Why Would Social Security Stop Paying Medicare Part B?

Medicare Part B is the part of Original Medicare that covers outpatient services such as doctor visits, lab tests, preventive care, and durable medical equipment. Most people who enroll in Medicare Part B have to pay a monthly premium for this coverage. The standard Part B premium for 2023 is $164.90 per month, but some people may pay more or less depending on their income and other factors.

One of the ways to pay your Medicare Part B premium is to have it deducted from your Social Security benefit. This is a convenient option for many people who receive Social Security retirement, disability, or survivor benefits. However, there are some situations where Social Security may stop paying your Medicare Part B premium or deduct a different amount from your benefit. In this article, we will explain why this may happen and what you can do about it.

When Will Medicare Automatically Deduct Part B Premium From Social Security Benefit

If you are already receiving Social Security benefits when you sign up for Medicare Part B, your premium will automatically deduct from your benefit payment. You don’t need to do anything else to pay your Part B deductible. You will receive a notice from Social Security that tells you how much your premium is and how much your benefit will be after the deduction.

If you are not receiving Social Security benefits when you enroll in Medicare Part B, you will get a bill from Medicare every three months. You can choose to pay this bill by mail, online, or by phone. You can also sign up for Medicare Easy Pay, a free service that allows you to pay your Medicare premiums automatically from your checking or savings account.

If you start receiving Social Security benefits after you enroll in Medicare Part B, you can switch to having your premium deducted from your benefit. You will need to contact Social Security, railroad retirement board and request this change. You will also need to pay any Medicare bills that you receive until the deduction starts.

Why Would Social Security Stop Paying Your Medicare Premium?

There are several reasons why Social Security may stop deducting your Medicare Part B premium from your benefit or deduct a different amount than before. Some of the common reasons are:

• Your Social Security benefit is not enough to cover your Part B premium. This may happen if your benefit is reduced due to taxes, garnishments, or other adjustments. If your benefit is not enough to pay the full amount of your Part B premium, you will get a bill from Medicare for the difference. You will need to pay this bill by the due date or you may lose your Medicare coverage.
• Your income changes and affects your Part B premium. If you have a higher income, you may have to pay an Income-Related Monthly Adjustment Amount (IRMAA) on top of your standard Part B premium. This is an extra fee that some higher-income Medicare beneficiaries have to pay to help cover the costs of Medicare. IRMAA is based on your modified adjusted gross income (MAGI) from two years ago. For example, if your MAGI in 2021 was above a certain threshold, you will have to pay IRMAA in 2023. If your income changes and affects your IRMAA, Social Security will adjust your Part B premium deduction accordingly. You will receive a notice from Social Security that explains the change and how it affects your benefit.
• You enroll in a Medicare Advantage Plan that pays part or all of your Part B premium. Medicare Advantage Plans are private health plans that offer an alternative way to get Medicare coverage. Some Medicare Advantage Plans may be able to lower or no premiums for Part B or Part D (prescription drug coverage). If you enroll in such a plan, Social Security will stop deducting your Part B premium from your benefit or deduct a lower amount depending on how much your plan pays for you. You will receive a notice from Social Security that tells you how much your plan pays for your Part B premium and how much you need to pay if any.
• You qualify for a program that helps with your Part B premium. If you have limited income and resources, you may qualify for a Medicare Savings Program (MSP). MSPs are state programs that help pay some or all of your Medicare costs, including your Part B premium. If you qualify for an MSP, Social Security will stop deducting your Part B premium from your benefit or deduct a lower amount depending on how much the MSP pays for you. You will receive a notice from Social Security that tells you how much the MSP pays for your Part B premium and how much you need to pay if any.

What Can You Do If You Have Questions or Problems With Your Part B Premium Deduction?

If you have any questions or problems with your Part B premium deduction, you can contact Social Security or Medicare for assistance.

• To contact Social Security, call 1-800-772-1213 (TTY 1-800-325-0778) from Monday to Friday, 7 a.m. to 7 p.m. You can also visit your local Social Security office or go to the Social Security website.
• To contact Medicare, call 1-800-MEDICARE (1-800-633-4227; TTY 1-877-486-2048) 24 hours a day, 7 days a week. You can also visit the Medicare website.

Conclusion

Social Security may stop paying your Medicare Part B premium or deduct a different amount from your benefit for various reasons. Some of the common reasons are your income changes, your benefit is not enough, you enroll in a Medicare Advantage Plan that pays part or all of your premium, or you qualify for a program that helps with your premium. If this happens, you will receive a notice from Social Security that explains the change and how it affects your benefit. You will also need to pay any bills that you receive from Medicare or risk losing your coverage. If you have any questions or problems with your Part B premium deduction, you can contact Social Security or Medicare for help.

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FAQS

How are Medicare premiums paid if you have Social Security?

If you get Social Security benefits, your Medicare premiums deducted from Social Security payments.

What if I don’t get Social Security retirement benefits?

If you aren’t receiving Social Security, you’ll get a quarterly Medicare premium bill to pay by check, money order, or online payment.

What if I miss paying my Medicare premiums?

If you don’t pay your Medicare premiums for several months, you’ll lose your coverage. You’ll need to pay owed premiums to re-enroll.

Can I pay Medicare premiums from my checking account?

If you get a premium bill, you can pay your Medicare costs through automatic deductions from your bank account each month.

Are there penalties for not paying on time?

Yes, if you don’t sign up when first eligible, you may pay late enrollment penalties added to your Medicare premium costs.

Are there ways to get help paying premiums?

If you have limited income and resources, you may qualify for a Medicare Savings Program to help pay your Medicare premiums.

What if I’m applying after open enrollment closed?

If eligible for a special enrollment period, you can sign up outside open enrollment without penalty and get premium assistance quickly.

Where can I get details on my Medicare premium costs?

Check your MyMedicare.gov account or contact 1-800-MEDICARE to get personalized details on what premiums you are paying.

What if I get Social Security disability benefits?

If approved for SSDI, your Medicare Part B premium will be deducted from your disability check after 24 months of benefits.

Do Medicare premiums ever change?

Yes, the standard premium amounts can change each year and are usually increased by a small percentage year to year.