Marilyn – Georgia: Why do they take Medicare out of my payroll check and out of my Social Security check as well? It’s like I’m being charged twice!
Phil Moeller: The money taken from your payroll check is used to fund Part A of Medicare, which covers hospital and nursing home expenses. People who have worked long enough to qualify for Social Security benefits are entitled to Part A without having to pay a premium.
Once a person is on Medicare, the premiums for Part B of Medicare are deducted from their Social Security payments for people who already have claimed Social Security.
It may appear as if you’re paying twice for the same thing, but you’re really not. And while the Part B premiums may seem expensive, they actually cover only a fourth of Part B expenses. The rest come out of general federal revenues every year, to the tune of about $335 billion in 2020.