What Medicare Part B costs you each month

Medicare Part B is the part of Medicare that covers doctor visits, outpatient care, and some medical equipment. You pay a monthly premium for Part B — the amount you owe depends on your income and when you first became may be able to access for Medicare.

For 2024, the standard Part B premium is $164.90 per month for most people. However, if your income is higher, you will pay more. Medicare calls these higher amounts Income-Related Monthly Adjustment Amounts, or IRMAA. If your income is lower and you have limited resources, you may pay less or nothing at all through a program called Medicaid.

Your Part B premium is usually taken directly from your Social Security check each month. If you do not receive Social Security, Medicare sends you a bill. The premium amount can change each year, and Medicare announces the new amount in the fall.

Key Takeaways

  • The standard Part B premium for 2024 is $164.90 per month, but you may pay more if your income is above certain thresholds.
  • Income-based surcharges (IRMAA) can add $70 to $560 per month to your Part B cost, depending on your modified adjusted gross income from two years prior.
  • Your premium is usually deducted from your Social Security payment automatically each month.
  • You can lower your Part B premium if your income has dropped due to retirement, job loss, or other life changes by requesting an appeal.
  • Some people with limited income and resources may pay a reduced premium or nothing through Medicaid or other information programs.

How income affects what you pay

Medicare uses your income from two years ago to decide if you pay extra. If you earned more in that year, you pay more now. The income threshold changes each year. For 2024, if you are single and your modified adjusted gross income is over $103,000, you will pay a surcharge on top of the standard premium. If you are married filing jointly, the threshold is $206,000.

The surcharge amounts range from about $70 to $560 per month, depending on how much your income exceeds the threshold. Someone with a much higher income pays the maximum surcharge. Medicare sends you a notice in the mail explaining your specific premium amount and why it is higher than the standard rate.

These income thresholds and surcharge amounts change each year. You can contact Social Security or Medicare directly to find out the current year's thresholds, or you can check the official Medicare website.

When your income has changed

If your income dropped since the year Medicare used to calculate your premium, you can request that Medicare recalculate what you owe. Common reasons include retirement, job loss, death of a spouse, or a significant drop in investment income. Medicare calls this a Life-Changing Event appeal.

To request a recalculation, you will need to contact Social Security (if your premium is deducted from your Social Security check) or Medicare directly. You will need to explain what changed and provide documents that prove it — such as a recent tax return, a letter from your employer, or a death certificate. The process usually takes a few weeks.

If Medicare approves your appeal, your new premium amount will take effect the following month. If you disagree with Medicare's decision, you have the right to request a hearing.

Part B premium and Medicaid

If you have limited income and resources, you may be covered by both Medicare and Medicaid. Medicaid is a state and federal program for people with low income. In some states, Medicaid pays your Part B premium for you. In other states, Medicaid may pay part of it.

To learn about you may have access to, you will need to contact your state Medicaid office. Each state has different income and resource limits. Some states are more generous than others. You can also call 211 to be connected to local benefits counselors who can tell you what programs may help you pay your premiums.

What happens if you do not pay your Part B premium

If you do not pay your Part B premium, Medicare will send you a notice and give you a grace period to pay. If you do not pay within the grace period, Medicare will drop your Part B coverage. Once your coverage ends, you cannot restart it until the next general enrollment period, which runs from January 1 to March 31 each year.

If you miss the general enrollment period, you may have to wait until the following year to sign up again. There is one exception: if you have a may have access to life event (such as losing employer coverage), you may be able to enroll outside the general enrollment period.

If you are having trouble paying your premium, contact Medicare before your coverage lapses. You may be able to set up a payment plan or find out about information programs in your area.

How to find out your exact Part B premium

Your Part B premium amount appears on your Medicare Summary Notice, which Medicare mails to you once a year. You can also log into your Medicare account at Medicare.gov to see your premium. If you receive Social Security, you can also call Social Security at 1-800-772-1213 to ask what your Part B premium is.

If you have not yet signed up for Medicare and want to know what the premium will be, you can call Medicare at 1-800-MEDICARE (1-800-633-4227). They can tell you the current standard premium and explain how income surcharges work. Keep in mind that your actual premium will depend on your income at the time you sign up.

When to contact Medicare about your premium

Contact Medicare if your premium amount seems wrong, if your income has dropped significantly, or if you cannot afford to pay. You should also reach out if you are turning 65 and need to understand what Part B will cost you before you sign up.

You can reach Medicare by phone at 1-800-MEDICARE, by visiting Medicare.gov, or by visiting your local Social Security office. Have your Social Security number and any recent tax documents ready when you call.

Frequently Asked Questions

Can I get my Part B premium lowered if I retired this year?

Yes. If your income dropped because you retired, you can request that Medicare recalculate your premium based on your current income. Contact Social Security or Medicare and explain that you retired. You will need to provide proof, such as a letter from your employer or a recent tax return showing lower income.

What is the difference between Part B premium and Part B deductible?

The premium is what you pay each month to have Part B coverage. The deductible is what you pay out of your own pocket before Part B starts to pay for your care. For 2024, the Part B deductible is $240 per year. You pay the premium whether you use Medicare or not; you only pay the deductible if you actually see a doctor or use covered services.

Do I have to pay Part B premium if I am still working?

Yes, if you are enrolled in Part B, you must pay the premium even if you have employer coverage. However, if you are still working and covered by your employer's health plan, you may be able to delay enrolling in Part B without penalty. Talk to your employer's benefits office and Medicare before you turn 65 to understand your options.

What if I cannot afford my Part B premium?

Contact your state Medicaid office to see if you may have access to for help paying premiums. You can also call 211 to speak with a benefits counselor who knows about local information programs. If you are having trouble paying, tell Medicare before your coverage lapses — they may be able to help you set up a payment plan.

Will my Part B premium go up every year?

The standard Part B premium usually increases each year, though the amount varies. Medicare announces the new premium in the fall for the following year. If your income stays the same, your surcharge (if you have one) may also increase. If your income drops, you can request a recalculation.