Medicare Part A is typically premium-free ($0/month) for individuals 65 or older who paid Medicare taxes for at least 10 years (40 quarters). While Part A premiums may be free, deductibles and copays still apply. Additionally, many Medicare Advantage Plans (Part C) offer $0 monthly premiums, and most Medicare-covered preventative services are free.
Part A is free if you worked and paid Medicare taxes for at least 10 years. You may also be eligible because of your current or former spouse's work.
No one is automatically exempt from Medicare Part B premiums, but many people avoid paying them by having other creditable coverage (like employer plans when still working), qualifying for Medicare Savings Programs (MSPs) through Medicaid due to low income, or having certain disabilities that qualify them for premium assistance. Those automatically enrolled in Medicare who don't need Part B right away (e.g., due to employer coverage) can delay enrollment without penalty.
You can avoid paying Medicare Part B premiums by delaying enrollment if you have creditable employer coverage (your own or spouse's job with 20+ employees) until that coverage ends (within 8 months to avoid penalties), or by qualifying for a Medicare Savings Program (MSP) to have state/federal funds pay for it due to low income. Other ways to save include using HSA funds, appealing high Income-Related Monthly Adjustment Amounts (IRMAA) for life changes, or enrolling on time during your Initial Enrollment Period.
There could be several reasons why Social Security stopped withholding your Medicare Part B premium. One common reason is that your income has exceeded the threshold for premium assistance. Another reason could be that there was a mistake or error in your records.
Premium-Free Medicare Part A Based on Age
To be eligible for premium-free Part A on the basis of age: A person must be age 65 or older; and. Be eligible for monthly Social Security or Railroad Retirement Board (RRB) cash benefits.
The cost of Medicare Part C plans (also known as Medicare Advantage plans) varies depending on where you live and the plan you choose. Some plans have $0 monthly premiums. You still have to pay your Part A and Part B monthly premiums.
Your CalPERS health coverage will automatically be canceled the first day of the month after you turn 65. Review Cancellation of CalPERS Health Coverage for information on reinstating your health coverage.
If you have a Medicare Part D plan, you may pay premiums, deductibles, copayments, and/or coinsurance for your drug coverage. Learn more about the out-of-pocket costs you might pay for a Medicare Part D prescription drug plan in 2026.
If you can't afford Medicare Part B, you should immediately contact your State Medical Assistance (Medicaid) office to apply for a Medicare Savings Program (MSP), which can pay your Part B premiums and other costs if you have low income/resources, or explore options like Supplemental Security Income (SSI), or even look into Medicaid itself for comprehensive help, as delaying Part B can lead to lifetime penalties.
Exemptions from Medicare tax apply mainly to specific employment situations, like certain religious objectors (Amish/Mennonite) and some foreign workers (students, temporary scholars). U.S. citizens working for foreign governments or specific state/local employees hired before 1986 (with public pension plans) can also be exempt, as can students working for their universities under certain conditions. Generally, if you have earned income and aren't in one of these categories, you'll pay the Medicare tax.
You can avoid paying Medicare Part B premiums by delaying enrollment if you have creditable employer coverage (your own or spouse's job with 20+ employees) until that coverage ends (within 8 months to avoid penalties), or by qualifying for a Medicare Savings Program (MSP) to have state/federal funds pay for it due to low income. Other ways to save include using HSA funds, appealing high Income-Related Monthly Adjustment Amounts (IRMAA) for life changes, or enrolling on time during your Initial Enrollment Period.
If you have Original Medicare and just need a plan for prescription medications, Medicare Part D is the best choice. When you require more coverage for dental, vision, or prescription drugs, Medicare Part C plans provide more options to fit your healthcare needs.
Here are some of the biggest Medicare mistakes to avoid:
Californians with an annual income of less than $21,597 for an individual or $29,187 for a couple are eligible for a Medicare Savings Program. These programs provide help from the State of California to pay for your Medicare premiums, and sometimes your deductibles and copayments.
Medicare Part B helps cover medical services like doctors' services, outpatient care, and other medical services that Part A doesn't cover. Part B is optional.
For 2026, the standard Medicare Part B premium deducted from most Social Security checks is $202.90 per month, with higher premiums for higher incomes and a separate annual deductible of $283; some beneficiaries pay less due to the hold harmless rule. Your exact amount depends on your income from two years prior, and you'll also pay 20% coinsurance for most services after meeting the deductible.
In 2025, the standard Medicare Part B premium is $185 per month, with an annual deductible of $257, though higher-income earners pay more (Income-Related Monthly Adjustment Amount or IRMAA), and some with Social Security benefits pay less due to the "hold harmless" rule.
For adults age 65 and older, Medicare provides important health care coverage. But it's not free; there are out-of-pocket costs to consider. For example, while most people won't pay a premium for Medicare Part A (Hospital Insurance), Part B (Medical Insurance) does have a monthly premium.