Medicare Part B premiums are usually taken directly from your Social Security check each month

If you are already receiving Social Security when you turn 65, Medicare Part B payments come out automatically before you see your check. The amount varies based on your income from two years ago — the Social Security Administration uses your tax return from that year to set your premium. Most people pay the standard amount, but if your income was higher, you may pay more through a process called Income-Related Monthly Adjustment Amount (IRMAA).

If you are not yet on Social Security, or if you delay Social Security past 65, you will receive a bill from Medicare directly. You can pay by mail, phone, or online through your Medicare account. The payment is due by the 25th of the month for coverage to start on the 1st.

Key Takeaways

  • Social Security automatically deducts your Part B premium each month if you receive Social Security benefits.
  • If you do not receive Social Security, Medicare sends you a bill that you pay directly by mail, phone, or online.
  • Your premium amount depends on your income from two years prior, and higher earners pay more through IRMAA.
  • You can request a different payment method or change how you pay by contacting Social Security or Medicare.
  • If you miss a payment, you have a grace period, but late enrollment penalties may explore if you do not pay within three months.

When Social Security pays your Part B premium automatically

Social Security handles the payment for most people. Once your Part B coverage begins, the monthly premium is deducted from your Social Security payment before the money reaches your bank account or mailbox. You do not have to do anything — it happens automatically each month.

The amount taken out appears on your Social Security statement. If you receive a paper check, you will see the deduction listed. If you have direct deposit, the reduced amount goes into your account. This method means you cannot forget to pay, and there is no risk of late fees.

Paying Part B directly if you are not on Social Security

If you have not started Social Security, or if you chose to delay it past age 65, Medicare sends you a bill each month. This bill arrives by mail or through your online Medicare account, depending on how you set it up. The payment is due by the 25th of each month.

You have three ways to pay: mail a check to the address on the bill, call 1-800-MEDICARE to pay by phone, or log into your Medicare account at Medicare.gov to pay online with a bank account or debit card. Online payment is the fastest and gives you a confirmation number when ready.

How income affects what you pay

Your Part B premium is not the same for everyone. Medicare looks at your income from two years before the current year. If your income was above a certain threshold, you pay a higher premium called IRMAA. For 2024, the thresholds start at $97,000 for single filers and $194,000 for married couples filing jointly, but these amounts change each year.

If your income was high two years ago but has dropped since then — because you retired, had a major loss, or your spouse passed away — you can ask Medicare to recalculate your premium. This is called a Life-Changing Event. You will need to send proof, such as a recent tax return or a letter from your employer showing reduced income. Contact Social Security or Medicare to request this review.

Changing how you pay

If you want to stop automatic deduction from Social Security and pay Medicare directly instead, you can request that change. Call Social Security at 1-800-772-1213 and ask to have your Part B premium removed from your check. Medicare will then send you a bill each month.

You can also switch from paying by mail to online, or set up automatic bank withdrawals if you are paying directly to Medicare. Log into your Medicare account or call 1-800-MEDICARE to make these changes. Any change you request usually takes effect the following month.

What happens if you miss a payment

If your Social Security deduction fails because of a bank error or other problem, Social Security will try again the next month. If you are paying Medicare directly and miss the important date, you have a grace period of about three months to catch up without losing coverage. However, if you do not pay within three months, your Part B coverage will end.

If your coverage ends because of non-payment, you can restart it, but you may face a late enrollment penalty. This penalty adds a percentage to your monthly premium for as long as you have Part B. The penalty is 10 percent for each full year you were without Part B and could have had it. To avoid this, pay any overdue amount as soon as you realize you missed it.

Understanding your Medicare bill or statement

If you receive a paper bill, it shows your name, Medicare number, the amount due, and the due date. If you pay through Social Security, your statement shows the deduction under "Medicare premiums." Your online Medicare account displays the same information and lets you see payment history going back several months.

Keep your bills or print your online statements for your records. If you ever need to prove you paid on time, or if there is a dispute about a payment, these documents are your proof. You can also call 1-800-MEDICARE to ask for a payment history or to verify that a payment was received.

Frequently Asked Questions

Can I pay my Part B premium in a lump sum instead of monthly?

No, Medicare Part B premiums must be paid monthly. You cannot pay for several months at once or pay annually. However, if you owe back premiums, you can arrange a payment plan with Medicare by calling 1-800-MEDICARE.

What if my income drops significantly after I retire?

You can request that Medicare recalculate your IRMAA based on your current income. You will need to report a Life-Changing Event such as retirement, job loss, or death of a spouse. Send proof to Social Security or Medicare, and they will review your case within 30 to 60 days.

Does my spouse have to pay the same Part B premium as me?

No, each person's premium is based on their own income from two years prior. Even if you are married and file taxes jointly, Medicare calculates each spouse's IRMAA separately based on their individual income.

What if I move to another state — does my payment method change?

No, your payment method stays the same. If Social Security was deducting your premium, it continues to do so. If you were paying Medicare directly, you continue to receive bills. Your address will update in the system, and bills will go to your new address.

Can I set up automatic payments if I am paying Medicare directly?

Yes, you can set up automatic bank withdrawals through your Medicare account at Medicare.gov or by calling 1-800-MEDICARE. This ensures your payment is made on time each month without you having to remember the due date.