Watch the full video on how veterans paid into Medicare through FICA: https://youtu.be/3K8ulbGW7dw
By Chris Duncan, Certified Medicare Insurance Planner™ and Retirement Income Certified Professional®
$58,000. At $50,000 a year, that is roughly what a 40-year career paid into Medicare through FICA. Every paycheck. Military service, civilian jobs, it did not matter. FICA came out before you ever saw the money.
And then at 65, Medicare sends you a second bill: $202.90 a month for Part B.
My 82-year-old dad Wallace, a Vietnam era veteran, paid into Medicare through FICA just like you. But Dad is not paying $202.90 a month. Not even close. The reason is one page in the government’s own Medicare handbook: page 11.
Most veterans have never read page 11. By the end of this article, you will know what it says, and you will know which of three veterans you are.
The Deal You Never Agreed To
Remember the FICA box on your pay stubs? If you earned $50,000 a year on average over a 40-year career, about $58,000 went into Medicare through FICA. If you earned more, you paid more. Your military paychecks, your civilian paychecks, every job you ever held. You did not choose to pay it. The government took it and told you it was for Medicare.
That was the deal. Here is the part of the deal they did not tell you about.
At 65, Medicare bills you again. The 2026 standard Part B premium is $202.90 a month. That is $2,435 a year.
If you are drawing Social Security, the $202.90 comes out of your check automatically. The money disappears before you ever see it. If you are not drawing Social Security yet, Medicare sends you a quarterly bill of $608.70, four times a year, for something you already paid for through FICA.
Run the math over a 20-year retirement and Part B costs $48,700. And that assumes the premium never goes up. It goes up almost every year.
$58,000 paid in. $48,700 paid out. You are paying for Medicare twice.
2026 Quick Reference
| Item | 2026 Number |
|---|---|
| Standard Part B premium | $202.90 per month |
| Part B cost per year | $2,435 |
| Part B quarterly bill (if not drawing Social Security) | $608.70 |
| Part B over 20 years (if the premium never goes up) | $48,700 |
| Approximate FICA paid at a $50,000 average salary over 40 years | $58,000 |
What the VA Actually Tells Veterans
I’m Chris Duncan. I have been helping retirees with Medicare and retirement planning since 2006, and our organization focuses on veterans. The most important thing I show every veteran is what the VA itself says, because the VA tells every veteran to get Medicare, and then stops there.
The VA’s own website asks: “If I already have VA health care benefits, should I still sign up for Medicare when I turn 65?”
“Yes. We encourage you to sign up for Medicare as soon as you can.” VA.gov
The VA encourages every veteran to sign up for Medicare, even 100% disabled veterans with full VA health care. The same page notes that funding for VA health care could change in the future, and encourages veterans to sign up for every health care benefit they are eligible for so they have options if they need them.
The VA is telling you to get Medicare. The VA is not telling you about page 11. That is what I’m here for.
What Page 11 Actually Says
Page 11 of the 2026 Medicare & You handbook says this about Medicare Part C plans, also called Medicare Advantage:
“Some plans may have a $0 premium and may help pay all or part of your Part B premium.” 2026 Medicare & You Handbook, Page 11
That is Medicare’s own language. Not my opinion. Not a sales pitch. The government’s own handbook.
Let me break that sentence into its two parts.
First: $0 premium. Medicare Part C plans are allowed to have monthly premiums as low as $0. The right Part C plan for you may cost nothing extra per month to have. One requirement: to be eligible for Part C, you must have Medicare Part A and Part B. You cannot skip Part B and get Part C. Parts A and B are the foundation.
Second, and this is the part most veterans miss: “may help pay all or part of your Part B premium.” Right now, $202.90 comes out of your Social Security benefit every month. If a Part C plan in your county has this benefit, less comes out. Sometimes a lot less. If you are getting a quarterly bill instead, the same thing applies. You pay less.
That is Part C making Medicare work harder for you. Benefits and costs vary by county and plan, and what is available depends on where you live. But page 11 applies to every Medicare beneficiary in the country.
The Gaps Nobody Mentions
Does the VA cover routine dental unless you have a 100% rating? No. Vision or hearing? Sometimes, and most veterans do not have a 100% rating. Original Medicare does not cover routine dental, vision, or hearing. TRICARE for Life does not cover them either. None of them provide a gym membership or an over-the-counter allowance.
Medicare Advantage is allowed to provide benefits that go beyond what the VA, Original Medicare, and TRICARE for Life provide on their own. Not every plan in your area has these. Benefits and costs vary by county and plan. But Part C is allowed to fill gaps the others do not.
Rick Paid Into Medicare Through FICA. He Uses Every Dollar
My friend Rick is a 100% disabled Vietnam veteran I have known for over 20 years. Full VA health care. Full disability compensation. Priority Group 1. Rick paid into Medicare through FICA his entire career, same as every veteran who ever held a job.
Rick decided he was not going to let that money go to waste. He has Medicare. He explored the Medicare Advantage options in his county and found a Part C plan that fills the gaps: coverage for things the VA does not provide and things Original Medicare does not provide.
Rick still goes almost 100% to the VA for his health care. But when the VA has a long wait or denies a procedure, Rick sees doctors outside the VA without asking anyone’s permission. He can walk into any emergency room in the country knowing he is covered.
Rick’s VA benefits did not change. Medicare Advantage is not allowed to affect your VA health benefits. His Medicare and his VA care complement each other.
Dad’s Numbers
Dad called me a couple of years ago. “Chris, they won’t cover it.” He needed a procedure, and the VA said it was not medically necessary. Denied. 82 years old, Vietnam era veteran, and the system he served said no.
Dad did not panic, because Dad’s FICA money did not go to waste. Dad has Medicare too. His Part C plan covered the procedure. No arguments, no appeals, no waiting.
Here are Dad’s numbers. His Part C plan costs $0 per month, and he receives no low-income subsidies. Because of what page 11 describes, $185 of his $202.90 Part B premium is covered every month. Dad pays $17.90 a month for Part B.
Dad is not the only one. The average veteran who goes through our process has $145 of their Part B premium covered. Some have more covered, some have less. It depends entirely on what is available in your county.
IMPORTANT Dad’s $185 is the highest available in his county. That does not mean $185 is available in your county. Every county is different. Every plan is different. The amount is different. That is why we look it up for every veteran individually. Benefits and costs vary by county and plan. Your county will have different plans with different options for your Part B premium.
Dad’s VA benefits did not change. As Dad puts it: “The VA is great, but it ain’t perfect.”
Three Veterans Paid $58,000 Into Medicare Through FICA. Three Outcomes
| Veteran | What They Did | What They Pay for Part B |
|---|---|---|
| Veteran One | Skipped Part B for five years on bad advice. Permanent 50% late enrollment penalty, for life, on top of the premium. When the premium rises, the penalty rises with it. | $304.35 per month |
| Veteran Two | Enrolled on time but never read page 11. Full price every month, money left on the table, and gaps the VA, Original Medicare, and TRICARE for Life do not cover. | $202.90 per month |
| Veteran Three | Enrolled on time. Read page 11. Uses what they paid for, with Medicare Advantage working harder for them and their VA benefits unchanged. | Depends on their county. Dad pays $17.90. |
Same $58,000 paid into Medicare through FICA. Three completely different outcomes. Which veteran are you going to be?
You Paid Into Medicare Through FICA. Use It.
You paid into Medicare through FICA your entire career. The government took it before you ever saw it. At 65 they send you a second bill. Page 11 of the government’s own handbook says options exist.
We do not work for Medicare, the VA, TRICARE, or any of the Part C plans. We are licensed in all 50 states, which means we show you all the options, not what one company wants to sell. Medicare rules allow us to provide all of our services free to veterans. You get the same benefits from your Part C plan whether you work with us or enroll on your own. The difference is expert, veteran-focused guidance at no additional cost to you.
I wrote Medicare for Veterans: The Complete Field Guide. Read it free at freevetsbook.com or grab a copy on Amazon.
Find Out What Your County Offers
Have your ZIP code ready and our team will show you what is available where you live. No cost. No obligation. Not now. Not ever.Schedule My Free Consultation
Or call 888-960-VETS (8387)
You paid $58,000. Use what you paid for.
Prefer to watch? The full video is here: https://youtu.be/3K8ulbGW7dw
Frequently Asked Questions
Will a Medicare Advantage plan change my VA health benefits? No. Medicare Advantage is not allowed to affect your VA health benefits. Your VA care and your Medicare complement each other, and your priority group stays the same. Do I need Part B if I have full VA health care? The VA itself encourages every veteran to sign up for Medicare when eligible, including 100% disabled veterans. And to be eligible for a Part C plan, you must have both Part A and Part B. How much of the Part B premium can be covered? It depends entirely on your county and the plans available there. Some plans may help pay part of the Part B premium and some may help pay all of it, as described on page 11 of the 2026 Medicare & You handbook. The only way to know your number is to look up your county. What does your help cost? Nothing. Medicare rules allow us to provide our services free to veterans, and you get the same plan benefits whether you enroll with us or on your own.
Sources
- 2026 Medicare & You Handbook, Page 11, Centers for Medicare & Medicaid Services
- VA.gov, “VA health care and other insurance”: va.gov/resources/va-health-care-and-other-insurance
Chris Duncan · Certified Medicare Insurance Planner™ · Retirement Income Certified Professional® · Licensed in all 50 states
Veterans Advantage Financial® · We Speak Veteran®
Benefits and costs vary by county and plan. Dad’s situation is based on what is available in his county. Your county will have different plans with different options for your Part B premium.
We do not offer every plan available in your area. Currently we represent multiple organizations which offer numerous products in your area. Please contact Medicare.gov, 1-800-MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options.
I am not affiliated with or endorsed by Social Security, Medicare, the VA, TRICARE, or any government agency. This is general education, not personal advice. Always review your own situation before making changes.