The Medicare Part B Premium Is Your Monthly Cost for Doctor and Outpatient Care

Medicare Part B is the part of Medicare that covers doctor visits, outpatient care, lab tests, and medical equipment. To have Part B coverage, you pay a monthly premium — the amount you owe each month to keep the coverage active. For 2024, the standard Part B premium is $164.90 per month for most people, though the exact amount you pay depends on your income and when you first became may be able to access for Medicare.

The premium is separate from what you pay when you actually use care. Even if you never see a doctor in a given month, you still owe the premium to keep your coverage. Most people have the premium automatically taken from their Social Security check, so they do not have to remember to pay it separately.

Key Takeaways

  • The standard Part B premium for 2024 is $164.90 per month, but you may pay more or less depending on your income level.
  • If your income is higher than a certain threshold, you will pay an extra amount called an Income-Related Monthly Adjustment Amount (IRMAA).
  • Most people have the premium taken directly from their Social Security payment each month.
  • The premium amount changes each year, and Medicare sends a notice in the fall telling you what you will pay the following year.

How Income Affects What You Pay

If your income is above a certain level, Medicare charges you more than the standard premium. This extra charge is called an Income-Related Monthly Adjustment Amount, or IRMAA. The income threshold changes each year, and it is based on your modified adjusted gross income from two years before — so in 2024, Medicare looks at your 2022 tax return.

The higher your income above the threshold, the more you pay. Someone with a higher income might pay $230 per month or more, while someone with income below the threshold pays only the standard amount. If your income drops — for example, because you retired or had a major life change — you can contact Medicare and ask them to recalculate your IRMAA based on your current income instead of the two-year-old figure.

When Your Premium Starts and How It Changes

Your Part B premium begins the month you become may be able to access for Medicare. If you sign up for Part B when you first turn 65, your premium starts the month you turn 65. If you delay signing up, your premium starts the month you do sign up — and you may also owe a late enrollment penalty that increases your monthly cost permanently.

Medicare announces the new premium amount each fall for the following year. You will receive a notice in the mail (usually in October or November) that tells you what your premium will be starting in January. The amount can go up or down depending on the overall cost of Medicare Part B that year, but in recent years it has generally increased.

What Happens If You Cannot Pay Your Premium

If you fall behind on your Part B premium, Medicare will eventually stop your coverage. However, you have options before that happens. You can contact Medicare directly to set up a payment plan, or you can ask about programs that may help pay your premiums if your income is very low.

Some people with limited income and resources may be covered by a program called Medicaid, which can pay Part B premiums on their behalf. Your state Medicaid office can tell you whether you meet the income and resource limits. You can also contact your local Area Agency on Aging to learn about other programs in your state that help with Medicare costs.

Part B Premium Versus Other Out-of-Pocket Costs

The Part B premium is only one of the costs you will pay for Medicare coverage. When you actually use a doctor or service, you also pay a deductible (a set amount you must pay before Medicare starts to pay) and coinsurance (a percentage of the cost you share with Medicare). These costs are separate from your monthly premium.

For example, you might pay the $164.90 premium every month, but when you see your doctor, you also owe a $226 deductible for the year (as of 2024) before Medicare begins to help pay. After you meet the deductible, you typically pay 20 percent of the cost of most services, and Medicare pays 80 percent. Understanding all these costs together helps you plan your healthcare budget.

How to Check Your Current Premium Amount

You can find out what you are currently paying for Part B by logging into your Medicare account at Medicare.gov or by calling Medicare at 1-800-MEDICARE (1-800-633-4227). When you call, have your Medicare card handy so you can give them your information quickly.

If you receive Social Security, you can also check your payment stub or your online Social Security account to see how much is being deducted each month for Part B. If the amount seems wrong, contact Medicare right away — sometimes there are errors, and they can be corrected.

Frequently Asked Questions

Can I get Part B without paying a premium?

No. Part B always has a monthly premium, though the amount varies based on your income. If you cannot afford the premium, contact your state Medicaid office or local Area Agency on Aging to learn about programs that may help pay it.

What happens if I do not pay my Part B premium?

If you do not pay, Medicare will eventually stop your coverage. You will also owe the unpaid premiums. If you have trouble paying, contact Medicare to set up a payment plan before your coverage ends.

Does my Part B premium go up every year?

The standard premium amount can change each year. Medicare announces the new amount in the fall. Your personal premium may also change if your income changes and triggers an IRMAA adjustment.

If I delay signing up for Part B, will I pay more forever?

Yes. If you do not sign up when you first become may be able to access, you will owe a late enrollment penalty that increases your monthly premium by 10 percent for each full year you delayed. This penalty stays with you for as long as you have Part B.

Can I change my Part B premium if my income drops?

Yes. If you have a major life change — such as retirement, loss of income, or death of a spouse — you can contact Medicare and ask them to recalculate your IRMAA based on your current income instead of the two-year-old tax return they normally use.