Medicare premiums come out of your Social Security payment each month

Yes, Medicare Part B and Part D premiums are deducted directly from your Social Security check if you are enrolled in both programs. This happens automatically — you do not have to do anything to set it up. The deduction appears as a line item on your Social Security payment stub.

Part B covers doctor visits and outpatient care. Part D covers prescription drugs. Most people pay both premiums. The amount deducted changes each year, usually in January, when Medicare announces new premium rates. If you have higher income, you may pay an additional surcharge called an Income-Related Monthly Adjustment Amount (IRMAA), which also comes out of your Social Security check.

Part A, which covers hospital stays, has no monthly premium for most people who worked long enough to earn it. Part A is free once you turn 65 and meet the work history requirement.

Key Takeaways

  • Medicare Part B and Part D premiums are automatically deducted from your Social Security payment each month.
  • The standard Part B premium in 2024 is $164.90 per month, but this amount changes yearly and may be higher if your income is above certain thresholds.
  • Part D premiums vary by plan and insurance company, so your deduction depends on which drug plan you chose.
  • You can see the exact amount deducted on your Social Security payment stub, and you can contact Social Security if the deduction appears wrong.
  • If you do not receive Social Security yet, you will pay Medicare premiums directly to Medicare until your Social Security payments begin.

When the deduction starts and how much it is

The deduction begins the month after you turn 65 and enroll in Medicare Part B. If you enroll in Part B when you first become may be able to access at 65, the deduction starts the following month. If you delay enrollment, the deduction starts whenever you do enroll — but you may owe a late enrollment penalty that increases your monthly premium permanently.

The Part B premium amount is set by Medicare each year. In 2024, the standard premium is $164.90 per month, but this changes annually. Medicare announces the new rate in the fall, and it takes effect January 1. Your Social Security payment in January will reflect the new amount.

Part D premiums are not set by Medicare — they are set by each insurance company offering drug plans. Your Part D deduction depends entirely on which plan you chose during enrollment. Two people with the same Social Security payment might have different Part D deductions because they chose different plans.

Income-related surcharges (IRMAA) and higher premiums

If your income is above a certain level, Medicare charges you more. This extra amount is called an Income-Related Monthly Adjustment Amount, or IRMAA. It applies to both Part B and Part D. The surcharge can be substantial — in some cases, doubling or tripling your Part B premium.

Medicare bases IRMAA on your income from two years ago. If you earned more in 2022, your 2024 premiums are higher. If your income drops — because you retire, sell a home, or have a major life change — you can ask Medicare to recalculate your IRMAA based on your current income. This is called a life-changing event appeal. You must file it within 60 days of the event.

The income thresholds for IRMAA change each year. If you are single and your income was above roughly $97,000 in 2022, you likely paid an IRMAA surcharge in 2024. Married couples filing jointly face higher thresholds. The exact amounts vary, so contact Medicare directly to learn whether you are affected.

What to do if the deduction looks wrong

Check your Social Security payment stub each month. You can view it online through your Social Security account at ssa.gov, or you can call Social Security at 1-800-772-1213. The stub shows your gross payment, the Medicare deduction, and your net payment.

If the deduction is higher than you expected, the most common reasons are: a new IRMAA surcharge you were not aware of, a change in your Part D plan premium, or an error in Medicare's records. Call Medicare at 1-800-MEDICARE (1-800-633-4227) to ask why your premium changed. Have your Social Security statement in front of you when you call.

If you believe the deduction is wrong, you can file a complaint with Social Security or Medicare. Social Security handles the deduction itself; Medicare sets the premium amount. If Social Security deducted the wrong amount, Social Security will correct it. If Medicare charged the wrong premium, Medicare will correct it and may owe you a refund.

If you do not receive Social Security yet

If you are 65 or older but do not yet receive Social Security — perhaps because you are still working or chose to delay benefits — you cannot have Medicare premiums deducted from Social Security. Instead, you pay Medicare directly.

Medicare will send you a bill each month, or you can set up automatic payments from your bank account. Once your Social Security payments begin, you can contact Social Security and Medicare to switch to automatic deduction from your Social Security check. This usually takes effect the following month.

Some people delay Social Security to get a higher benefit amount later, but still enroll in Medicare at 65. In that case, you pay Medicare out of pocket until Social Security starts. There is no penalty for this — you can enroll in Medicare and Social Security at different times.

What happens if you do not pay the premium

If you owe a Medicare premium and do not pay it, Medicare will eventually stop your coverage. For Part B, Medicare typically gives you a grace period of a few months before canceling your coverage. For Part D, the grace period is shorter — usually about 30 days.

If your coverage is canceled, you can re-enroll, but you may owe a late enrollment penalty. The penalty is permanent and increases your monthly premium for as long as you have Medicare. The penalty is roughly 1 percent of the Part B premium for each month you were not enrolled, and 1 percent of the average Part D premium for each month you were not enrolled.

If you cannot afford your Medicare premiums, contact Social Security or Medicare to ask about programs that may help. Some states offer programs that pay Medicare premiums for people with low income. Medicare also has a program called Extra Help that reduces Part D costs for people who may have access to based on income and resources.

How to change your Medicare plan or coverage

If you want to switch to a different Part D plan or a different Part B option (such as Original Medicare to a Medicare Advantage plan), you can do so during the annual enrollment period, which runs from October 15 to December 7 each year. Changes take effect January 1.

If you switch plans, your new premium takes effect in January. The deduction from your Social Security check will change to reflect your new plan's cost. You will see the new amount on your January payment stub.

You can also make changes outside the annual period if you have a may have access to life event — such as losing employer coverage, moving to a new state, or having a major change in income. Contact Medicare within 60 days of the event to request a change.

Frequently Asked Questions

Can I stop the Medicare deduction from my Social Security check?

You can disenroll from Part B or Part D, which stops the deduction. However, disenrolling usually triggers a late enrollment penalty if you re-enroll later. If you have employer coverage or other health insurance, you may be able to delay Part B without penalty — contact Social Security to ask about your specific situation.

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

This can happen if your Social Security benefit is very small and your Medicare premium is high. Social Security will deduct the premium from your payment, leaving you with little or nothing. If you cannot afford your premiums, ask Medicare about Extra Help for Part D or state programs that information with Part B costs.

Does Medicare deduct from my spouse's Social Security if we are married?

No. Medicare deducts only from the Social Security check of the person enrolled in Medicare. If both spouses are enrolled, each person's check is reduced by their own Medicare premiums. The deductions are separate.

Will my Medicare premium go down if my income drops?

Yes, but only if you report the income change to Medicare within 60 days. This is called a life-changing event appeal. Common may have access to events include retirement, loss of a job, or a major drop in income. Contact Medicare at 1-800-MEDICARE to file the appeal and provide proof of your new income.

How do I know if I am paying an IRMAA surcharge?

Look at your Social Security payment stub. It will list your Part B premium and any IRMAA amount separately. If you see a line item labeled "IRMAA" or "Income-Related Monthly Adjustment," you are paying a surcharge. Call Medicare to confirm the reason and to ask whether you can appeal based on a recent income change.