3 Things to Know About Your Medicare Part B Premium

Medicare Part B (medical insurance) helps pay for services like outpatient care, home health care and some preventive care. While most people pay $0 for Medicare Part A (hospital insurance), you pay a monthly premium for Part B. Keep in mind these three things about how it works.

1. You still need to pay your Part B premium if you’re in a Medicare Advantage plan. Your Part B premium is part of any Medicare Advantage plan, because it covers the benefits you get from Part B. You need to have both Part A and B to qualify for Medicare Advantage so you would need to pay your Part B premium anyway.

   Your Part B premium will be automatically paid out of your benefit payments if you get them from:

   • Social Security
   • The Railroad Retirement Board
   • The Office of Personnel Management

   If you don't get any of these benefits, you can pay your Part B premium:

   • Online when you set up an account at Medicare.gov.
   • Directly from your bank account through its online bill payment service.
   • Using Medicare Easy Pay, a free service that automatically takes payments from your bank account.
   • By filling out the coupon that comes with your bill and mailing payment to:

   • Medicare Premium Collection Center
   • PO Box 790355
   • St. Louis, MO 63179-0355

2. People with higher incomes may pay more than the standard Part B premium. According to the Social Security Administration (SSA), the government usually pays 75% of the Part B premium, while you pay the remaining 25%.

   If the SSA finds you are in a higher income category, your monthly payment could be higher. It could be 35 - 85% of the total cost, depending on your most recent federal tax return.

   The income-related change has been in place since 2007. According to the Center for Medicare and Medicaid Services, it only affects about 7% of people with Medicare Part B. To learn more about these income-related adjustments, visit the Social Security website.

3. If you didn't get Part B when you were first eligible for Medicare, your Part B premium might also be higher. Unless you were eligible for a Special Enrollment Period, your premium may go up 10% for each 12-month period you could have had Part B but didn't sign up. This is a late-enrollment penalty, and you’ll have to pay it for as long as you have Part B.

   If you’re struggling to pay your Medicare Part B premium, a Medicare Savings Program can help.

   Visit the State of New Jersey Department of Human Services Division of Aging Services to see if you qualify.