The main ways to pay Medicare Part B

You can pay your Medicare Part B premium through automatic deduction from your bank account, Social Security check, or Railroad Retirement Board payment. Most people choose automatic deduction because it is the simplest — Medicare takes the payment each month without you having to remember. If you prefer to pay by check or money order, you can mail it directly to Medicare. Some people also pay through their state Medicaid program if they are covered by both Medicare and Medicaid.

The amount you pay depends on your income. If you earned more in the past two years, you may pay a higher premium called an Income-Related Monthly Adjustment Amount (IRMAA). Medicare sends you a letter each year telling you exactly what your premium will be.

Key Takeaways

  • Automatic deduction from your bank account, Social Security check, or Railroad Retirement Board payment is the easiest payment method and requires a one-time setup.
  • You can also mail a check or money order to Medicare if you prefer not to set up automatic payments.
  • Your premium amount is based on your income from two years ago, and Medicare will notify you if it changes.
  • If you cannot afford your premium, you may be able to get help through your state Medicaid program or a Medicare Savings Program.

Setting up automatic deduction from your bank account

To have Medicare deduct your premium directly from your checking or savings account, you will need to contact Medicare and provide your bank account information. You can do this by calling Medicare at 1-800-MEDICARE (1-800-633-4227), visiting Medicare.gov, or using the Medicare mobile app. Medicare will ask for your account number and routing number — the same information you would give to set up any automatic payment.

Once your automatic deduction is set up, Medicare takes the payment on the same day each month. This method works even if you move or change banks, as long as you update your information with Medicare. If your bank account closes or changes, contact Medicare right away so the payment does not fail.

Automatic deduction from Social Security or Railroad Retirement

If you receive Social Security or Railroad Retirement Board payments, you can have Medicare deduct your Part B premium directly from that payment each month. This is often the most common method because the money is already coming to you — Medicare straightforward takes its share before you receive the rest.

To set this up, call 1-800-MEDICARE or visit Medicare.gov. You do not need to provide bank details; Medicare coordinates directly with Social Security or the Railroad Retirement Board. The deduction happens automatically on the same day you normally receive your payment.

Paying by mail with a check or money order

If you do not want automatic payments, you can mail a check or money order to Medicare each month. Make the check payable to "United States Department of Health and Human Services" and include your Medicare number on the check. Mail it to the address Medicare provides in your premium notice — this address may vary depending on where you live.

Paying by mail takes longer than automatic deduction, so your payment may arrive after the due date if you mail it close to the important date. If your payment is late, Medicare may suspend your coverage temporarily. To avoid this, mail your payment at least one week before the due date shown on your notice.

What to do if you cannot afford your premium

If your Part B premium is too high, you may be able to get help through a Medicare Savings Program, which is run by your state. These programs help pay your Medicare premiums, deductibles, and copayments if your income is low enough. Each state sets its own income limits, so what qualifies in one state may not in another.

To learn about you are may be able to access for a Medicare Savings Program in your state, contact your state Medicaid office or call 1-800-MEDICARE. You can also visit Medicare.gov and search for "Medicare Savings Programs" to find your state's program and contact information. If you are already on Medicaid, your state may be able to help you pay your Part B premium automatically.

Understanding your premium amount and changes

Your Part B premium is based on your income from two years before the current year. For example, your 2024 premium is based on your 2022 income. If your income was higher two years ago, you will pay more now. If your income drops significantly — such as after retirement or a job loss — you can ask Medicare to recalculate your premium based on your current income.

Medicare sends you a notice each year in October or November telling you what your premium will be for the next year. If the amount changes, the notice explains why. Keep this notice for your records. If you disagree with the amount, you have a window of time to request a review, which the notice will explain.

What happens if you miss a payment

If you miss a Part B premium payment, Medicare will send you a notice asking you to pay. You usually have a grace period to catch up without losing your coverage. However, if you do not pay within the grace period, Medicare may disenroll you from Part B, and you will have to wait until the next enrollment period to sign up again.

If you are having trouble making a payment, contact Medicare right away. Explain your situation — if you are facing a temporary hardship, Medicare may work with you on a payment plan or help you find resources. It is better to call before you miss a payment than to wait until your coverage is at risk.

Frequently Asked Questions

Can I change my payment method after I set it up?

Yes. You can switch between automatic deduction from your bank account, Social Security, or Railroad Retirement payment at any time. Call 1-800-MEDICARE or log into your Medicare account online to make the change. The new method usually starts the following month.

What if I want to pay my premium all at once instead of monthly?

Medicare does not offer a lump-sum payment option for Part B premiums. You must pay monthly. However, if you set up automatic deduction, you do not have to think about it — the payment happens on its own each month.

Do I pay Part B if I am still working and have employer health insurance?

Yes, you still pay Part B premiums even if you have employer coverage. However, you may be able to delay enrolling in Part B without a penalty if your employer insurance is considered creditable coverage. Talk to your employer's benefits office and contact Medicare to understand your options before your coverage ends.

What if my income changes and I think my premium is too high?

You can request that Medicare recalculate your premium based on your current income if you have had a major life change such as retirement, job loss, or death of a spouse. Contact Medicare and ask about a Life-Changing Event appeal. You will need to provide proof of the change, such as a tax return or letter from your employer.

Is there a penalty if I pay late?

If you pay after the due date, you may face a late enrollment penalty if you did not have a valid reason for the delay. The penalty is added to your premium for as long as you have Part B. To avoid this, set up automatic payments so you never miss a due date.