Yes. If you are already collecting your Social Security benefits or Railroad Retirement benefits, your Medicare Part B monthly premiums will be deducted from your monthly Social Security benefits.
The same federal administration oversees both programs, so they coordinate your benefits easily. Since the cost is deducted from your benefit, you don’t need to worry about paying it on time and can plan your budget around the reduced benefit coming in.
People who are enrolled in Medicare but have not yet signed up for their Social Security payments will be billed quarterly by Medicare. This will arrive as the Medicare Premium Bill (Form CMS-500).
People who only buy Part B will receive their Medicare Premium Bill every three months. People who pay for Part A will receive a Medicare Premium Bill every month. These bills are due on the 25th of each month.
If you are late making your payment, you will receive a Second Bill with two months’ charges on it. After the time to pay that bill passes, you will receive a Delinquent Bill. If you have not paid the Delinquent Bill by the 25th of the month, you will lose your Medicare benefits.
How Much Do Medicare Premiums Cost?
Americans who collect Social Security will have reached the required work credits needed to receive premium-free Part A. If you have to buy Part A, in 2021 your monthly premiums will be $4471 or $259, depending on how many work credits you or your spouse have earned.
Everyone pays Part B monthly premiums. The 2021 Part B monthly premiums are $148.50.
The Part B Income Related Monthly Adjustment Amount (IRMAA) charge makes it so that people who have incomes over a certain amount have an extra charge added to their bill each month.
The late enrollment penalty for Part B lasts for the lifetime of your coverage. This is an additional charge of 10% for each 12 months you went without enrollment once you were eligible for Medicare. If you signed up during a Special Enrollment Period, this charge will not apply.
How to Pay Your Medicare Premium Bill
There are a few available options to pay your Medicare bill. You can pay online through your secure Medicare account. Online payments can be made from your credit card, debit card, or checking or savings account.
You could pay your bill through your bank’s online bill payment service directly through your checking or savings account.
You can sign up for Medicare Easy Pay, which automatically deducts your payment from your checking or savings account, usually on the 20th of each month.
You also have the option to pay your Medicare bill by mail. Fill out the payment coupon that will come with your bill, then send this along with your check, money order, or payment via credit or debit card (you will enter the account information and expiration date on the payment coupon).
For more information about Social Security, paying your bill or Medicare costs, contact Texas Medicare Advisors.