Paul Sanchez
If you are enrolled in Medicare Part B but not collecting Social Security, you will be billed quarterly by Medicare and must pay electronically or by mail. If you are signed up for both Social Security and Medicare Part B, the Social Security Administration will automatically deduct the premium from your monthly benefit. However, some people may receive a letter from the Social Security Administration (SSA) stating that it will not deduct money for your Medicare prescription drug plan from your monthly benefits. This may be because the plan did not have enough time to organize an automatic premium deduction from your Social Security check, resulting in a delay or denial of deductions. Medicare Part A, which covers hospitalization, is free for anyone who is eligible for Social Security, even if they have not claimed benefits yet.
| Characteristics | Values |
|---|---|
| Medicare Part A | Free for anyone eligible for Social Security |
| Medicare Part B | Automatically deducted from Social Security |
| Medicare Part C | Optional, can be deducted from Social Security |
| Medicare Part D | Can be deducted from Social Security |
| Medicare Advantage | Optional, can be deducted from Social Security |
| Medicare Savings Programs | For people with low incomes and limited financial assets |
| S corporation compensation | Health insurance premiums are deductible |
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What You'll Learn
- Medicare Part B premiums are automatically deducted from Social Security benefits
- Medicare Part A is free for those eligible for Social Security
- Medicare Advantage and Part D plans are optional and require separate enrolment
- Medicare Savings Programs help low-income individuals with Part B premiums
- Medicare prescription drug coverage premiums are income-adjusted
Medicare Part B premiums are automatically deducted from Social Security benefits
If you receive Social Security retirement or disability benefits, your Medicare premiums can be automatically deducted. This automatic deduction generally applies to your Medicare Part B premium, which provides standard health insurance. However, you can also set it up for many Medicare Part C (Medicare Advantage) and Part D plans.
Medicare Part B premiums are typically deducted from any Social Security benefits you receive. If you are signed up for both Social Security and Medicare Part B, the Social Security Administration (SSA) will automatically deduct the Part B premium from your monthly benefit. The standard Part B premium for 2025 is $185 a month, an increase of $10.30 from the 2024 rate.
If you are enrolled in Part B but not collecting Social Security, you will be billed quarterly by Medicare and must pay electronically or by mail. You can pay your Medicare premium using a check, money order, credit card, debit card, or Health Savings Account (HSA) card. Payments made by mail take longer to process than online payments. If you don't get benefits from Social Security, you'll get a premium bill from Medicare.
Medicare Advantage (Part C) and Medicare Part D prescription drug plans are administered by private insurance companies that contract with Medicare. If you want to deduct your Medicare Advantage or Part D plan premiums from Social Security, you'll need to contact the company that administers your plan.
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Medicare Part A is free for those eligible for Social Security
Medicare Part A is free for individuals who are eligible for Social Security. This includes individuals who are 65 or older and have earned at least 40 Social Security work credits. Individuals who are not yet 65 may also be eligible for Medicare Part A if they have permanent kidney failure or receive disability benefits.
To be eligible for premium-free Part A, an individual must be entitled to receive Medicare based on their own earnings or those of a spouse, parent, or child. This means that the worker must have a specified number of quarters of coverage (QCs) and file an application for Social Security or Railroad Retirement Board (RRB) benefits. The exact number of QCs required depends on whether the person is filing for Part A on the basis of age, disability, or End Stage Renal Disease (ESRD). QCs are earned by paying payroll taxes under the Federal Insurance Contributions Act (FICA) during an individual's working years. Most people pay the full FICA tax, so the QCs they earn can be used to meet the requirements for both monthly Social Security benefits and premium-free Part A.
Individuals who are already receiving Social Security or RRB benefits at least four months before becoming eligible for Medicare and residing in the United States are also eligible for premium-free Part A. Additionally, individuals who are receiving regular dialysis treatments or have had a kidney transplant and meet certain conditions are eligible for premium-free Part A. These conditions include having worked the required amount of time under Social Security, the RRB, or as a government employee, or being the spouse or dependent child of someone who meets these requirements.
Medicare Part B, on the other hand, is the portion of Medicare that provides standard health insurance. The Social Security Administration will automatically deduct the premium for Part B from an individual's monthly benefit if they are signed up for both Social Security and Medicare Part B. Similarly, Medicare Advantage (Part C) and Medicare Part D prescription drug plans are administered by private insurance companies, and individuals have the option to have the premium deducted from their Social Security benefit or to pay the plan provider directly.
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Medicare Advantage and Part D plans are optional and require separate enrolment
Social Security (SS) may withhold money for your medical insurance premiums if you are signed up for both Social Security and Medicare Part B. In this case, the Social Security Administration will automatically deduct the premium from your monthly benefit. Medicare Part A, which covers hospitalisation, is free for anyone eligible for Social Security, even if they have not claimed benefits yet.
Medicare Advantage (Part C) and Medicare Part D prescription drug plans are optional and administered by private insurance companies that contract with Medicare. Medicare Advantage plans must cover everything that Original Medicare (Parts A and B) covers. They often include coverage for extra services and coverage from Part D prescription drug plans. Stand-alone Medicare Part D plans work alongside Original Medicare and cover take-home prescription medications.
If you want to enrol in Medicare Advantage or Part D plans, you have the option to have the premium deducted from your Social Security benefit or to pay the plan provider directly. To set up the automatic deduction, you'll need to contact the company that administers your plan. You can pay your Medicare Advantage or Part D bill directly to the insurer administering the plan, and each company has its own preferred methods.
If you are enrolled in Part B but not collecting Social Security, you'll be billed quarterly by Medicare and must pay electronically or by mail. It can take up to three months for your premium to be withheld from your Social Security payment after you request it. In the meantime, you will receive a bill from your drug plan and will have to pay the premiums by check or electronic funds transfer.
If you switch plans, your premium withhold may continue through January or February, and Social Security will refund any payments that are withheld. If you don't want to have your payments withheld from Social Security, you can pay your premiums online or by mail.
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Medicare Savings Programs help low-income individuals with Part B premiums
If you receive Social Security retirement or disability benefits, your Medicare premiums can be automatically deducted. The premium amount will be taken out of your check before it is sent or deposited. This automatic deduction generally applies to your Part B premium, but you can also set it up for many Part C and Part D plans.
Medicare Advantage (Part C) and Medicare Part D prescription drug plans are administered by private insurance companies that contract with Medicare. Medicare Advantage plans must cover everything that Original Medicare (parts A and B) covers, and they often include coverage for extra services and Part D prescription drug plans. Stand-alone Medicare Part D plans work alongside Original Medicare and cover take-home prescription medications. Medicare Advantage and Part D plans are optional.
Medicare Savings Programs (MSP) help people with limited income and resources pay for some or all of their Medicare premiums and may also pay their Medicare deductibles and co-insurance. In some cases, Medicare Savings Programs may also pay Medicare Part A (Hospital Insurance) and Medicare Part B (Medical Insurance) deductibles and co-insurance. These programs are federally funded but run by the states. In 2024, income limits to qualify for the programs in most states ranged from $1,275 to $1,715 a month for individuals and $1,724 to $2,320 a month for married couples. The limits are higher in Alaska and Hawaii.
There are four different types of Medicare Savings Programs: QMB, SLMB, QI-1, and QDWI. The different income limits for each program are listed on the Medicare website. For example, the resource limits for QMB, SLMB, and QI-1 Medicare Savings Programs are $11,160 for one person and $17,470 for a married couple. The resource limits for the QDWI program are $4,000 for one person and $6,000 for a married couple. The resource limits for the Low-Income Subsidy (LIS) program are $17,600 for one person and $35,130 for a married couple.
To qualify for a Medicare Savings Program, you must have income and resources below a certain limit. These limits go up each year. You may still qualify for these programs in your state even if your income or resources are higher than the federal limits listed. Some states do not count certain types or specific amounts of income or resources when deciding who qualifies.
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Medicare prescription drug coverage premiums are income-adjusted
If you qualify, there are programs that can lower your drug costs. Medicaid is a joint federal and state program that helps cover medical costs for some people with limited income and resources. Each state has different income and resource requirements that determine eligibility. Pharmaceutical Assistance Programs (sometimes called Patient Assistance Programs) are offered by some pharmaceutical companies to help pay for medications for people enrolled in Medicare drug coverage (Part D). Each company has different eligibility requirements to participate in their program.
Extra Help is a Medicare program that helps pay for drug costs. You automatically qualify for Extra Help if you qualify for Medicaid, one of the Medicare Savings Programs, or Supplemental Security Income (SSI) benefits from Social Security. If you don’t automatically qualify for Extra Help, you can apply. The Part D Low-Income Subsidy (LIS) program will expand to cover more drug costs for people with limited resources who earn less than 150% of the federal poverty level, starting in 2024. People who qualify for Extra Help will generally pay no more than $4.50 for each generic drug and $11.20 for each brand-name drug.
Medicare’s Limited Income Newly Eligible Transition (LI NET) is a Medicare program that provides temporary, immediate prescription drug coverage at the pharmacy counter to people with Medicare. Starting in 2023, people with Medicare Part D drug coverage now pay nothing out-of-pocket for even more vaccines. Your Part D plan won't charge you a copayment or apply a deductible for vaccines that the Advisory Committee on Immunization Practices recommends, including the vaccines for shingles and whooping cough.
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Frequently asked questions
If you are signed up for both Social Security and Medicare Part B, the Social Security Administration will automatically deduct the premium from your monthly benefit.
If you are signed up for Medicare Part C, you have the option to have the premium deducted from your Social Security benefit or to pay the plan provider directly.
If you are enrolled in Part B but not collecting Social Security, you’ll be billed quarterly by Medicare and must pay electronically or by mail. You can also choose to have your premiums withheld from Social Security.
