What Gets Deducted From Your Social Security for Medicare

Medicare Part B and Part D premiums are taken directly from your Social Security payment each month. The amount varies by income and the specific coverage you choose. For 2024, the standard Part B premium is $164.90 per month, though higher earners pay more. Part D premiums depend on which prescription drug plan you pick and range widely — some plans cost $7 per month, others $100 or more.

The deduction happens automatically once you turn 65 and enroll in Medicare Part B. You do not see the money leave your bank account separately; it straightforward reduces the Social Security deposit you receive. If you have not yet claimed Social Security when you turn 65, Medicare premiums are billed to you directly by mail instead.

Part A (hospital insurance) has no monthly premium for most people, so nothing is deducted for it. However, if you or your spouse did not work long enough to may have access to for premium-free Part A, you pay a monthly premium — up to $505 per month in 2024 — and this also comes from Social Security if you are receiving it.

Key Takeaways

  • Part B premiums are deducted from your Social Security check automatically, with the standard amount at $164.90 per month in 2024, but higher earners pay more based on their income from two years prior.
  • Part D prescription drug premiums vary by plan and are also deducted from Social Security, ranging from under $10 to over $100 monthly depending on your choice.
  • The amount deducted can change each year, and you receive a notice in the mail showing your new premium before it takes effect.
  • If you delay claiming Social Security past 65, you will receive a bill in the mail for Medicare premiums instead of having them deducted automatically.

How Income Affects Your Medicare Premium

If your income is above a certain threshold, you pay a higher Part B premium — a surcharge called Income-Related Monthly Adjustment Amount (IRMAA). The income used to calculate this is from two years before the current year. For example, in 2024, Medicare looks at your 2022 income.

The income thresholds are $97,000 for a single filer and $194,000 for married couples filing jointly (2024 figures). If you exceed these amounts, your Part B premium increases in brackets. Someone earning $150,000 as a single filer pays roughly $230 per month instead of $164.90. At $250,000, the premium jumps to around $560 per month.

Part D premiums also increase for higher earners, though the structure varies by plan. You will receive a letter from Social Security and Medicare in October or November each year showing your new premium for the following year, broken down by part.

When Premiums Are Deducted and When They Are Not

Deductions begin the month after you enroll in Part B. If you enroll when you first turn 65, the deduction starts the following month. If you delay enrollment and sign up later, the deduction begins the month after your enrollment is processed.

If you have not yet claimed Social Security when you turn 65, Medicare sends you a bill instead. Once you start receiving Social Security, the premiums switch to automatic deduction. If your Social Security payment is smaller than your Medicare premium, Social Security covers what it can and Medicare bills you for the remainder.

Part D premiums are deducted starting the month after you enroll in a prescription drug plan. If you switch plans during the annual enrollment period (October 15 to December 7), the new premium takes effect January 1.

What Happens If Your Social Security Payment Is Smaller Than Your Premium

If your monthly Social Security benefit is less than your Medicare premium, Social Security will deduct the full amount of your benefit and Medicare will bill you directly for what remains. This situation is uncommon but does occur for people with very small Social Security payments.

You will receive a separate bill from Medicare (or from your Part D plan for drug coverage) for the unpaid portion. You can pay this bill by mail, phone, or online through Medicare.gov. If you do not pay, your coverage can be suspended, though Medicare typically gives you a grace period before that happens.

How to Check Your Deduction Amount

Your Social Security statement shows the deduction each month. Log into your Social Security account at ssa.gov to see your current payment amount and what is being deducted. The statement breaks down Part B and Part D separately.

You can also call Social Security at 1-800-772-1213 to ask about your deduction. Have your Social Security number ready. Medicare sends you a notice each October showing your premiums for the following year — read this carefully, as it is your chance to catch errors or appeal if you believe your income was calculated incorrectly.

If you disagree with your income-based premium, you can request a reconsideration within 60 days of receiving the notice. Life changes like retirement, divorce, or death of a spouse can lower your income and reduce your premium — you can report these changes to Medicare at 1-800-MEDICARE.

Premium Changes Year to Year

Medicare premiums change annually, usually announced in September for the following year. Part B premiums have ranged from $96 to $175 per month over the past decade, depending on the year. Part D premiums fluctuate more widely because they are set by individual insurance companies.

You receive written notice of your new premium by October 15 each year. If the increase is large or unexpected, check whether your income situation has changed — a higher income from two years ago may have triggered an IRMAA surcharge. If your circumstances have changed since then (retirement, loss of income, death of a spouse), you can report this to Medicare and potentially lower your premium retroactively.

Frequently Asked Questions

Can I stop the deduction from my Social Security check?

No. Once you are enrolled in Part B, the premium is deducted automatically. You can disenroll from Part B, but this usually results in a permanent penalty if you enroll again later. The only exception is if you have other health coverage (like employer insurance) that is considered creditable.

What if I think my income was calculated wrong for the IRMAA surcharge?

You have 60 days from the date on your notice to request a reconsideration. Contact Medicare at 1-800-MEDICARE or submit a written appeal. If your income has dropped due to retirement or other life changes, you can report this and potentially have your premium adjusted retroactively.

Do I have to take Part D if I do not take any prescription drugs?

You do not have to enroll in Part D, but if you go without creditable drug coverage for more than 63 days, you will face a permanent penalty when you do enroll. The penalty is roughly 1% of the national average Part D premium for each month you were uninsured, added to your premium for life.

Will my deduction change if I go back to work?

Your premium is based on income from two years prior, so a recent job will not affect your current premium. However, when that income shows up on your tax return two years later, your premium will increase if you cross the income threshold. You can report the income change to Medicare to adjust your premium early if needed.

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

Part B and Part D premiums are the same nationwide. However, Part D premiums vary by plan, and different plans may be available in your new state. You can switch plans during the annual enrollment period without penalty. Your Part B premium does not change based on location.