What is the Medicare Part B Premium?
The Medicare Part BMedicare Part B is medical coverage for people with Original Medicare benefits. It covers doctor visits, preventative care, tests, durable medical equipment, and supplies. Medicare Part B pays 80 percent of most medically necessary healthcare services. premium is the monthly charge paid by beneficiaries for their outpatient medical care, services, and supplies. A beneficiary’s premium may be uplifted by an IRMAAIncome Related Month Adjustment Amount (IRMAA) is a Medicare Part B and Medicare Part D premium surcharge that is levied on high-income earners. The surcharge amount is based on a beneficiary's adjusted gross income. surcharge if their income is above a certain level.
Key Takeaways
- 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.
- 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 beneficiaryA person who has health care insurance through the Medicare or Medicaid programs. has, including premium-free Part A, Part C (Medicare Advantage), Part D, or MedigapMedicare Supplements are additional insurance policies that Medicare beneficiaries can purchase to cover the gaps in their Original Medicare (Medicare Part A and Medicare Part B) health insurance coverage..
- For most people, the Social Security Administration deducts their Medicare Part B premium from their monthly Supplemental Security Income (SSI) payments.
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.1Medicare.gov, “Medicare costs at a glance“, Accessed October 20, 2021
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)2Medicare.gov, “Pay Part A & Part B premiums“, Accessed October 20, 2021.
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 AMedicare Part A is hospital coverage for Medicare beneficiaries. It covers inpatient care in hospitals and skilled nursing facilities. It also covers limited home healthcare services and hospice care. or if they receive an IRMAA for Medicare Part DMedicare Part D plans are an option Medicare beneficiaries can use to get prescription drug coverage. Part D plans provide cost-sharing on covered medications in four different phases: deductible, initial coverage, coverage gap, and catastrophic. Each.... Beneficiaries will receive these bills by the 10th of the month.2Medicare.gov, “Pay Part A & Part B premiums“, Accessed October 20, 2021
How Do I Pay My Part B Premium?
Beneficiaries can use one of four options to pay their Medicare Premium Bill2Medicare.gov, “Pay Part A & Part B premiums“, Accessed October 20, 2021:
- 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.2Medicare.gov, “Pay Part A & Part B premiums“, Accessed October 20, 2021:
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.2Medicare.gov, “Pay Part A & Part B premiums“, Accessed October 20, 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. PremiumsA premium is an amount that an insurance policyholder must pay for coverage. Premiums are typically paid on a monthly basis. In the federal Medicare program, there are four different types of 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.3Medicare.gov, “Part B costs“, Accessed October 20, 20214Medicare.gov, “Medicare Savings Programs“, Accessed October 20, 2021
- 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 coverageCreditable coverage refers to health insurance or prescription drug benefits that meet Medicare's minimum qualifications necessary to avoid a penalty..1Medicare.gov, “Medicare costs at a glance“, Accessed October 20, 2021
Part B Penalty Waiver
If a beneficiary has been notified of a penalty to Part B premium, they can file for an appealAn appeal is an action you can take if you disagree with a coverage or payment decision made by Medicare, your Medicare Advantage plan, or your Medicare Part D plan. with proof of creditable coverage during the time they were not enrolled in Part B5Medicare.gov, “Medicare Forms“, Accessed October 20, 2021.
Part B Premiums and Medicare Advantage
If a beneficiary decides to join a Medicare Advantage planMedicare Advantage (MA), also known as Medicare Part C, are health plans from private insurance companies that are available to people eligible for Original Medicare (Medicare Part A and Medicare Part B). 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.6Medicare.gov, “Costs for Medicare Advantage Plans“, Accessed October 20, 2021
What If I Have Questions About My Bill?
Citations
- 1Medicare.gov, “Medicare costs at a glance“, Accessed October 20, 2021
- 2Medicare.gov, “Pay Part A & Part B premiums“, Accessed October 20, 2021
- 3Medicare.gov, “Part B costs“, Accessed October 20, 2021
- 4Medicare.gov, “Medicare Savings Programs“, Accessed October 20, 2021
- 5Medicare.gov, “Medicare Forms“, Accessed October 20, 2021
- 6Medicare.gov, “Costs for Medicare Advantage Plans“, Accessed October 20, 2021