Do you know how to pay your Medicare premiums?
Once you finalize your Medicare, the next step is to understand how you pay for it.
This is one of the biggest pain points for people because it doesn’t necessarily work like traditional employer health insurance premiums that are taken out of your paycheck.
And very few people explain this to you when you sign up for Medicare.
If you are like some of our clients who frequently vacation or have a second home, it’s crucial to understand how the bills work so you don’t miss one.
To know how you are billed you first need to confirm if you are drawing your Social Security Retirement Benefit.
If you are drawing your Social Security Retirement Benefit, you will have your Medicare Part B premium, and any income-related monthly adjustment amount (IRMAA), deducted automatically from your Social Security check.
If you are not currently drawing Social Security there are several payment options available. But if you fall into this category, you WILL receive a “Medicare Premium Bill.”
This bill only covers Medicare Part A (if applicable) and Medicare Part B.
Part C, Part D Prescription, and supplemental insurance are billed separately.
Medicare Part A and B is billed on a quarterly basis, and premiums are due by the 25th of the month. Medicare will issue a second billing if the payment is not received on time. A delinquent billing notice will be issued if payment is not remitted by the due date listed on the second billing notice.
It is possible to lose your Medicare coverage due to non-payment. So it is imperative to pay close attention to billing notices and make timely payments.
Aside from Social Security deduction, there are four payment options.
- Check
- Money Order
- Credit or Debit Card
- Automatic Clearing House from your checking account
Medicare will accept a check or money order for the premium amount due each quarter, mailed to the address listed on your payment coupon.
There is an area on the Medicare premium payment coupon to complete credit or debit card information if that is your preferred method of payment. The completed form should be mailed to the same address.
Automatic Clearing House (ACH) forms are available if you would like to have your premiums deducted on a monthly basis. Payments are usually withdrawn on the 20th of the month.
“Medicare Easy Pay” is a free service offered by Medicare that will deduct your premiums from either a checking or savings account, again occurring around the 20th of the month. This requires an authorization form to be completed and returned to Medicare.
Based on the hundreds of clients we have worked with, I recommend you set up the ACH if your finances allow it. This way you can enjoy your vacation and not worry about your Medicare bills. And we find this to be the easiest way to pay for Medicare.
For more information regarding your Medicare premium payment options, visit:
https://www.medicare.gov/your-medicare-costs/paying-parts-a-and-b/pay-parts-a-and-b-premiums.html
