The Social Security Administration (SSA) has begun reimbursing Medicare premiums to beneficiaries whose payments were previously reduced by the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). This move follows the enforcement of the Social Security Fairness Act, which came into effect in February 2025.
Under the updated law, over 2.9 million retirees saw corrections to their Social Security payments, in some cases receiving retroactive payments of up to $6,000. Many now await confirmation that Medicare premiums will align with these updated benefits.
New Payment Arrangements Follow Benefit Corrections
Since February, the SSA has undertaken a comprehensive review of benefits for individuals affected by WEP and GPO, two provisions that previously reduced Social Security payouts for those receiving pensions from non-covered employment. According to the SSA, 97% of these adjustments have already been completed, directly impacting millions of retirees.
With these recalibrated benefits, the focus has now shifted to Medicare premiums. For those who pay their premiums directly to the Centers for Medicare & Medicaid Services (CMS), no immediate changes are required.
The SSA has stated that once a beneficiary’s record is updated, premiums will automatically be deducted from the revised monthly payment. If the benefit does not fully cover the premium, the outstanding amount will continue to be billed separately.
Reimbursements are also in progress for individuals who prepaid Medicare premiums. According to the SSA, eligible recipients will be notified by post, detailing the exact refund amount and disbursement timeline.
Beneficiaries using Medicare Easy Pay (ACH) are instructed to cancel manual payments once SSA deductions are activated. The relevant form (SF-5510) is available on Medicare.gov.
Duplicated Deductions and Civil Service Considerations
In some cases, retirees previously had their Medicare premiums deducted from Civil Service Retirement System (CSRS) annuities.
According to SSA guidance, those premiums will now be accounted for within the new Social Security payments. The difference will be reimbursed either as part of the retroactive settlement or by the end of the calendar quarter.
Another situation involves duplicate deductions, where premiums were taken both by the SSA and the Office of Personnel Management (OPM).
The SSA has confirmed that these cases are already under review and automatic refunds are being processed through CMS. Affected individuals are advised that no further action is required unless discrepancies arise, in which case they may contact Medicare at 1-800-MEDICARE.
The SSA advises all beneficiaries to ensure their contact and banking details are current, as delays or errors in disbursement could result from outdated records. Official communication from the agency will remain the primary method of notification, with no changes recommended unless prompted by a formal notice.