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If you receive benefits from Social Security, Railroad Retirement Board (RRB), or Office of Personnel Management (OPM), then your Part B premium will be deducted from your benefit payment. It will come out of your check every month starting with your Part B effective month.
What If You Don’t Receive A Social Security Benefit Check?
If you don’t receive any of these benefits mentioned above, then you will get a Medicare Premium Bill in the mail. You’ll receive a quarterly bill with a payment coupon. If you don’t want to pay 3 months at a time, you can call Medicare and request to pay monthly.
How To Pay Your Medicare Premiums
There are a few ways to make payments.
- You can sign up for a My Medicare.gov account and pay online by credit or debit card.
- You can sign up for Medicare Easy Pay. They will deduct premium payments from your checking or savings account every month.
- You can pay from your checking or savings account by using your bank’s online bill pay service.
If your first payment is late, then you’ll get another bill. If you miss the second bill payment due date then you get a delinquent bill. And if you miss that delinquent due date then you’ll lose your Medicare coverage.
What You Need To Do Next
If you have your Medicare Part B premium automatically deducted from your benefits check, you don’t have to do anything else. Just make sure to check you’re paying the correct amount.
If that’s not your situation, then you’ll get a bill or you can set up how you want to
pay for your Medicare. If you need help with this then give us a call at
Medicare Advantage premiums and Social Security benefits
Medicare Advantage, also known as Medicare Part C, is a type of insurance provided by private insurance companies that contract with Medicare. Private insurance companies manage the plans but have to work within guidelines provided by the federal government. They are only available to people who are eligible for Original Medicare.
Medicare Advantage premiums vary in price just like other private insurance plans. This means that there is no way to say how much you will pay without getting a quote.
To have your Medicare Advantage monthly premium deducted from your Social Security benefit, you have to contact the Social Security Administration. Otherwise, you will have to pay the premium directly to your insurance company.
How much is taken out for Part D drug plans?
Medicare Part D plans help pay for prescription drug costs. This coverage is not included with Original Medicare (Medicare Parts A and B). However, some Medicare Advantage plans also provide drug coverage. If you join a Medicare Advantage Prescription Drug plan (MA-PD), you cannot also join a standalone Part D plan.
As with Medicare Advantage plans, Part D plans are sold by private insurance companies. This means that their costs will vary, just like Part C plans. However, you may also owe the Income-Related Monthly Adjustment Amount for your Part D plan. The IRMAA table above includes the Part D surcharge at each income bracket.
This amount, as well as your premium itself, can be deducted from your Social Security benefit. Contact the Social Security Administration to set this up.
Key things to remember about Social Security and Medicare
For most people, finding out how much will be taken out of your Social Security check is very easy. If you have Original Medicare and collect retirement benefits, then the process is automatic. The amount deducted is your monthly Part B premium ($170.10 or higher in 2022). You likely won't have to pay the Part A premium if you qualify for retirement benefits.
The main thing to remember is that the process is not automatic if you have a Medicare Advantage or a Part D plan. You will have to call the Social Security Administration to arrange to have your premiums deducted from your monthly benefit. Make sure to check each month after you initiate the process since implementation is sometimes delayed.
Additional resources
- Medicare.gov: Your Medicare Costs
- ClearMatch Medicare: How Medicare Premiums Are Paid