When someone pays a Medicare premium, they are paying for the month or months ahead rather than the current month. Most people on Medicare have their premiums deducted automatically from their monthly benefits check.
Medicare consists of multiple parts, and each part may require a person to pay a premium. People receiving Social Security or Railroad Retirement Benefits have their premiums deducted from their monthly benefit payment. This payment applies to future months.
People who do not receive these benefits will receive a bill monthly or every 3 months, depending on which part of Medicare it applies to. Payment is due by the date on the bill, which is usually toward the end of the month.
Glossary of Medicare terms
We may use a few terms in this article that can be helpful to understand when selecting the best insurance plan:
- Out-of-pocket costs: An out-of-pocket cost is the amount a person must pay for medical care when Medicare does not pay the total cost or offer coverage. These costs can include deductibles, coinsurance, copayments, and premiums.
- Deductible: This is an annual amount a person must spend out of pocket within a certain period before an insurer starts to fund their treatments.
- Coinsurance: This is the percentage of treatment costs that a person must self-fund. For Medicare Part B, this is 20%.
- Copayment: This is a fixed dollar amount a person with insurance pays when receiving certain treatments. For Medicare, this usually applies to prescription drugs.
A person may or may not get a bill from Medicare, depending on whether they are collecting Social Security (SS) or Railroad Retirement Benefits (RRB).
Without SS or RRB benefits
If someone enrolls in Original Medicare before they begin receiving Social Security or Railroad Retirement Benefits, they will receive a CMS-500 bill for 3 months of Part B premiums. Part A is typically premium-free. The bill usually arrives around the 10th of the month and must be paid by the 25th.
Payment is due 1 month before their Medicare coverage begins. This applies to the first 3 months of Part B coverage. Their next bill will arrive 3 months later.
If people also pay for Part A or Part D Income Related Monthly Adjustment Amounts (IRMAAs) or use Medicare Easy Pay to pay their premiums, they will receive a monthly bill. Part D IRMAA applies to people with an income above $103,000 for an individual or $206,000 for a married couple.
With SS or RRB benefits
If a person gets SS or RRB benefits, they are eligible for Original Medicare.
Once a person begins receiving SS or RRB, their Original Medicare premiums are automatically deducted from their monthly benefit amount.
People with Medicare plans from private insurers will receive a bill directly from them. The timing of these bills and the payment period they cover may vary between insurers.
The following sections explain how billing works for other Medicare programs.
Medicare Advantage
Instead of enrolling in Original Medicare (parts A and B), some people choose to enroll in Part C or Medicare Advantage. This is an alternative to Original Medicare.
In this case, people must pay Part B premiums in addition to the costs of their Medicare Advantage plan.
Medicare Part D
Original Medicare does not include prescription drug coverage, so a person may choose to get Part D, which offers this benefit.
If a person enrolls in a Part D prescription drug plan, they will pay an additional monthly premium for the plan.
Learn more about Part D.
Medicare supplement insurance
Medigap is a Medicare supplement insurance plan that pays 50% to 100% of the Original Medicare (parts A and B) out-of-pocket costs.
These plans are available to people enrolled in Original Medicare, and there will be a monthly premium to pay.
Learn more about how Medigap plans work.
How to pay these premiums
Because private health insurance companies offer Medicare Advantage, Part D, and Medigap plans, people must pay the premiums directly to the plan provider rather than to Medicare.
Most companies offer different ways of paying bills, including:
- direct billing to pay online or through the mail
- credit card payments
- SS check deduction
Find out about Medicare costs in 2024.
The late payment process differs between Original Medicare and Medicare plans from private insurers.
Original Medicare late payments
For Original Medicare (parts A and B), Medicare sends a person an initial bill. If they pay it late, they will get a second bill, which includes the past-due premium amount and the premium that is due the following month.
If a person does not pay the second bill by the 25th day of the month, they will receive a Delinquent Bill. People who do not pay the Delinquent Bill by the 25th day of the next month will lose their Medicare coverage.
Parts C and D late payments
Part C or Medicare Advantage plans and Part D plans have a minimum 2-month grace period for late premium payments before a person loses their coverage.
The plan provider will send a bill with the amount due and the due date. They will also send a written notice of nonpayment, which explains that disenrollment will occur if the person does not make full payment within the grace period.
There are several ways to pay for Medicare premiums, including:
- through the Medicare account
- online through a bank’s bill payment service
- by mailing payment to Medicare
- by using Medicare Easy Pay, which is a free service that deducts the premiums from a person’s bank account, usually on the 20th day of the month
The following programs may help people pay Medicare costs:
- Extra Help: This program for people with limited incomes helps pay Part D costs, assisting with about $8,000 of medication expenses annually.
- Medicaid: This state-federal program helps people with low incomes and limited resources pay their healthcare costs.
- Medicare savings programs: These programs can help qualified people pay certain costs.
When people pay for Medicare premiums, the payment always applies to future months of coverage.
People with Original Medicare who receive Social Security or Railroad Retirement Benefits have their Medicare premium payments deducted from their monthly benefits.
Those who pay for Original Medicare receive a bill that they must pay by the 25th day of the month.
Premiums for Medicare Advantage plans, Part D plans, and Medigap plans are due on whatever date is on the monthly bill.
Medicare costs include premiums, copays, deductibles, and coinsurance. If a person has difficulty paying Medicare costs, they may qualify for one of the programs that help people with low incomes.