What Gets Deducted From Your Social Security for Medicare

Medicare premiums are taken directly from your Social Security payment each month. The amount depends on which parts of Medicare you have enrolled in and your income level. Part B (medical insurance) and Part D (prescription drug coverage) both have premiums that reduce your check. Part A (hospital insurance) has no premium for most people. Part C (Medicare Advantage) replaces Parts A and B, so the deduction changes if you switch to it.

The deduction happens automatically — you do not have to do anything to set it up. Your Social Security Administration (SSA) office coordinates with Medicare to pull the premium from your monthly benefit before you receive it. If you have multiple Social Security payments (for example, as a retired worker and a spouse), Medicare may deduct from one or both depending on your enrollment.

Key Takeaways

  • Part B premiums are deducted from your Social Security check automatically, and the standard amount changes each year based on federal rules.
  • Your income from the previous two years determines whether you pay the standard premium or a higher amount called an Income-Related Monthly Adjustment Amount (IRMAA).
  • Part D premiums vary by plan and are also deducted from Social Security, though some low-income beneficiaries receive subsidies that reduce the cost.
  • If you delay enrolling in Part B after you turn 65, you may face a permanent penalty that increases your monthly premium for life.
  • You can see your exact deduction on your Social Security payment stub or by logging into your my Social Security account online.

Standard Part B Premiums and How They Change

The standard Part B premium amount is set by federal law and changes each January. In 2024, the standard premium was $164.90 per month, but this figure changes annually. The Centers for Medicare & Medicaid Services (CMS) announces the new amount in the fall of the previous year. You can find the current premium on Medicare.gov or by calling Social Security at 1-800-772-1213.

Not everyone pays the standard amount. If your income is below a certain threshold, you pay the standard premium. If your income exceeds that threshold, you pay a higher amount. This higher amount is called an Income-Related Monthly Adjustment Amount, or IRMAA. The income limits and IRMAA brackets change each year, so what you paid last year may not be what you pay this year.

Your income is measured using your Modified Adjusted Gross Income (MAGI) from two years prior. For example, your 2024 premium is based on your 2022 income. This two-year lag means you may not know your exact premium until you receive your first payment. If your income drops significantly — for example, due to retirement or a spouse's death — you can request a recalculation by contacting Social Security.

Income-Related Premiums (IRMAA) and Income Thresholds

IRMAA applies to both Part B and Part D. If your income exceeds the threshold, you pay the standard premium plus an additional amount. The thresholds are different for single filers and married couples filing jointly. A single person with income above a certain level pays more; a married couple with the same combined income may pay less because the threshold is higher for joint filers.

The income brackets have multiple tiers. Exceeding the lowest threshold by even $1 moves you into a higher bracket with a larger surcharge. For example, in 2024, a single person with income between $97,000 and $122,000 paid a different IRMAA than someone with income between $122,000 and $147,000. Each bracket has its own premium amount. The higher your income, the higher your Part B and Part D premiums.

If you believe your income has changed since the two-year lookback period — for instance, you retired or your spouse died — you can file a Life-Changing Event form with Social Security. This may lower your IRMAA. You must file within 60 days of the event. Social Security will recalculate your premium based on your current income and adjust your deduction going forward.

Part D Prescription Drug Coverage Premiums

Part D premiums vary widely because they are set by private insurance companies offering the plans. There is no single standard amount. A basic plan might cost $5 to $15 per month, while a more comprehensive plan might cost $30 to $100 or more. The premium you pay depends on which plan you choose during the annual enrollment period (October 15 to December 7 each year).

Like Part B, Part D premiums are also subject to IRMAA if your income is high. You pay the plan's base premium plus an income-related surcharge. This surcharge is added to your Social Security deduction alongside your Part B IRMAA. If you have both Part B and Part D income-related adjustments, both amounts are deducted from your check.

If you have limited income, you may be may be able to access for the Low-Income Subsidy (LIS) program, which reduces or eliminates your Part D premium. To learn whether you may have access to, contact your local Medicaid office or call 1-800-MEDICARE. The income limits for LIS are higher than for many other information programs, so it is worth checking even if you think you earn too much.

Part A and Part C: Different Deduction Rules

Part A (hospital insurance) has no monthly premium for most people who worked and paid Medicare taxes for at least 10 years. Because there is no premium, nothing is deducted from Social Security for Part A. If you did not work long enough to may have access to for premium-free Part A, you can purchase it, and that premium would be deducted from your check — but this is uncommon.

Part C (Medicare Advantage) is an alternative to Original Medicare (Parts A and B). If you enroll in a Part C plan, you still pay your Part B premium, which is deducted from Social Security. Many Part C plans have no additional premium beyond Part B, though some charge a small monthly fee. That fee, if any, is also deducted from your Social Security payment. Part D is separate; some Part C plans include drug coverage, while others do not.

How to Check Your Medicare Deduction

You can see exactly what is being deducted from your Social Security by reviewing your payment stub. If you receive your payment by direct deposit, your bank statement shows the net amount deposited. The Social Security Administration also provides an online portal called my Social Security, where you can log in and view your payment details, including any deductions.

To access my Social Security, go to ssa.gov and create an account using your email address and Social Security number. Once logged in, you can see your payment amount, deductions, and a breakdown of what each deduction covers. If you do not use the online portal, you can call Social Security at 1-800-772-1213 and ask for a detailed breakdown of your payment and deductions.

If you notice a deduction you do not recognize or believe is incorrect, contact Social Security when ready. Errors can occur, and the sooner you report them, the sooner they can be corrected. Keep copies of your payment stubs and any correspondence from Medicare or Social Security for your records.

What Happens If You Delay Enrolling in Part B

If you do not enroll in Part B when you first turn 65, you may face a permanent penalty. The penalty is a 10 percent increase in your Part B premium for each full year you delay enrollment after your initial enrollment period. This penalty is added to your standard premium and stays with you for life, even if you later enroll.

There are exceptions. If you have employer health coverage through your job or your spouse's job, you can delay Part B without penalty as long as you enroll within eight months of losing that coverage. If you are a federal employee, you may have additional protections. The key is to enroll during your Initial Enrollment Period (the three months before, the month of, and the three months after your 65th birthday) or during a Special Enrollment Period if you may have access to.

If you believe you were penalized in error, you can request a review by contacting Social Security or Medicare. Provide documentation of any employer coverage you had when you turned 65. Penalties can sometimes be waived if you can show you had creditable coverage and did not know you needed to enroll.

Frequently Asked Questions

Can I stop Medicare deductions from my Social Security check?

No. If you are enrolled in Medicare Part B or Part D, the premiums are deducted automatically from your Social Security payment. You cannot opt out of the deduction. However, you can disenroll from Part B or Part D if you have other coverage, though this may result in penalties if you re-enroll later. Contact Medicare at 1-800-MEDICARE to discuss your options.

What if my Social Security payment is less than my Medicare premium?

This is rare but can happen. If your premium exceeds your Social Security payment, Medicare will deduct what it can from your check, and you will receive a bill for the remaining amount. You can set up a payment plan with Medicare to pay the balance monthly. Contact Medicare at 1-800-MEDICARE to arrange this.

Do I pay Medicare premiums if I am still working after 65?

Yes. If you are enrolled in Medicare, you pay premiums regardless of whether you are working. However, if you have employer health coverage through your current job, you may be able to delay Part B enrollment without penalty. Once you stop working, you must enroll in Part B within eight months to avoid a permanent penalty.

How do I know if my IRMAA is correct?

Review the Social Security Benefit Statement you receive each year, which shows your income and IRMAA calculation. If you believe the income used is wrong, contact Social Security with documentation of your actual income. You have the right to request a recalculation if your circumstances have changed since the two-year lookback period.

Will my Medicare deduction increase if I get a cost-of-living adjustment (COLA)?

Possibly. If your Social Security payment increases due to COLA, your Medicare premium may also increase. However, there is a "hold harmless" rule that protects most beneficiaries: your net Social Security payment (after Medicare deductions) cannot decrease due to a Part B premium increase. This means the premium increase is limited to your COLA increase. This rule does not explore to people with high incomes subject to IRMAA.