Paying for Original Medicare
Part A and B, or the “Original Medicare,” is run by the federal government. You will pay your Medicare Part B premium and your Part A premium if you have a premium directly to your Medicare. There are several methods to establish your payments:
- You can enroll in Medicare Easy Pay. This free online system allows Medicare to automatically deduct your premium from your bank account. To register, you will need to mail in a form and wait six to eight weeks for processing.
- Suppose you are already receiving retirement benefits through Social Security or the Railroad Retirement Board. In that case, your premium or monthly payments will be automatically deducted from your benefits payment.
- Suppose you are a Federal retiree receiving an annuity from the Federal Office of Personnel Management. You do not receive Social Security. In that case, you will not have your premium automatically deducted from your annuity payments. However, you can request automatic deductions through Medicare.
- You can also take advantage of your bank’s automated bill payment system, if available to you. Your bank will automatically make the payments from your account each period.
- If you don’t like automated payments, you can mail a check or money order, credit or debit card payment manually.
When your payment is not withdrawn from Social Security
If you do not receive Social Security retirement benefits yet, Medicare will send you a bill in form CMS-500. It will list the dates your payment will cover, usually the next three months. If you missed a payment or had a change in your premium amount, your bill shows that. Usually, you will receive your invoice around the 10th of each month. Payment is due on the 25th. Medicare bills quarterly, so you can expect a bill every three months. However, if paying a full quarter at once creates financial difficulties, you can contact your local Social Security office to request monthly bills.
Although your bill will be due on the 25th of each month, Medicare offers a three-month grace period for you to make your payment. After this grace period finishes, you will receive two notices in the mail to remind you to pay. After which, Medicare may disenroll you from Part B. If your Part B coverage is disenrolled, you will need to re-enroll during the next open enrollment period. Your coverage will not start again for a couple of months after that. You could also face permanent late enrollment fees, which could increase your premium for the rest of your life.
Paying for Part D
Suppose your income is below $87,000 per year or $170,000 if you’re married and file jointly. In that case, you can simply pay your Medicare Part D premium directly to the private insurer that issued the policy. Suppose your income surpasses that level, though. In that case, you may be required to pay a Part D Income Related Monthly Adjustment Amount (Part D-IRMAA). If you are required to pay a Part D-IRMAA, you’ll make that payment directly to Medicare while paying your monthly premium to your Part D plan.
Don’t forget about IRMAA –if you fail to pay it, you can lose your Part D coverage and might not get it back. To simplify things, you can have your Part D premium automatically subtracted from your Social Security check. Still, you’ll have to contact your plan, not the Social Security office, to establish the payments.
Medigap and Medicare Advantage Payments
If you enroll in a Medigap plan, you’ll pay your Medigap premium to your Medigap insurer –not to Medicare. Similarly, if you choose Medicare Advantage, you’ll pay any related premium to the plan’s private insurer. It is likely to have those premiums automatically deducted from your benefits check. Still, you’ll have to contact the Social Security office to establish that.