Most Medicare Prescription Drug Plans charge a monthly fee that varies by plan. You pay this in addition to the Medicare Part B premium. If you belong to a Medicare Advantage Plan (Part C) or a Medicare Cost Plan that includes Medicare prescription drug coverage, the monthly premium you pay to your plan may include an amount for drug coverage.
Get your premium automatically deducted
Contact your drug plan (not Social Security) if you want your premium deducted from your monthly Social Security payment. Your first deduction will usually take 3 months to start, and 3 months of premiums will likely be deducted at once.
After that, only one premium will be deducted each month. You may also see a delay in premiums being withheld if you switch plans. If you want to stop premium deductions and get billed directly, contact your drug plan.
Your premium could be higher based on income
A small group—fewer than 5% of all people with Medicare—may pay a higher monthly premium for Medicare Part D coverage based on their income. This includes Part D coverage you get from a Medicare drug plan, or a Medicare Advantage Plan or Medicare Cost Plan that includes drug coverage.
If your modified adjusted gross income as reported on your IRS tax return from 2 years ago (the most recent tax return information provided to Social Security by the IRS) is above a certain limit, you'll pay an extra amount in addition to your plan premium. Usually, the extra amount will be deducted from your Social Security check.
See Social Security’s "Medicare Premiums: Rules for Higher Income Beneficiaries" for additional information.
Contact Social Security with questions
Contact Social Security if you have to pay an extra amount and you disagree (for example, you have a life event that lowers your income).
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