Senior Hit With Lifetime Medicare Penalty Forced to Go Back to Work

A 78-year-old woman has told Newsweek that she's been forced back to work after having her health care costs skyrocket upon returning to the United States.

Cynthia Colyer of Hamilton, Montana, left the U.S. and moved to Australia more than 30 years ago to be with her husband, an Australian native. When her Social Security benefits kicked in, she didn't think to take out Part B Medicare since Australia had a national health plan.

However, when Colyer moved back to America in 2022 to take care of her father, she found herself paying a significantly higher premium for health care coverage because she declined to pay for Part B when she turned 65.

Colyer now works as a deli clerk to afford the Part B insurance, which covers doctors' visits and tests, for her and her husband. The price has soared to nearly $700 monthly after Colyer initially opted out of Part B coverage while in Australia.

"I am 78 years old and really would like to enjoy my last years," she told Newsweek. "However, we need health insurance."

Colyer added that because she has to work more than 30 hours a week to cover Part B, she rarely sees her family. She is also on her feet for up to nine hours a day and worries about the health implications if she's forced to keep working.

"My health is deteriorating, and I feel anxious and resentful," she said. "I cannot afford to quit if I keep Part B."

Colyer warned other seniors living abroad that they should pay for Part B when they turn 65 to avoid the penalty. Her conundrum is what she calls a "catch 22" as she faces higher costs on nearly everything in America, she said.

"Things are much more expensive, so Social Security doesn't go very far," she said. "I feel that paying so much for health care on top of paying through wages is a bit much. There is no reduction when still working and having Medicare taken out of wages."

Newsweek reached out to the Centers for Medicare and Medicaid Services for comment via email.

Other Medicare Problems

Medicare coverage has seen a host of other complaints by seniors, whether they're on traditional Medicare or privatized Medicare Advantage plans.

In a recent KFF Survey of Consumer Experiences with Health Insurance, only 79 percent of those under 65 with disabilities gave their Medicare coverage a positive rating, compared to 92 percent of those over age 65.

There have also been several changes to Medicare and Medicaid proposed by lawmakers hoping to ease the health care process for beneficiaries.

Republican Senators Bill Cassidy of Louisiana, John Cornyn of Texas and Tim Scott of South Carolina, along with Democrat Senators Tom Carper of Delaware, Mark Warner of Virginia and Bob Menendez of New Jersey proposed the Delivering Unified Access to Lifesaving Services (DUALS) Act of 2024. The law would integrate Medicare and Medicaid for dual eligibles, which they say would therefore improve health outcomes and make health care spending more efficient.

Dual eligibles make up only 19 percent of Medicare enrollees, but account for 34 percent of spending. Meanwhile, in Medicaid, dual eligibles make up 14 percent of enrollees, but contribute 30 percent of the spending.

"Patients dually eligible for Medicare and Medicaid have much worse outcomes than other groups even though there is a lot more money spent on their care," Cassidy said in a statement. "Making Medicare and Medicaid better work together makes patients healthier and saves money for taxpayers."

If you've faced a penalty on your Medicare and would like to share your story, please reach out to personalfinance@newsweek.com.