Dear Rusty: I’m 72 years old with 20 years of military service. I am retired collecting Social Security, my military pension, and State retirement benefits. According to my SSA statement, over my working lifetime I paid $14,302 into Medicare, but I never used that medical plan. I only bring in $33,000 in annual income. Can I get those Medicare taxes back somehow? I’ve run into dead ends at SSA, Medicare and IRS websites. Signed: Veteran Seeking Answers
Dear Veteran Seeking Answers: First, I want to thank you for your military service to our country. You may find the “For Veterans” section of our www.amacfoundation.org website of interest.
Regarding the contributions you have made over the years to federal Medicare, I’m afraid you cannot get any of those taxes back even though you have never used Medicare healthcare services. That’s because Medicare, like Social Security, is a “pay as you go” program where all contributions received from workers are used to pay for benefits for current beneficiaries (contributions aren’t put into a separate account to pay for your coverage). It’s also important to know that your Medicare taxes were used only to fund Medicare Part A, which is coverage for inpatient hospitalization services. Those contributions (via payroll taxes) did not entitle you to outpatient healthcare services, as provided by Medicare Part B (for which there is a monthly premium).
FYI, you must be enrolled in Medicare Part A to collect Social Security benefits after age 65. Medicare Part B isn’t mandatory to collect Social Security, but assuming that, as a retired military veteran, you now receive healthcare benefits under the military’s TriCare-for-Life program for retired veterans, you must be enrolled in Medicare Part A and Part B to maintain your TriCare-for-Life coverage. Your military TriCare coverage coordinates with Medicare to pay for your healthcare costs. Thus, even though it may not be transparent to you, you may be benefiting from your current enrollment in Medicare.
Note that some non-career veterans can use VA healthcare services based on their service years, instead of TriCare-for-Life for retired military veterans. Non-career recipients of standard VA healthcare services are not required to be enrolled in Medicare but, in any case, cannot receive their past Medicare Part A contributions back if they choose to decline Medicare. You may have interest in this article I previously published on the topic of VA benefits versus Medicare: www.socialsecurityreport.org/ask-rusty-i-have-va-coverage-should-i-get-medicare-part-b/.
Russell Gloor is an Association of Mature American Citizens certified social security advisor. To submit a question, visit amacfoundation.org/programs/social-security-advisory or email ssadvisor@amacfoundation.org.
