Social Security is deducting your Medicare Part B premium because if you receive Social Security benefits, you're automatically enrolled and the premium (for outpatient care) is usually taken directly from your monthly check as a convenience, unless you're in a Medicare Savings Program or opted out. This is standard procedure for most beneficiaries; if you don't get Social Security, you'd get a bill from Medicare instead.
Yes, you can opt out of Medicare Part B, but you must have other creditable coverage (like employer insurance) to avoid late enrollment penalties if you re-enroll later; the process involves submitting a written request with Form CMS-1763 to Social Security, and coverage ends the month after you file. It's generally advisable to only drop Part B if you have strong employer group health coverage to prevent future penalties, as Part B covers doctor visits, outpatient care, and preventive services.
Yes, if you receive Social Security (or Railroad Retirement Board) benefits, your Medicare Part B premium is automatically deducted from your monthly benefit payment before you receive it, making payment easy and preventing missed bills. If you don't receive Social Security, you'll get a bill from Medicare and must pay directly.
Part B (Medical Insurance) costs. $185 each month ($202.90 in 2026) (or higher depending on your income). The amount can change each year. You'll pay the premium each month, even if you don't get any Part B-covered services.
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 are just two main ways to avoid paying the levy and they don't apply to many Australians:
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.
If you are receiving monthly benefits from Social Security, Medicare premiums are usually deducted automatically. If you are not receiving Social Security benefits, the Centers for Medicare & Medicaid Services will mail you a quarterly bill with instructions on how to pay your premium.
Medicare's Part B is optional and is financed largely by monthly premiums paid by individuals enrolled in the program. Participants may have this premium automatically deducted from their Social Security check. Since 2007, for the first time in the history of the Medicare program, the premium has been income based.
Everyone enrolled in Medicare must pay a monthly premium to the federal government for Part B. For those with higher incomes, this premium is indexed to your modified adjusted gross income.
The standard monthly premium for Medicare Part B enrollees will be $185.00 for 2025, an increase of $10.30 from $174.70 in 2024. The annual deductible for all Medicare Part B beneficiaries will be $257 in 2025, an increase of $17 from the annual deductible of $240 in 2024.
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.
To drop Part B (or Part A if you have to pay a premium for it), you usually need to send your request in writing and include your signature. Contact Social Security.
Is Medicare Part B mandatory for everyone? Medicare Part B is generally not mandatory, but you must enroll when you first become eligible unless you have creditable health coverage through a current employer.
If you don't get benefits from Social Security (or the Railroad Retirement Board), you'll get a premium bill from Medicare.
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.
If you earn more than the MLS income thresholds and only hold suitable private hospital cover for part of the financial year, you'll just have to pay the MLS for the days you weren't covered.
Each must also pay a 1.45% Medicare tax on all earnings. If you're self-employed, you pay the combined employee and employer amount. This amount is a 12.4% Social Security tax on up to $184,500 of your net earnings and a 2.9% Medicare tax on your entire net earnings.
To avoid Medicare surcharges (IRMAA), proactively manage your Modified Adjusted Gross Income (MAGI) by strategically withdrawing from tax-advantaged accounts (using Roths over Traditional IRAs), making charitable donations, spreading large income events, and delaying Social Security, while also appealing if a life event like retirement or divorce significantly lowers your income from the previous two years.
Medicare Part B Premium and Share of Cost
As a result, the Social Security Administration (SSA) began deducting the Medicare Part B premium from the Social Security checks of affected members, starting with the checks issued in May 2011.
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.
The Income Related Monthly Adjustment Amount (IRMAA) is an additional fee you may have to pay on Medicare Part B and Part D if you earn above a certain income level. When this fee applies to you for Part D, this fee will be charged to you monthly, and you must pay it directly to Medicare.