4) Pension Supplement for Health Insurance Premiums - Excess Reimbursement

The customer receives $297.00 from his pension every month as reimbursement for Medicare premiums for himself and his spouse. Social Security deducts Medicare premiums of $148.50 from each spouse’s gross SSA benefit.

The customer's half of the reimbursement is not counted as income. The customer does not receive a SOC deduction for Medicare expenses because the pension reimburses his cost.

Because his wife pays her own Medicare premium, the wife's half of the reimbursement ($148.50) is counted unearned income to the customer. When AHCCCS begins paying the customer’s Medicare Part B premium, the entire $297.00 will be counted unearned income to the customer.