How can I pay my Medicare drug plan premium?
In general, there are 4 ways you can pay your Medicare drug plan premiums
- Deducted from your checking or savings account
- Charged to a credit or debit card
- Billed to you each month directly by the plan. (Some plans bill in advance for coverage the next month.)
- Withheld from your Social Security payment. Contact your plan (not Social Security) to ask for this payment option. If you choose this option, your first 2 months of premiums will be combined.
Example of Social Security Withholding:
Ms. Brown’s monthly drug plan premium is $25 and her coverage begins in January. Her first premium payment is collected in February for $50. It includes her premium for January and February. After February, only 1 month of premium payments ($25) will be withheld from her Social Security payment.
If you choose to have your premium withheld from your Social Security payment, and you have another insurer or benefit that pays part of your drug plan premium (such as an employer health plan or a State Pharmacy Assistance Program
(SPAP)), Social Security will withhold your entire monthly premium. Your drug plan will need to give you a refund for the amount your employer health plan or SPAP paid. Caution:
You may experience delays in getting your refund.
Mr. Anderson’s monthly drug plan premium is $20. His SPAP or employer pays $10 toward his premium.
- If Mr. Anderson gets his premium withheld from his Social Security payment, the full $20 will be withheld. The drug plan will have to give him a refund of $10 for the share of the premium paid by his SPAP or employer.
- If the drug plan bills Mr. Anderson directly, he will pay his share ($10) to his plan. His SPAP or employer will pay its share ($10) directly to his plan.
For more information about your Medicare drug plan premium or ways to pay it, contact your plan.
If you qualify for extra help
, some or all of your drug plan premiums may be covered. For more information, see pages 19–28 (How to Get Extra Help With Your Medicare Drug Plan Costs