Sunday, August 14, 2022

Is Medicare Part B Premium Automatically Deducted From Social Security

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Why Such A Big Jump This Year

Social security benefits getting a boost

Often, big increases are a result of something that happened in prior years along with the outlook for the future. We tend to see several years of lower increases followed by a big jump to realign premiums with actual costs of care and usage.

This years increase is a combination of both anticipated trends and making up some ground:

  • The law requires that Medicare costs be estimated based on current spending trends. COVID-19 is driving some of the increase in overall health spending.
  • Monthly premiums in 2021 only grew 3% as a result of a law change that limited the increase that could be applied due to COVID-19 economic concerns.
  • There is significant concern over spending on certain drugs. Medicare needs a sufficient contingency account in anticipation of increases in drug spending.

In addition, there is still a $3.00 per month repayment charge that is a carryover from accommodations of the hold-harmless rule in 2016.

For more in-depth information, read the CMS announcement here.

Dont Risk Losing Your Medicare Coverage: Sign Up For Medicare Easy Pay

Each year some enrollees lose their Medicare Part B coverage because they do not pay their Part B premiums to Medicare on time. As an STRS Ohio health care plan participant, its important for you to maintain your Medicare Part B coverage. If you lose your Part B coverage, you will not be eligible for an STRS Ohio medical plan.

Your Medicare premium is not included in your monthly STRS Ohio health care premium. Instead, it is a separate premium that must be paid directly to Medicare.

Many enrollees have their Medicare Part B premium automatically deducted from their Social Security benefit or other federal retirement payment. If your premium is not deducted from a federal retirement payment, Medicare will send you a bill for your Part B premium every three months.

Instead of writing checks, a better option is to sign up for Medicare Easy Pay. Medicare Easy Pay is a free, electronic payment option that automatically deducts your Medicare premium from your savings or checking account each month. If you currently receive a premium bill from Medicare, you should sign up for Medicare Easy Pay.

To sign up, youll need to submit an to the Centers for Medicare & Medicaid Services . This form is also available by calling Medicare toll-free at 8006334227 or visiting Mail the completed form to: Medicare Premium Collection Center, P.O. Box 979098, St. Louis, MO 63197-9000. Please allow up to eight weeks for your authorization form to be processed.

How Does Social Security Relate To Medicare Part B

Medicare and Social Security are both federal benefit programs, so it makes sense that theyre linked. This is done to lighten the administrative burden. Basically, its easier to manage your monthly premiums together with your monthly Social Security benefits, both for you and for the government.

The link actually goes beyond Social Security. If you receive benefits from the Railroad Retirement Board or the Office of Personnel Management, then much of the same things will be true. These benefit programs can also automatically deduct your Part B premium in much the same way that Social Security does.

Also Check: How Much Social Security Do You Get

How Do I Pay My Irmaa Part D And The Medicare Irmaa For Part B

Your Part B IRMAA is added to your Part B premium automatically the amount will be reflected in your monthly premium bill. Most people have their premiums automatically deducted from their Social Security or Railroad Retirement Board benefits each month. If you are not currently receiving retirement benefits each month, you can pay your bill online through your bank or financial institution, sign up for Medicare Easy Pay and have your payments automatically deducted from your checking or savings account, or mail your payment to Medicare each month.

IRMAA Part D payments are paid separately to Medicare, and you must pay them even if your employer or another third party pays your Part D plan premiums. Youâll get a Medicare Premium Bill each month for your Part D IRMAA and you can pay it in the same way you pay your Part B premiums. You do not pay it to your prescription drug plan.

Keep in mind that Medicare treats IRMAA payments the same as other premium bills, which means that if you donât make your payments on time each month, you could lose your coverage.

What About Part C And Part D

When Are Medicare Premiums Deducted from Social Security?

Youll pay your Part C or Part D bill directly to the insurance company. Each company has their own preferred methods, and not all companies accept all payment types.

Generally, you should be able to:

  • pay online with a debit or credit card
  • set up automatic payments
  • mail a check
  • use your banks automatic bill pay feature

You might also be able to set up a direct deduction for your retirement or disability payments.

You can contact your plan provider to find out what payment options are available. They can also let you know if theres anything you should be aware of with each payment type, such as added fees or time delays.

Read Also: Social Security Retirement Check

Medicare Part B Premiums

Beneficiaries enrolled in Medicare Part B must pay premiums .35 By law, individuals receiving Social Security benefits have their Medicare Part B premiums automatically deducted from their benefit checks.36 In 2017, approximately 75% of Medicare Part B enrollees had their Medicare Part B premiums deducted from their monthly Social Security benefit checks.37 Those not receiving Social Security are billed by Medicare,usually on a quarterly basis.38Individuals who are enrolled in Medicare Part B but do not receive Social Security may include individuals who are waiting to reach full retirement age and individuals who spent their careers in employment that was not covered by Social Security, including certain federal, state, and local government workers.

The standard monthly Medicare Part B premium in 2018 is $134.00. This premium applies to individuals with a modified adjusted gross income of $85,000 or less and to couples with a MAGI of $170,000 or less.42 Enrollees earning more than those respective amounts pay higher premiums based on their income, as shown in Table 1.

Table 1. Medicare Part B Premiums, 2018

Modified Adjusted Gross Income a


Notes: Each member of a couple pays the applicable premium. Lower thresholds are rounded up to the nearest dollar and upper thresholds are rounded down to the nearest dollar.

When Can I Enroll In Medicare Part B

If you are receiving retirement benefits before age 65 or qualify for Medicare through disability, generally youâre automatically enrolled in Medicare Part A and Part B as soon as you become eligible.

If you do not enroll during your initial enrollment period and do not qualify for a special enrollment period, you can also sign up during the annual General Enrollment Period, which runs from January 1 to March 31, with coverage starting July 1. You may have to pay a late enrollment penalty for not signing up when you were first eligible.

If youâre not automatically enrolled, you can apply for Medicare through Social Security, either in person at a local Social Security office, through the Social Security website, or by calling 1-800-772-1213 from 8AM to 7PM, Monday through Friday, all U.S. time zones.

Keep in mind that once you are both 65 years or older and have Medicare Part B, your six-month Medigap Open Enrollment Period begins. This is the best time to purchase a Medicare Supplement insurance plan because during open enrollment, you have a âguaranteed-issue rightâ to buy any Medigap plan without medical underwriting or paying a higher premium due to a pre-existing condition**. Once you are enrolled in Medicare Part B, be careful not to miss this one-time initial guaranteed-issue enrollment period for Medigap.

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How To Make Premium Payments

Your Part B Medicare premiums are billed directly through Medicare, while your Part C premiums are billed through the private insurance company associated with your Medicare Advantage plan. Heres how you pay Medicare and your private insurance company.

  • Premium Payments to Medicare: If you receive Social Security, Office of Personnel Management, or Railroad Retirement Board benefits, Medicare will automatically deduct your Part B premiums from your benefits check. If you dont receive these benefits, you will receive a bill called Notice of Medicare Premium Payment Due. You can then pay by mailing a check, using online banking services, or signing up for Medicares bill pay, which will automatically draft the premium from your bank account each month.
  • Part C Premium Payments to Private Insurance Companies: If your insurance company charges a premium for your Medicare Part C plan, you can set your payments to come from your Social Security benefits. But this is not an automatic action. You must submit a request to Social Security, and they have to approve your request before your Part C premium payments will be deducted. If you dont get Social Security, you can mail in a check or have your premium automatically drafted from your bank account.

How Much Is Taken Out Of Social Security For Medicare

Understanding Medicare Part B

If you receive Medicare health insurance benefits and Social Security retirement benefits at the same time, you can have your Medicare premiums automatically deducted from your Social Security check each month. This can save a lot of time and energy, as you wont have to worry about paying your premiums manually. This option is available for every part of Medicare, including private plans like Medicare Advantage and Medicare Part D.

This article explains everything you need to know to understand how much will be deducted from your Social Security benefits.

Read Also: When Do Medicare Benefits Kick In

Read Also: How To Find My Daughter’s Social Security Number

Can You Have Medicare Premiums Deducted From Your Social Security Check

  • You may be able to have your Medicare premiums deducted directly from your Social Security check each month. Learn more about how to have your Medicare premiums automatically deducted each month if youre eligible.

You may receive a Social Security check each month, and you likely pay monthly premiums for Medicare Part B, which is administrated by the Centers for Medicare & Medicaid Services and the Social Security Administration.

So can your Medicare premiums simply be deducted right from your Social Security check?

The answer is yes, Medicare premiums may be automatically deducted from your Social Security check each month, saving you the hassle of having to pay them manually. Below is a rundown of various Medicare premiums, how they relate to Social Security and some of the options you may have for paying your Medicare premiums.

Premiums Rise Well Above General Inflation

Part B premiums fluctuate considerably year to year. Generally, health care costs increase and therefore, Part B premiums rise as well. But there are years when the premium remains flat. And there were three times since the inception of Medicare that premiums decreased for some beneficiaries.

Looking at the last 10 years, Part B premium prices have fluctuated significantly:

Historic Medicare Part B premiums

Those who have been in Part B since 2013 have seen their premiums increase 62%. Overall inflation during the same time period is up only 13.5%.

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When Do You Have To Pay For Medicare

If you dont qualify for premium-free Part A coverage, youll need to pay a monthly premium. Youll also have to pay a premium if you sign up for Part B, which is optional.

If you receive Social Security benefits, youll have these premiums automatically deducted from your checks. Medicare will bill you directly if you arent collecting Social Security.

If you sign up for Parts C and D, youll also need to pay premiums for those plans. If you receive Social Security benefits, you can request that the premiums be deducted from your checks, but this wont happen automatically. If you dont receive benefits, youll get a bill from Medicare for Part D and from the insurer for Part C.

Requesting A Replacement Medicare Card

Is Medicare Part B Automatically Deducted From Social Security?

If you lose your Medicare card, you can request a replacement through Social Security. Youâll need a my Social Security account.

Once you create your account, you can sign in and select the âReplacement Documentsâ tab.

Then select âMail my replacement Medicare Card.â

Youâll get your new card in about 30 days, and itâll go to the address you have on file with Social Security. Donât worry â you can also update your mailing address in your my Social Security account.

For a temporary Medicare card, you can print one off at

Create an account there if you havenât already, and once youâre signed in, youâll see your Medicare Number, and you can even print off a copy of your card.

If youâre not comfortable with technology, you can always call Medicare at 1-800-MEDICARE for help.

Fun Fact: The average estimated 2020 monthly Social Security benefits for all retired workers is $1,503.

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Look Closely At Your Bill

The type of Medicare Premium Bill you get shows if youre at risk of losing your Medicare coverage for late payments:

If the box in the upper right corner says

It means

Medicare didnt get your full payment by the due date shown on the First Bill.Send in payment for the total amount due by the bills due date.
Delinquent BillMedicare didnt get your full payment by the due date shown on the Second Bill. If you dont pay the total amount due, youll lose your Medicare coverage.Send in payment for the total amount due by the bills due date so that you dont lose your Medicare coverage. This is the last bill youll get.

All Medicare bills are due on the 25th of the month. In most cases, your premium is due the same month that you get the bill. For example, Medicare runs the bill for April on March 27th. Youll get the bill in early April, and its due on April 25th.

Who Pays The Premium For Medicare Advantage Plans

You continue to pay premiums for your Medicare Part B benefits when you enroll in a Medicare Advantage plan . Medicare decides the Part B premium rate. The standard 2021 Part B premium is $148.50, but it can be higher depending on your income. On average, those who received Social Security benefits will pay a lesser premium rate.

Usually, you pay a separate monthly premium for a Medicare Part C plan. But not all Part C plans have monthly premiums. In addition to covering medically necessary procedures, Part C plans typically provide prescription drug coverage and other types of benefits such as dental and vision. The premium you may pay is used to cover the wider range of services available with Medicare Part C.

The Medicare-approved private insurance companies that offer Medicare Part C coverage decide what services the plans will cover, so monthly premiums vary from plan to plan and state to state. Insurance companies are only allowed to make changes to the premium rate once a year.

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B Standard Premium Increases In 2022

In 2021, most individuals with Medicare Part B paid $148.50 per month. In 2022, their monthly premium jumps to $170.10 per month an increase of $21.60 per month. This is the standard, or base, premium that all Part B enrollees pay. Higher-income people pay additional amounts .

Part B is the component of Medicare that helps retirees pay for physicians, outpatient services, durable medical equipment, and certain types of home health services. Services such as outpatient chemotherapy treatments and drugs, and dialysis, along with visits to a primary care physician or a specialist are covered under Part B.

When Medicare was signed into law in 1965, Part B was included. From the beginning, it has always carried a monthly premium that retirees and those who get Medicare due to certain disabilities are required to pay. The premiums are automatically deducted from Social Security payments once an individual is in both programs.

Who Is Eligible For Ssi

Are There Any Out-of-Pocket Costs for Medicare?

You can qualify for SSI if you:

  • are over 65
  • are legally blind
  • have a disability

As with all Social Security benefits, youll also need to be a United States citizen or legal resident and have limited income and resources. However, to apply for SSI, you dont need work credits.

You can receive SSI in addition to SSDI or retirement benefits, but it can also be a standalone payment. The amount you receive in SSI will depend on your income from other sources.

Social Security Disability Insurance is a type of Social Security benefit for those with disabilities or health conditions that prevent them from working.

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Medicare Part B Premiums For Those Held Harmless

Whether a beneficiary is held harmless or not depends on the amount of the standard Medicare Part B premium increase relative to the amount of his or her Social Security COLA in a given year.

The Medicare Part B premium an individual pays when held harmless may affect his or her future Medicare Part B premium amounts. For example, an individual held harmless in a year with no Social Security COLA may pay an increase in Medicare Part B premiums in a later year in which he or she is not held harmless, even if the standard Medicare Part B premium does not increase.

Table 2. Illustration of the Activation of the Hold-Harmless Provision for a Hypothetical Individual Over Time



CRS analysis based on data in 2018 Medicare Trustees Report and 2018 Social Security Trustees Report.

Notes: This chart assumes the individual is eligible for the hold-harmless provision .

a. COLA = Cost-of-living adjustment.

b. This amount is based on the average monthly Social Security benefit amount for a retired worker in 2008 , increased annually by the Social Security COLA.

c. Increase from the previous year.

d. The standard Medicare Part B premium is the premium amount paid by enrollees not held harmless and not subject to high-income-related premiums.

e. Increase from previous year. A negative value indicates a decreased premium.

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