Common Questions
Medicare Deductions From Social Security
- January 22, 2024
- Reviewed by John Krahnert
If you’re collecting Social Security retirement benefits and you’re enrolled in Medicare, you may be wondering why you haven’t received a bill for your monthly Medicare Part A and/or Part B premiums.
That’s because the two are intertwined. Most Medicare beneficiaries who collect Social Security or Railroad Retirement Board benefits have their premium deducted straight from their Social Security check. You should, however, still receive a monthly statement from Medicare notifying you of the retirement benefits deduction and amount.
Do seniors on Social Security have to pay for Medicare?
Most Medicare beneficiaries do not owe a premium for Medicare Part A.
Medicare Part B comes with a standard monthly premium, while higher income earners will pay more (see below for more information about this amount, known as the Income-Related Monthly Adjustment Amount).
Medicare Advantage (Medicare Part C) plan premiums vary. According to the Centers for Medicare & Medicaid Services, the average 2024 Medicare Advantage plan premium is $18.50, though plan premiums vary widely and may be different where you live.
All Medicare Supplement Insurance (Medigap) plans will require a monthly premium. Medicare Supplement plans are sold by private insurance companies, and some beneficiaries may use these plans to help pay their out-of-pocket Medicare costs like deductibles, copays and coinsurance.
It’s important to note that Medicare Advantage plans and Medicare Supplement plans are types of privately sold Medicare plans, and premiums for these types of plans aren’t automatically deducted from your Social Security benefits.
Why am I paying for Medicare out of my Social Security check?
The reason many beneficiaries have their Medicare premiums deducted from Social Security is because it saves the government from having to process millions of Medicare bills every month and reduces waste.
Automatic Medicare deductibles from your Social Security benefits also saves you from having to pay your bill every month, eliminating any chance of losing your Original Medicare (Part A and Part B) coverage due to delinquent payments.
Is it mandatory to have Medicare deducted from Social Security?
It is typically mandatory to have Medicare Part B premiums deducted from Social Security if you are receiving Social Security retirement benefits. Deductions made for Medicare Advantage or Medicare Part D prescription drug plan premiums are at the discretion of the insurance company and the beneficiary.
If your Medicare Part A or Part B premiums aren’t automatically deducted from Social Security, you’ll get a Medicare bill every month (for Part A) or every three months (for Part B).
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How much is deducted from Social Security for Medicare?
The amount that is deducted from your Social Security check for Medicare is equal to the amount of the Medicare premiums that are being deducted.
The standard Medicare Part B premium in 2024 is $174.70, which will be automatically deducted from your Social Security check.
If you are enrolled in a Medicare Advantage (Medicare Part C) or Medicare Part D plan, you may be able to have those premiums deducted from your Social Security check as well. You will have to check with your plan provider to see if an automatic deduction is available as an option.
How much do I pay for Medicare Part B?
Most Medicare Part B beneficiaries pay the standard premium of $174.70 per month in 2024. Higher income earners will pay more because of a surcharge called the Income-Related Monthly Adjustment Amount, or IRMAA. IRMAA is based on the income reported on your taxes from two years prior.
| 2022 Individual tax return | 2022 Joint tax return | 2022 Married and separate tax return | 2024 Part B premium |
|---|---|---|---|
|
$103,000 or less |
$206,000 or less |
$103,000 or less |
$174.70 |
|
More than $103,000 and up to $129,000 |
More than $206,000 and up to $258,000 |
N/A |
$244.60 |
|
More than $129,000 up to $161,000 |
More than $258,000 up to $322,000 |
N/A |
$349.40 |
|
More than $161,000 up to $193,000 |
More than $322,000 up to $386,000 |
N/A |
$454.20 |
|
More than $193,000 up to $500,000 |
More than $386,000 up to $750,000 |
More than $103,000 up to $397,000 |
$559.00 |
|
More than or equal to $500,000 |
More than or equal to $750,000 |
More than or equal to $397,000 |
$594.00 |
What if I have delayed my Social Security benefits?
If you are enrolled in Medicare but are not yet collecting Social Security because you have chosen to delay your benefits, you will still the same Medicare premiums as you would if you were collecting Social Security. The only difference is that you won’t have any Social Security income from which your Medicare premiums can be deducted.
Instead, you will have to pay your Medicare premiums manually. There are a few different ways to do this.
- Pay online using your Medicare account.
- Use Medicare Easy Pay to have your premiums automatically withdrawn from your checking or savings account.
- Use your bank’s online bill payment service.
- Pay through the mail with a check, money order, credit card or debit card. You’ll find the payment form to fill out at the bottom of your bill and your bill will also come with a return envelope.
At what age is Social Security no longer taxed?
Social Security may be taxed as income no matter your age. Depending on your income, you will typically pay federal taxes on either 50% or 85% of your benefits.
There is some tax relief for low-income earners, however. If you file your taxes in 2024 as an individual and report a total income of less than $25,000, you will not have to pay taxes on your Social Security benefits. For joint filers, the limit is $32,000. (These limits are subject to change every year.)
What is the 10-year rule for Social Security?
The 10-year rule states that once you have worked and paid Social Security taxes for 10 years, you will be eligible to collect Social Security benefits once you reach the appropriate age. The 10 years do not have to be consecutive.
You may also qualify for partial benefits if you were married to someone who is eligible for Social Security benefits.
Learn more about Medicare Advantage plans, which combine Part A and Part B benefits into a single plan and can include more benefits that Original Medicare doesn't cover.
About the author
Christian Worstell is a senior Medicare and health insurance writer with MedicareAdvantage.com. He is also a licensed health insurance agent. Christian is well-known in the insurance industry for the thousands of educational articles he’s written, helping Americans better understand their health insurance and Medicare coverage.
Christian’s work as a Medicare expert has appeared in several top-tier and trade news outlets including Forbes, MarketWatch, WebMD and Yahoo! Finance.
Christian has written hundreds of articles for MedicareAvantage.com that teach Medicare beneficiaries the best practices for navigating Medicare. His articles are read by thousands of older Americans each month. By better understanding their health care coverage, readers may hopefully learn how to limit their out-of-pocket Medicare spending and access quality medical care.
Christian’s passion for his role stems from his desire to make a difference in the senior community. He strongly believes that the more beneficiaries know about their Medicare coverage, the better their overall health and wellness is as a result.
A current resident of Raleigh, Christian is a graduate of Shippensburg University with a bachelor’s degree in journalism.
If you’re a member of the media looking to connect with Christian, please don’t hesitate to email our public relations team at Mike@tzhealthmedia.com.
