The latest edition of the Curran Connection will review the Social Security Premium Withhold (SSA PWH) option. Please pay close attention to the 4th bullet point below. I have run into this a few times and have received questions on this situation with a member who has PACE or PACENET.
Social Security Premium Withhold is a payment option available to some members. This option will automatically deduct their monthly plan premium from their Social Security check. Members who choose this option will not receive a monthly invoice from us
Not all members qualify to use SSA PWH, including the following:
- SSA PWH isn't a choice for group members. The plan sponsor chooses their premium payment options.
- Without Social Security Benefits
- With only Medicare Part B, but not Medicare Part D
- With a premium with PACE and PACENET – Pennsylvania
- With a zero-dollar premium unless the member has a Late Enrollment Penalty (LEP)
- With de minimis and premiums under $2.00
If a member chooses SSA PWH and are currently enrolled to have their premium deducted electronically (EFT) the funds will continue to be drafted (EFT) until the SSA PWH takes effect. The normal time to take effect is anywhere from 30 to 90 days from the date of the member’s request.
Members will receive a letter from Social Security letting them know if the request is approved. The letter will have the effective date of the premium withhold, the premium amount that will be deducted each month, and the new total of their SS check that they receive each month after the deduction.
