Medicare collects most premiums monthly, usually by deducting them from your Social Security check
If you receive Social Security, Medicare Part B and Part D premiums come out of your monthly benefit automatically — you do not have to do anything to set this up. The deduction happens on the same day you receive your Social Security payment. If you do not receive Social Security, or if your premiums are higher than your benefit, Medicare bills you directly by mail, and you pay by check, money order, or online through your Medicare account.
Part A (hospital insurance) has no monthly premium for most people — you paid for it through payroll taxes while working. Part B (doctor visits and outpatient care) and Part D (prescription drugs) both charge monthly premiums that vary by income and the plan you choose. Supplemental insurance (Medigap) and Medicare Advantage plans set their own premium schedules, which may differ from the standard Medicare collection dates.
Key Takeaways
- Social Security recipients have Part B and Part D premiums deducted automatically on their payment date each month.
- If you do not get Social Security, Medicare sends you a bill by mail, and you can pay by check, money order, or online.
- Part A has no monthly premium for most people; Part B and Part D premiums vary based on your income and the plan you select.
- Supplemental insurance and Medicare Advantage plans collect premiums on their own schedules, separate from standard Medicare deductions.
- Premium amounts can change each year, and you will receive a notice in the mail before any increase takes effect.
How Social Security deduction works
When you sign up for Medicare Part B while receiving Social Security, Medicare coordinates with the Social Security Administration to deduct your premiums automatically. The deduction happens once per month on the same date you normally receive your Social Security deposit. This method is called "direct debit" or "automatic deduction," and it is the most common way Medicare collects premiums.
You can see the deduction on your Social Security statement each month. If you want to change how you pay or stop the automatic deduction, you can contact Social Security at 1-800-772-1213 or visit your local Social Security office. Keep in mind that if you stop the deduction, you become responsible for paying Medicare directly by mail or online, and missing payments can result in a late enrollment penalty.
Direct billing if you do not receive Social Security
If you do not receive a Social Security check — for example, if you are still working and have not claimed benefits yet — Medicare sends you a bill by mail each month. The bill shows your Part B premium, Part D premium (if you have prescription drug coverage), and any other amounts you owe. You can pay by mailing a check or money order, or you can set up online payment through your Medicare account at Medicare.gov.
Online payment is faster and reduces the risk of missed payments. To set up an account on Medicare.gov, you will need your Medicare card number and a valid email address. Once logged in, you can view your bills, make one-time payments, or set up automatic monthly payments from your bank account. If you prefer to pay by phone, you can call 1-800-MEDICARE (1-800-633-4227) and speak with a representative who can process your payment over the phone.
When premiums increase and how you are notified
Medicare Part B and Part D premiums change each year, usually effective January 1st. The Centers for Medicare & Medicaid Services (CMS) announces the new premium amounts in the fall, typically in October or November. If your premium is going up, you will receive a notice in the mail at least 30 days before the increase takes effect.
The notice explains the new premium amount, the reason for the increase, and your options if you want to change your coverage. For Social Security recipients, the increased deduction will straightforward appear in your next January payment. If you receive a direct bill, your January bill will show the new amount. Some people may have access to for Extra Help, a program that pays Part D premiums for people with limited income — if your income changes, you may become newly may be able to access and should contact your local Social Security office to reapply.
Late enrollment penalties and missed payments
If you do not pay your Medicare premium on time, you may face a late enrollment penalty — an extra amount added to your premium for as long as you have Medicare. For Part B, the penalty is typically 10 percent of the standard premium for each 12-month period you went without coverage. For Part D, the penalty is calculated based on the national average premium and the number of months you were without coverage.
If you miss a payment by accident, contact Medicare right away at 1-800-MEDICARE. If your payment is only a few days late, you may be able to avoid a penalty by paying when ready. If you are having trouble affording your premiums, ask about programs like Medicaid (which may cover your Part B premium), the Medicare Savings Program, or Extra Help for Part D costs. These programs are run by your state, and you can find contact information through your local Social Security office or by calling 1-800-MEDICARE.
Supplemental insurance and Medicare Advantage premium schedules
If you have a Medigap (supplemental) policy or a Medicare Advantage plan, those premiums are collected separately from your Part B and Part D premiums. Medigap policies are sold by private insurance companies, and each company sets its own payment schedule — some bill monthly, some quarterly, and some annually. Your Medigap bill comes directly from the insurance company, not from Medicare.
Medicare Advantage plans also bill separately. Some plans include the premium in your Social Security deduction (along with your Part B premium), while others bill you directly. When you enroll in a Medicare Advantage plan, the plan sends you information about how and when to pay. If you switch plans during the annual enrollment period (October 15 to December 7), your new plan's premium schedule takes effect on January 1st of the following year.
What to do if you cannot find or access your bill
If you do not receive a bill in the mail and you do not have Social Security deduction set up, contact Medicare when ready. You may have a billing address on file that is outdated, or there may be a problem with your account. Call 1-800-MEDICARE to verify your address and request a replacement bill.
You can also create or log into your Medicare account at Medicare.gov to see your billing history and current premium amounts. If you have a Medicare Advantage or Medigap plan, log into your insurance company's website or call the customer service number on your insurance card to check your billing status. Staying on top of your bills prevents missed payments and protects you from late enrollment penalties.
Frequently Asked Questions
What day of the month does Medicare take my Social Security deduction?
Medicare deducts your premiums on the same day you receive your Social Security payment each month. Social Security payment dates vary based on your birth date: people born on the 1st to the 10th are paid on the second Wednesday, those born on the 11th to the 20th on the third Wednesday, and those born on the 21st to the 31st on the fourth Wednesday. Your Medicare deduction happens on that same date.
Can I change how I pay my Medicare premiums?
Yes. If you currently have Social Security deduction, you can switch to direct billing by contacting Social Security at 1-800-772-1213. If you receive a direct bill, you can set up automatic bank account payments through Medicare.gov or by calling 1-800-MEDICARE. You can also pay by check, money order, or phone, though automatic payment is the most reliable method.
What happens if I miss a Medicare premium payment?
If you miss a payment, contact Medicare right away at 1-800-MEDICARE. Depending on how late the payment is, you may still avoid a penalty by paying when ready. If a penalty is assessed, it will be added to your premium for as long as you have Medicare. You can also ask about programs that help pay premiums, such as the Medicare Savings Program or Medicaid.
Do I have to pay for Part A?
Most people do not pay a monthly premium for Part A because they paid for it through payroll taxes while working. However, if you do not have 40 quarters of work history, you may have to pay a premium for Part A. Your Medicare card will show whether you have a Part A premium. If you do, it is collected the same way as Part B — through Social Security deduction or direct billing.
When do Medicare Advantage plan premiums come out?
Medicare Advantage premiums are collected on different schedules depending on the plan. Some plans include the premium in your Social Security deduction (on your regular payment date), while others bill you separately by mail or require online payment. Check your plan documents or call your plan's customer service number to find out your specific payment date.