• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
MedicareWire

MedicareWire

Best Medicare plan, cost, and enrollment tools for seniors.

Speak with a Licensed Advisor[1]

1-855-728-0510 (TTY 711)

Mon-Sun, 8am to 11pm EST

  • Medicare Advantage
  • Special Needs
  • Medigap
  • Medicare Part D
  • More➲
    • Senior Dental Plans
    • Medicare Mistakes
    • What Does Medicare Cover?
    • Important Resources
    • Frequently Asked Questions
    • Medicare Glossary

Medicare Part A Premium

by Ethan Bynon, October 27, 2021

What is the Medicare Part A Premium?

Most beneficiaries get Medicare Part A benefits (inpatient coverage) premium-free based on the number of years they paid Medicare taxes. However, beneficiaries that did not pay Medicare taxes for the required 10 years pay a monthly premium for their Part A coverage.

Key Takeaways

  • Most Medicare beneficiaries do not pay a monthly premium for their Part A coverage.
  • If a beneficiary or their spouse did not pay Medicare taxes for the required 40 quarters (10 years) they must pay a monthly premium.
  • A premium penalty may apply for late enrollment in Part A.
  • If a beneficiary has a Part A premium, Medicare will send a monthly bill.
  • Medicare Part A coverage will be terminated if the monthly premium is not paid.
  • A Medicare Advantage plan does not negate the Medicare Part A premium.

How Much Is The Part A Premium?

For most beneficiaries, Medicare Part A benefits are available with no monthly premium. Part A benefits are funded through Medicare taxes. However, beneficiaries who did not pay Medicare taxes for a minimum of 40 quarters (10 years) will pay a monthly premium.1Medicare.gov, “Part A costs“, Accessed October 22, 2021

If a beneficiary does not qualify for premium-free Medicare Part A their monthly premium will be based on the number of quarters they, or their spouse, worked and paid Medicare taxes. A beneficiary that has worked and paid into Medicare for 7.5 years to 9.75 years (30 to 39 quarters) would pay $263 for their Part A premium, while beneficiaries who have worked and paid less than that will have a $478 Part A premium.1Medicare.gov, “Part A costs“, Accessed October 22, 2021

Beneficiaries are also eligible for premium-free Part A if:1Medicare.gov, “Part A costs“, Accessed October 22, 2021

  • They are already eligible for retirement from Social Security or Railroad Retirement Board.
  • They are eligible for Social Security or Railroad Retirement Board benefits but have not applied yet.
  • They or their spouse were Medicare-covered government employees.
  • They have received disability benefits from Social Security or Railroad Retirement Board for 24 months.
  • They have End-Stage Renal Disease (ESRD) and have met certain criteria.

Part A Late Enrollment Penalty

A beneficiary who does not qualify for premium-free Medicare Part A that does not enroll when first eligible will be assessed a Part A 10 premium penalty. The late enrollment penalty lasts for double the number of years they were not enrolled in Part A and did not have other have creditable coverage.2Medicare.gov, “Part A late enrollment penalty“, Accessed October 22, 2021

Medicare Part A Premium Billing?

When a Medicare beneficiary receives retirement benefits from Social Security, the Railroad Retirement Board, or Federal Employee Retirement, their Part A premium (if any) will automatically be deducted from their benefits.  If not, the beneficiary will receive a Medicare Premium Bill (CMS-500) in the mail. If a beneficiary does not have premium-free Medicare Part A or receives an IRMAA for Medicare Part D, they will be billed monthly. These bills will arrive by the 10th of the month.3Medicare.gov, “Pay Part A & Part B premiums”, Accessed October 22, 2021

How Does Medicare Handle Late Premium Payment?

When a beneficiary fails to pay their Medicare Part A premium bill on time, they will receive a subsequent from Medicare requesting the full Medicare premium payment. If the beneficiary fails to pay a Medicare premium bill three times in a row, as indicated by the Medicare Premium Bill Table below, their coverage will be terminated.3Medicare.gov, “Pay Part A & Part B premiums“, Accessed October 22, 2021

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 Medicare coverage will be lost. No further bills will be sent.

Part A Penalty Waiver/Appeal

If a beneficiary has been notified of a penalty to Part A premium, they can file for an appeal with proof of creditable coverage during the time they were not enrolled in Part A4Medicare.gov, “Medicare Forms“, Accessed October 22, 2021.

How To Get Help Paying For Part A Premiums

Medicaid and Medicare Savings Program (MSP) offer financial assistance to beneficiaries unable to afford Medicare Part A. Qualification is based on a beneficiary’s annual income.

Medicaid is a combined state and federal program that provides healthcare to families and individuals with income at or below the federal poverty level. People who qualify for both Medicare and Medicaid are dual-eligible and receive Part A premium, deductible, and copayment assistance.7Medicare.gov, “Medicaid“, Accessed October 25, 2021

Beneficiary’s with annual income up to 135 percent of the federal poverty level may qualify for a Medicare Savings Program (MSP). Two of the four MSPs provide assistance with Part A premiums:6Medicare.gov, “Medicare Savings Programs“, Accessed October 22, 2021

  • Qualified Medicare Beneficiary (QMB)
  • Qualifying Individual (QI)

Additional Insurance

While Medicare supplement insurance (Medigap) does not cover Part A premiums, all current plans (A, B, C, D, F, G, K, L, M, and N) cover some or all Medicare Part A deductibles and copayments. All current Medigap policies except Medigap plan A provide some coverage for Part A deductibles. And, all plans provide an additional 365 days of hospital coverage after a beneficiary has used their lifetime reserve days.7Medicare.gov, “How to compare Medigap policies“, Accessed October 22, 2021

Part A Premiums and Medicare Advantage

If a beneficiary that does not have premium-free Medicare Part A joins a Medicare Advantage plan they are required to continue paying their monthly Part A premium in addition to the plan’s premiums.6Medicare.gov, “Costs for Medicare Advantage Plans“, Accessed October 22, 2021

How To Get Help With Part D Questions

Any questions about your Medicare premium bill can be answered by a Medicare professional at 1-800-MEDICARE (1-800-633-4227). TTY: 1-877-486-2048.3Medicare.gov, “Pay Part A & Part B premiums“, Accessed October 22, 2021

Citations

  • 1
    Medicare.gov, “Part A costs“, Accessed October 22, 2021
  • 2
    Medicare.gov, “Part A late enrollment penalty“, Accessed October 22, 2021
  • 3
    Medicare.gov, “Pay Part A & Part B premiums“, Accessed October 22, 2021
  • 4
    Medicare.gov, “Medicare Forms“, Accessed October 22, 2021
  • 7
    Medicare.gov, “How to compare Medigap policies“, Accessed October 22, 2021
  • 6
    Medicare.gov, “Costs for Medicare Advantage Plans“, Accessed October 22, 2021

Primary Sidebar

Top 10 Medicare Mistakes in 2023

  • Thinking It’s Free!
  • Forgetting to Sign Up at Age 65
  • Not Signing Up If You Are Still Working
  • Joining an MA Plan if You Have Chronic Health Conditions
  • Getting the Same Plan as Your Spouse
  • Not Leveraging Assistance Programs
  • Choosing the Wrong Medigap Plan
  • Not Reviewing & Understanding Your Coverage
  • Going Out-of-Network in Your MA Plan
  • Costly Financial Moves when You Retire

Latest Blog Posts

How Do I Switch from Medicare Advantage to Medigap?

Get the Rate Increase History for Medigap Plans Before Buying

Why Can You be Denied a Medicare Supplement Plan?

Medicare Plan N vs Plan G: Which Supplement is Best for You?

How Does the Plan K Medicare Supplement Work?

9 Facts About High Deductible Plan G and How it Works

Medicare Supplement (Medigap) Plans: Coverage, Costs, and Eligibility

Is Plan F Still Available in 2023?

What is the Cheapest Medicare Option?

Paying for Drugs When You Have a Medigap Plan

Footer

About MedicareWire

  • About
  • Contact
  • Code of Conduct
  • MCMG Compliance
  • Privacy
  • California Consumer Privacy
  • Disclosure
  • Personally Identifiable Health Information

[1] Licensed Sales Agent

Licensed sales agent (“advisor”) services are provided by HealthCompare Insurance Services, Inc., MedicareWire’s trusted partner. Online enrollment services are provided by MedicareEnrollment.com, a HealthCompare affiliate. Read our full sales agent disclosure.

[2] Trademark Notice

MedicareWire uses legal U.S. trademarks to identify and describe Medicare and other insurance products for shoppers. See our full trademark use disclosure.

Medicare Plan Directories

  • Medicare Advantage
  • Special Needs Plans
  • Medigap Plans
  • Medicare Part D
  • Senior Dental Plans

Copyright © 2023 MedicareWire.com - All Rights Reserved
101 W Goodwin St #2487, Prescott, AZ 86302

MedicareWire.com is a non-government website and is not endorsed by the Centers for Medicare & Medicaid Services (CMS) or any other government agency. For official government information, please visit Medicare.gov (1-800-MEDICARE). By using MedicareWire.com you agree to our Terms of Service and Privacy Policy.

Get a FREE Medigap Rate Analysis... and Save!


We'll save you money with a FREE Medicare Supplement insurance rate analysis!

The only way to know if you are getting the best deal on your Medicare Supplement insurance is to see all rates from all insurance carriers. That's what we'll send you when you fill out the form below. We won't spam you, call you, or sell your information. That's a promise!

Complete this form and we'll email your free report in 1 business day or less.

  • This field is for validation purposes and should be left unchanged.