Social Security + Medicare: How to Maximize Both Benefits Together

Social Security and Medicare are the two biggest benefits most Americans earn over a lifetime of working. But here's the thing -- they're deeply connected, and the decisions you make about one can directly affect the other. When you start Social Security, how much you earn in retirement, and which Medicare plan you choose all play into how much you actually take home each month. Let's walk through how to get the most out of both.

How Social Security and Medicare Work Together

• Both programs are funded through payroll taxes (FICA) during your working years
• You become eligible for both at age 65, though Social Security can start as early as 62
• Medicare Part B and Part D premiums are typically deducted directly from your Social Security check
• Your Social Security income level can affect how much you pay for Medicare (through IRMAA)
• Coordinating both programs wisely can save you hundreds or even thousands per year

When to Start Social Security vs. When to Start Medicare

• Medicare eligibility begins at 65 -- and you should generally enroll on time to avoid late penalties
• Social Security can start at 62 (reduced), full retirement age (66-67), or be delayed until 70 (increased)
• Delaying Social Security increases your monthly benefit by about 8% per year until age 70
• You can enroll in Medicare at 65 even if you delay Social Security
• If you delay Social Security past 65, you'll need to sign up for Medicare separately (it won't be automatic)

How Medicare Premiums Are Deducted from Social Security

• Most beneficiaries have their Part B premium automatically deducted from their Social Security check
• Part D premiums can also be deducted from Social Security if you set it up
• If you're not yet receiving Social Security, you'll be billed directly for Medicare premiums
• The "hold harmless" provision protects most people from Part B increases that exceed their Social Security COLA raise

Extra Help and Low-Income Subsidy (LIS)

• The Extra Help program pays for most Medicare Part D prescription drug costs
• You may qualify if your income is below $22,590 (individual) or $30,660 (couple) in 2026
• Extra Help can save you an average of $5,000+ per year on drug costs
• You can apply through Social Security (SSA.gov) or your state Medicaid office
• Many people who qualify don't know it -- it's one of the most underused benefits available

IRMAA: Income-Related Monthly Adjustment Amounts

• If your modified adjusted gross income exceeds certain thresholds, you'll pay higher Medicare premiums
• IRMAA surcharges apply to both Part B and Part D
• The income used is from your tax return two years prior (so 2024 income affects 2026 premiums)
• You can appeal IRMAA if you've had a life-changing event (retirement, divorce, death of spouse)
• Strategic income planning (Roth conversions, timing of withdrawals) can help you avoid IRMAA brackets

Strategies to Maximize Both Benefits

• Delay Social Security to 70 if possible for maximum monthly income
• Enroll in Medicare at 65 regardless of your Social Security start date
• Check if you qualify for Extra Help -- even partial assistance adds up
• Be strategic about retirement income to stay below IRMAA thresholds
• Review your Medicare plan annually during Open Enrollment to minimize premiums and out-of-pocket costs
• Work with a licensed advisor who understands how both programs interact

Need Help?

Figuring out the best timing for Social Security and Medicare is one of the most important financial decisions you'll make in retirement. At Insuras Health Benefits, we help you see the full picture and choose the Medicare plan that works with your Social Security strategy -- not against it.

Contact us for a free consultation -- let's make sure you're getting every dollar you've earned.