Most everyone on Medicare has some monthly expenses that need to be paid. Although Part A is generally without a premium (for 99% of all Medicare enrollees), Part B does have a premium. If you are collecting Social Security, the government will deduct the premium directly from your Social Security check. Some clients have called me because they don’t receive a hard copy explaining the deductions coming out of their Social Security check. The easiest way to see what your deductions are is to set up an account at SSA.gov where each month the system will clearly show what the deductions are and what they are for.
If you are still working and paying for your Part B you may be interested in the Easy Pay system. Social Security bills you quarterly for the cost of Part B which means you are getting fewer bills but for larger amounts of money. You can have the Part B deduction taken out of your checking account monthly by filing Form 5510, which is referred to as the Easy Pay form. This allows the government to automatically deduct the cost of Part B (and any IRMAA expense) directly from your checking account. Many people find paying monthly easier to budget. Original Medicare has a 90-day grace period before you will be disenrolled.
Part C (Medicare Advantage) / Part D
If one is enrolled in private insurance aside from Original Medicare (i.e. Part D prescription plan or a Medicare Advantage) plan that has a premium, a payment method must be selected at the time of enrollment. Which could be a deduction from Social Security, a deduction from a checking account or a direct bill/coupon book. Under current rules you can only change this election during the Annual Enrollment Period, October 15 through December 7 for the upcoming calendar year. So if your prefer a periodic bill or an automatic deduction the fall Annual Enrollment Period is the time to make any changes. Medicare Advantage and Part D plans have a 60-day grace period before disenrolling an enrollee.
Another option of supplemental plan to pair with Original Medicare is a Medigap plan. As these are private insurance plans and not contracted with Medicare, the premium cannot be deducted from Social Security. The premium can be paid for these plans by deduction from a checking account or by direct bill. You may change the payment method selection for Medigap at any time. Grace periods for Medigap are 31 days.
If you have any questions about Medicare premiums or any other Medicare questions, or if you just need help enrolling, please connect with one of our Member Agents. There are never any fees for their educational or enrollment services!