If you are applying for Medicare, you’ll have premiums that need to be paid. There are several different payment options to consider. However, the these options vary depending on what type of Medicare premium you’re covering.
The team at Hyers & Associates is available to help you sort through any questions you might have regarding how to pay your premiums, and you are welcome to call us anytime for help – that’s what we are here for! Let’s break this question down by the different parts of Medicare coverage and the payment options that are available.
Your Medicare Part A covers your hospitalization. If you worked for an employer, they would have taken payroll deductions from your paycheck to cover your Medicare Part A coverage. You would have paid enough taxes to have your Medicare Part A accounted for if you worked for approximately 10 years.
If you did not have sufficient work time to qualify for this coverage you can purchase it from the government. If that is the case you can pay for your Medicare Part A through any of the options detailed below. Several are automatic so you’ll need not worry about them, or you can still get a bill and send a check to cover your premium. There is no right or wrong here, so choose what suits you best. Take a look at these options and choose the one that makes the best sense to you.
Medicare Part B covers your preventive medicine and routine doctor bills. Everyone has a monthly premium. If you receive a Social Security check, your Part B premiums will be automatically deducted from your check. You don’t need to do a thing; they’ll take care of everything automatically.
If you do not receive a Social Security check Medicare will bill you quarterly for your premium and you’ll need to make the payment yourself, using any of the methods detailed above. In other words, you can pay by check, automatic bill pay, credit card, or Medicare Easy Pay.
Your Medicare Part D prescription coverage is between a private insurance company and yourself. The choices available will depend on the company that you are getting your coverage through.
Most companies allow you to pay using Electronic Funds Transfer (EFT) directly from your bank, a coupon booklet (monthly or annual payments), or regular deductions from your Social Security check. Some will allow you to use a credit card as well. In our experience, it’s not advisable to deduct from your SS check. Chances are you will change your Part D plan somewhat regularly. Using the SS method can create hassles when you do change plans.
The same methods hold true for most Medicare Advantage plans. We find our clients select a EFT to keep current – and so that a bill does not get missed.
Paying your Medicare supplement premiums can be a little different. You have them deducted from your Social Security check (and most companies won’t allow for credit cards), but you can pay with a coupon booklet or EFT. Most insurance companies incentivize annual payments or EFT. You might see a $2 monthly reduction by using one of these two methods. There is usually a surcharge for quarterly, semi-annual, or monthly billing. It’s always a good idea to ask you agent about the cheapest ways to pay your Medicare supplement insurance.
There are many options, and depending on what type of premium you are paying the options may be different. So, if you have any questions you are welcome to give us a call. We are here to help you through the process and look forward to hearing from you.