Ways to pay for Medicare

So you’ve chosen a Medicare plan and are ready to submit an application. Whether it’s a Medicare Supplement, Medicare Advantage, or Part D Prescription Drug Plan plan, you know about how much your monthly premium will be. But how will you pay for Medicare? There are a few different ways you can pay your Medicare premiums. However, your options will vary depending on the insurance carrier who provides the particular plan you choose to purchase.

Social Security Automatic Deduction

Available for: Medicare Advantage, Prescription Drug Plan

If you’re on a Medicare Advantage or Prescription Drug Plan, you can arrange for the premium to be pulled directly from your social security check each month. This is a popular option among Medicare recipients because you are far less likely to miss a payment; out of sight, out of mind!

It’s important to note that if you go this route, the insurance carrier needs to clear it with Social Security first. Although rare, there can be delays in this approval process, and it is possible to receive a rejection. For example, if you are late on Part B premium payments, they won’t allow you to deduct your premium from Social Security. If the premium deduction is delayed for any reason, you will see a larger deduction on the first month it’s taken out to account for the months you haven’t paid for yet.

Electronic Funds Transfer / Automatic Bank Draft

Available for: Medicare Advantage, Prescription Drug Plan, Medicare Supplement

Most carriers will allow you to pay your premium directly from your bank account each month on the due date. This is another great way to maintain peace of mind because there’s no room for error; you can rest assured that your premiums are being paid on time.

If you do choose this option, you’ll need to provide your bank account information when you submit your application. This will likely include your account number, routing number, and sometimes the address of your particular branch. In the case of Medicare Supplement plans, the carrier will only charge you if you’re approved for the plan.

Check

Available for: Medicare Advantage, Prescription Drug Plan, Medicare Supplement

If you decide not to utilize one of the automatic payment options, you can always pay by check. Depending on the carrier, they may send you a monthly bill or a coupon book with which you will pay your monthly premium by mail. Note that this option does require you to remember when your premium is due.

Related articles, tools, videos, and more

Renew has tons of great resources to help you figure out retirement.

Group Created with Sketch.
Not sure where to start?

Read our quick-start guide for help, including which questions you should be asking as you approach retirement.

Read our quick start guide

Group Created with Sketch.
Not sure where to start?

Read our quick-start guide for help, including which questions you should be asking as you approach retirement.

Read our quick start guide