Savings Programs. By completing the Extra Help application, you will start your application process for a Medicare Savings Program. We will send information to your State who will contact you to help you apply for a Medicare Savings Program unless you tell us not to when you complete the application.

  9. Ahmed h.

    How I can apply please

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    Make money on paid surveys.

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    • BETTY G.

      Spammer!

    • Michelle L.

      Is this legit?

Comments are closed.