Medicare Part B Premium
What is the Medicare Part B Premium?
The Medicare Part B premium is the monthly charge beneficiaries pay for their outpatient medical care, services, and supplies. An IRMAA surcharge may uplift a beneficiary’s premium if their income is above a certain level.
[keytakeaways]
- The Medicare Part B premium provides beneficiaries access to outpatient medical services.
- The Medicare Part B premium adjusts annually.
- A premium penalty may be assessed for late enrollment (you can apply for a Medicare Part B penalty waiver).
- Medicare Part B coverage will be terminated if the monthly premium is not paid.
- The Medicare Part B premium must be paid regardless of any other coverage a beneficiary has, including premium-free Part A, Part C (Medicare Advantage), Part D, or Medigap.
- For most people, the Social Security Administration deducts their Medicare Part B premium from their monthly Supplemental Security Income (SSI) payments.
[/keytakeaways]
How Much is the Part B Premium?
Most beneficiaries will only pay the standard premium amount for Part B ($158.50 in 2022). They may be required to pay an Income Related Monthly Adjustment Allowance (IRMAA) if their modified adjusted gross earnings exceed a certain amount. Medicare uses the modified adjusted income from the beneficiary’s IRS tax return two years prior.[mfn referencenumber=1]Medicare.gov, “Medicare costs at a glance“, Accessed October 20, 2021[/mfn]
2022 Part B IRMAA Thresholds (Preliminary Numbers)
| If yearly income in 2020 (for what the beneficiary pays in 2022) was | They pay each month (in 2022) | ||
|---|---|---|---|
| File individual tax return | File joint tax return | File married & separate tax return | |
| $91,000 or less | $182,000 or less | $91,000 or less | $158.50 (Standard) |
| above $91,000 up to $114,000 | above $182,000 up to $228,000 | Not applicable | $221.90 (Standard*1.4) |
| above $114,000 up to $142,000 | above $228,000 up to $284,000 | Not applicable | $317.00 (Standard*2) |
| above $142,000 up to $170,000 | above $284,000 up to $340,000 | Not applicable | $412.10 (Standard*2.6) |
| above $170,000 and less than $500,000 | above $340,000 and less than $750,000 | above $91,000 and less than $412,000 | $507.20 (Standard*3.2) |
| $500,000 or above | $750,000 and above | $412,000 and above | $538.90 (Standard*3.4) |
How Do I Get My Medicare Bill?
Medicare will mail beneficiaries a Medicare Premium Bill (CMS-500)[mfn referencenumber=2]Medicare.gov, “Pay Part A & Part B premiums“, Accessed October 20, 2021[/mfn].
How Often Will I Get a Medicare Bill?
Beneficiaries will receive a Medicare Premium Bill every three months if they are only paying a Part B premium. They will receive a Medicare Premium Bill every month if they also purchased Medicare Part A or if they receive an IRMAA for Medicare Part D. Beneficiaries will receive these bills by the 10th of the month.[mfn referencenumber=2]Medicare.gov, “Pay Part A & Part B premiums“, Accessed October 20, 2021[/mfn]
How Do I Pay My Part B Premium?
Beneficiaries can use one of four options to pay their Medicare Premium Bill[mfn referencenumber=2]Medicare.gov, “Pay Part A & Part B premiums“, Accessed October 20, 2021[/mfn]:
- Pay online with their secure Medicare account.
- Pay directly from their checking or savings accounts with their bank’s online billing service.
- Use the free Medicare Easy Pay service to automatically withdraw what they owe from their checking or savings account each month.
- Mail a check, money order, or credit card information to Medicare.
What If My Part B Premium Payment is Late?
Medicare Premium Bill payments are due by the 25th of the month beneficiaries received them. They will receive a second bill if their first bill payment is not received on time, which will include the owed amounts as well as the next bill’s premium.[mfn referencenumber=2]Medicare.gov, “Pay Part A & Part B premiums“, Accessed October 20, 2021[/mfn]:
Beneficiaries will be issued a delinquent bill if they fail to pay the second bill’s full amount by the 25th. If they fail to pay the delinquent bill by the following month, their Medicare coverage will be terminated.[mfn referencenumber=2]Medicare.gov, “Pay Part A & Part B premiums“, Accessed October 20, 2021[/mfn]:
Medicare Premium Bill Table
The upper right corner of the Medicare Premium Bill states |
It means |
Do this |
|---|---|---|
| This is not a bill | Only received by beneficiaries using Medicare Easy Pay. Premiums owed are withdrawn from their bank account on the 20th of each month. | Nothing. |
| First Bill | This is the initial bill for the beneficiary’s premiums. | Submit payment for the amount due by the 25th of the month. |
| Second Bill | The beneficiary’s premiums were not paid on time as stated on the First Bill. | Submit payment for the amount due by the 25th of the month. |
| Delinquent Bill | The beneficiary’s premiums were not paid on time as stated on the bill. Second Bill. If this bill is not paid in full by the 25th of that month, the beneficiary will lose their Medicare coverage. | Submit payment for the amount due by the 25th of the month, or the beneficiary will lose their Medicare coverage. No further bills will be sent. |
What Programs Help With My Part B Premium?
Benefits received from the following programs will automatically be deducted from the beneficiary’s Part B premium. They will receive a Medicare Premium Bill for any remaining premium after the deductions.[mfn referencenumber=3]Medicare.gov, “Part B costs“, Accessed October 20, 2021[/mfn][mfn referencenumber=4]Medicare.gov, “Medicare Savings Programs“, Accessed October 20, 2021[/mfn]
- Social Security
- Railroad Retirement Board
- Office of Personnel Management
- Medicare Savings Programs
Part B Late Enrollment Penalty
Beneficiaries have to pay a late enrollment penalty if they don’t enroll in Part B when they’re first able. Their Part B premium will increase by ten percent for each full twelve-month period they were eligible for Part B without creditable coverage.[mfn referencenumber=1]Medicare.gov, “Medicare costs at a glance“, Accessed October 20, 2021[/mfn]
Part B Penalty Waiver
If a beneficiary has been notified of a penalty to Part B premium, they can file for an appeal with proof of creditable coverage during the time they were not enrolled in Part B[mfn referencenumber=5]Medicare.gov, “Medicare Forms“, Accessed October 20, 2021[/mfn].
Part B Premiums and Medicare Advantage
If a beneficiary decides to join a Medicare Advantage plan after enrolling in Part B, they will still have to pay their Part B premium along with any premiums for their Advantage plan. There are Advantage plans that provide a Part B premium reduction, which can partially or fully pay for a beneficiary’s Part B premium.[mfn referencenumber=6]Medicare.gov, “Costs for Medicare Advantage Plans“, Accessed October 20, 2021[/mfn]
What If I Have Questions About My Bill?