Surtax Refunds

Because the Medicare Catastrophic Act of 1988 has been repealed, we are told that it is going to cost us $45 million to mail refunds of $26.50 to each of the seniors under Medicare--and the refunds cannot be mailed out until June, 1990 (Part A, Dec. 5).

Why send refunds when six months later we will begin to pay the 1991 increased premium. The premium for 1990 is $28.60 per month (deducted from the Social Security check). For 1991, the monthly premium will be higher (let us assume) by $4 for a new monthly total of $32.60. Why can’t we reduce the 1991 premium by 1/12th of $26.50 or $2.21 monthly--the new premium for 1991 would then be $32.60 minus $2.21, or $30.39.

The result would be that the Social Security Administration does not have to work overtime to issue over 30 million checks; it will not cost the taxpayers $45 million, and the Social Security fund has earned interest on the refunds.

JOSEPH SCHWARTZ

North Hollywood