SSA is ready for a big change. More than 2.8 Social Security beneficiaries will have their premiums automatically deducted from their Social Security benefits.
This change is for all those people who are affected by the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).
The Social Security Administration (SSA) has designed this to streamline the payment process. It will also reduce financial confusion for older Americans who are more severely impacted by these long-standing rules.
Earlier, these people paid Medicare premiums separately. It was because they were excluded from regular Social Security payouts. However, due to the Social Security Fairness Act, the SSA will deduct the premium amount automatically to simplify the process. This act was signed into law by President Joe Biden in 2024. It will ultimately be useful to millions of beneficiaries.
With the Fairness Act, many beneficiaries are also now eligible for refunds. Earlier they were not in the refund list as they paid Medicaid premium out of pocket. These changes will primarily benefit former public servants.
President Biden officially signs the bipartisan Social Security Fairness Act into law.
It boosts payments for current and former public employees, affecting nearly 3 million people who receive pensions from their time as teachers, firefighters, police officers, & other public… pic.twitter.com/FXQTO4E6Ra
— Art Candee 🍿🥤 (@ArtCandee) January 5, 2025
This list includes teachers, police officers, and firefighters. Many of these people have already begun receiving retroactive Social Security checks. The first check came as early as February 2025.
However, this transition isn’t one-size-fits-all. There are almost 72% of state and local government workers who already pay into Social Security. Therefore, they weren’t affected by WEP and GPO. The SSA will notify individuals who were impacted when their records have been updated.
Once Social Security benefits for an individual, the monthly Medicare premium will be deducted directly. However if the premium is more than the benefit, they will have to pay the rest of the amount manually.
CMS is rolling out an enhanced and accelerated Medicare Advantage contract auditing strategy to catch any cases of fraud, waste or abuse that have been hiding in the program for far too long. We are actively reviewing claims to ensure the government is being accurately billed for… pic.twitter.com/c12F1tWsTi
— DrOzCMS (@DrOzCMS) May 21, 2025
SSA has urged retirees who prepaid their premiums to the Centers for Medicare & Medicaid Services (CMS) to continue their payments until they receive an official notice. If the SSA later on starts payment through Social Security deductions, those affected by this will receive a refund of the overlap amount.
Many people use Automated Clearing House (ACH) services. These include Medicare Easy Pay. Others pay their bill online through their bank. They must make necessary changes to avoid double payments.
The SSA recommends that beneficiaries who use ACH should complete the Authorization Agreement for Preauthorized Payments (Form SF-5510). This can then be submitted to the address listed on the form. They can also submit the form electronically via Medicare.gov.
Individuals using online bill pay through their bank should contact their bank directly to stop payments.
Biden: They [Trump’s administration] fired 7,000 SSA employees. They cut the tech team in half. The website crashes. Seniors can’t even file claims.
Some were wrongly told their benefits had ended. 5/ pic.twitter.com/jl9qv9Zqsx
— Tymofiy Mylovanov (@Mylovanov) April 16, 2025
The SSA is currently dealing with over 900,000 complex cases that require manual review. Due to this backlog, beneficiaries may experience delays in updates. This will especially happen when reporting changes such as new addresses or bank accounts.
SSA workers were instructed to prioritize Fairness Act cases beginning in May 2025. SSA is now under the leadership of Commissioner Frank Bisignano. He aims to update all affected beneficiary records by November 2025.
The Congressional Budget Office also claimed that the end of WEP alone could raise monthly benefits by an average of $360 by December 2025.
