Skip to content
Are Medicare Premiums Paid in Advance?
When do I pay for my Medicare premiums?
If you enroll in Medicare before you begin collecting Social Security benefits, your first premium bill may surprise you. It will be due, paid in full, 1 month before your Medicare coverage begins.
This bill will typically be for 3 months’ worth of Part B premiums. So, it’s known as a quarterly bill.
If you have original Medicare (parts A and B), you’ll continue to receive bills directly from Medicare until you start collecting either Social Security or RRB benefits. Once your benefits begin, your premiums will be taken directly out of your monthly payments.
You’ll also receive bills directly from your plan’s provider if you have any of the following types of plans:
- Medicare Part C, also known as Medicare Advantage
- Medicare Part D, which is prescription drug coverage
- Medigap, also called Medicare supplement insurance
The structure of these bills and their payment period may vary from insurer to insurer.
When to pay for original Medicare
If you have original Medicare and aren’t yet collecting Social Security, you’ll receive a bill from Medicare either monthly or once every 3 months in these cases:
- If you don’t have premium-free Part A, you’ll receive a monthly bill for your Part A premium.
- If your income exceeds a certain amount, you’ll receive a monthly bill for your Part D income-related monthly adjustment amount (IRMAA) surcharge.
- If you have only Part B, the bill for your Part B premium will be sent quarterly and will include the cost of 3 months’ worth of premiums.
If you’re already collecting Social Security or RRB benefits, your monthly Medicare premium will be automatically deducted from your benefit amount.
When to pay for Part C, Part D, and Medigap
Medicare Part C, Part D, and Medigap are all purchased from private insurers. The way you’re billed for monthly premiums may vary based on your insurer. In some cases, you may receive a monthly bill. Other insurers may give you the option of paying quarterly.
Medicare Advantage (Part C) plans may or may not have a monthly premium. This is determined by the plan you choose. Medicare Part D and Medigap plans typically do have monthly premiums.
Once you start receiving Social Security benefits, the monthly premiums for your Part C, Part D, or Medigap plan can be deducted from your benefits. However, this process isn’t automatic — you’ll need to contact the plan provider to set up automatic payment.
It may take 3 months or longer until your premiums begin to be automatically deducted from your Social Security benefits. Talk with your plan provider to find out whether you should continue to pay your usual premium amount during this time or withhold payment.
Sometimes, not paying during this lag time may result in a large, single withdrawal of benefit funds the first time your premiums are deducted.
How are Medicare premiums paid?
You can pay your Medicare bill in several ways. We’ll go over how to pay for each part of Medicare in the sections below.
Original Medicare and Part D IRMAA
If you receive a Medicare bill for Part B premium and Part D IRMAA costs, you may pay it in these ways:
- Medicare’s Easy Pay system lets you pay your Part A or Part B premium electronically. You can pay manually or set up automatic payments to be taken directly from a checking or savings account.
- You can pay with a debit card or credit card by writing your card number directly on your bill and mailing it in.
- You can pay with a check or money order.
What about Part C, Part D, and Medigap?
You pay these bills directly to your plan provider. Each company may have a preferred method of payment.
Your insurer will let you know all your options for paying your bill. These may include:
- autopay, which automatically deducts the amount from your checking or savings account on a specific date each month
- paying by check
- paying by debit or credit card, either online or by mail
What if I still need more help?
If you have any additional questions about making payments to either Medicare or to a private insurer, here are some resources that can help:
- Medicare (800-633-4227)
- Social Security (800-772-1213)
- State Health Insurance Assistance Programs (877-839-2675)
What are the costs of Medicare?
Each part of Medicare has different out-of-pocket costs associated with it. These costs include:
- monthly premiums
- deductibles
- copayments
- coinsurance
Medicare Part A costs
Most people are eligible for premium-free Part A. To be eligible, you or your spouse must have worked at least 40 calendar quarters (10 years) and paid Medicare taxes during that time. If you’re not eligible for premium-free Part A, you can choose to purchase it. The monthly premium cost for Part A ranges from $259 to $471 based on your work history.
Medicare Part B costs
Most people pay the standard Part B premium. In 2021, that amount is $148.50.
If the modified adjusted gross income you reported on your taxes from 2 years ago is higher than a certain limit, though, you may need to pay a monthly IRMAA in addition to your premium. The maximum you can expect to pay for your Part B premium is $504.90 per month.
Medicare Part B also has out-of-pocket costs associated with it. These include an annual deductible of $203. After you’ve met your deductible, you’ll pay coinsurance on most services that Medicare Part B covers. This amount is 20 percent of the Medicare-approved costs of services and supplies.
Part C, Part D, and Medigap costs
Medicare Part C, Part D, and Medigap plans all have varying costs and coverage options. Some have monthly premiums, while others do not. These plans also have varying costs for coinsurance and copays. All the costs are based on the plan you choose, as well as the area where you live.
The takeaway
If you aren’t receiving Social Security or RRB benefits, you’ll get a bill from Medicare for your Part B premium and your Part A premium (if you don’t have premium-free Part A). Part D IRMAA charges may also be included in this bill. These costs are due in advance for the coming month or months.
If you have Part C, Part D, or Medigap, your insurer will bill you directly for your monthly premiums. These may be due in advance, either monthly or quarterly.
If you’re already receiving retirement benefits, your premiums will be automatically deducted from your monthly check.