Is Medicare deducted from social security?
Learn how to have your Medicare premiums automatically deducted from Social Security each month if you are eligible for Medicare coverage.
Medicare is a Social Insurance program that is available to US citizens 65 years or older and individuals with a disability. Typically, if you receive Social Security retirement or disability benefits, you may want to have your Medicare premiums automatically deducted from your monthly benefits. But, can Medicare premiums be deducted from your Social Security check?
If you receive Social Security benefits, and you have enrolled for Medicare coverage, you can have your Medicare Premiums deducted automatically from your Social Security check each month. This option is available for all Medicare plans, including Part B (medical insurance), Part C (Medicare Advantage), and Part D (prescription drugs). For Part C and D, you will need to contact the insurance company that sells the Medicare plan to set up the payment.
When do you have to pay for Medicare?
If you are not eligible for Medicare Part A benefits, you will need to pay a monthly Part A premium to get coverage. Typically, you can get premium-free Part A coverage if you or your spouse worked at least 40 quarters, equivalent to 10 years of work. If you have less than 40 quarters, you will need to pay a monthly premium to get Part A coverage.
If you enroll for Medicare Part B, you will need to pay a monthly premium to get coverage. Also, if you enroll for Medicare Part C and D, you will be required to pay a monthly premium to get benefits from these plans. If you receive Social Security benefits, you can have your Medicare premiums deducted from your benefits. If you don’t authorize these benefits to be deducted from your Social Security, you will need to pay premiums using other payment options.
Can Medicare Part A Premiums be deducted from Social Security?
People who worked for at least 10 years, or 40 quarters, typically qualify for Medicare Part A. You can also qualify for Part A coverage without paying a monthly premium if you have a disability, usually at any age.
Only beneficiaries who have less than 40 quarters must pay a monthly premium for Part A. If you are receiving Social Security benefits, Medicare will automatically deduct premiums from your monthly checks. The amount of premium you pay depends on how long you worked.
If you don’t have enough quarters to qualify for Part A coverage, it means you won’t have enough work credits to receive Social Security checks. In this case, Medicare will bill you each month.
Can Medicare Part B be deducted from Social Security?
Medicare can automatically deduct Part B premiums from your monthly Social Security benefits if you have enrolled for Medicare Part B and you collect Social Security benefits. Medicare can also deduct your monthly premiums from Railroad retirement benefits. For 2023, the monthly premium for Part B is $164.90, a decline from $170.10 in 2022.
Individuals who have their Medicare premiums deducted from their Social Security checks are protected by the hold harmless provision. This provision requires that Social Security benefits may not be reduced due to increases to Part B premiums that are higher than the cost-of-living adjustments (COLA) made to Social Security benefits each year.
If you pay Medicare Part B premiums using other options other than Social Security, you are not protected by the hold harmless provision.
Beneficiaries who pay their Part B premiums using other payment options other than Social Security are not protected by the hold harmless provision. This means that they may have a Part B premium increase that is higher than the COLA made to Social Security benefits.
Can Medicare Part C and Part D be deducted from Social Security?
Medicare Part C (Medicare Advantage) and Medicare Part D (prescription drug coverage) are sold by private insurers that have existing contracts with Medicare. If you receive both benefits, you can decide to have both benefits deducted automatically from Social Security.
However, you must contact your insurer and request to have the premiums deducted from your Social Security check. You can also have the Medicare bill mailed to you every month.
Medicare Part C combines the benefits and services from Parts A and B, and some plans may also offer vision, dental, and hearing coverage. You may still need to pay Part B monthly premiums, but your Advantage plan may cover this premium. You will still need to pay for the Advantage Plan’s monthly premium, which varies across plans. You can compare options on the Medicare website. Part C premiums typically range from $0 to $200.
Medicare Part D covers the cost of prescription drugs, and it is not included with the Original Medicare. However, since Part D plans are offered by private insurers, their costs may vary. If your income is higher, you may pay an additional fee known as Part D-IRMAA.
Alternative ways of paying for Medicare Premiums
If your Medicare premiums are not deducted automatically, you can pay your Medicare bills online or by mail. Here are the payment options you have:
You can pay your Medicare premium online with a credit card or debit card via your Medicare account.
Set up automatic payments using Medicare Easy Pay, and Medicare payments will be deducted from your checking account.
Use your bank’s automatic bill pay feature so that your payments are automatically sent to Medicare.
Mail Medicare a check or money order along with the tear-off portion of your Medicare bill.
Use the tear-off portion of your Medicare bill to write down your credit or debit card information and mail it to Medicare for payment.