How Much Does Part B Coverage Cost?

Medicare Part B Cost

The standard monthly Part B premium amount in 2017 was $134 (or higher depending on your income). However, most people who get Social Security benefits paid less than this amount ($109 on average). This was because the monthly Part B premium increased more than the cost-of-living increase for 2017 Social Security benefits. You paid the standard premium amount (or higher) if:

  • You enrolled in Part B for the first time in 2017.
  • You don’t get Social Security benefits.
  • You’re directly billed for your monthly Part B premiums (meaning they aren’t taken out of your Social Security benefits).
  • You have Medicare and Medicaid, and Medicaid pays your premiums. (Your state will pay the standard premium amount of $134.)
  • Your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount ($85,000 if you file individually or $170,000 if you’re married and file jointly).

What is the Part B late enrollment penalty?

If you don’t sign up for Part B when you’re first eligible, you may have to pay a late enrollment penalty for as long as you have Part B. Your monthly premium for Part B may go up 10% for each full 12-month period that you could’ve had Part B, but didn’t sign up for it. If you’re allowed to sign up for Part B during a Special Enrollment Period, you usually don’t pay a late enrollment penalty. See pages 21–22.

Example: Mr. Smith’s Initial Enrollment Period ended September 30, 2014. He waited to sign up for Part B until March 2017 during the General Enrollment Period. His Part B premium penalty is 20%, and he’ll have to pay this penalty for as long as he has Part B. (Even though Mr. Smith waited a total of 30 months to sign up, this included only 2 full 12-month periods.)

How can I pay my Part B premium?

If you get Social Security or Railroad Retirement Board (RRB) benefits, your Medicare Part B (Medical Insurance) premium will get deducted from your benefit payment. If you’re a Civil Service retiree and NOT entitled to Social Security, your premiums will be deducted from your Civil Service annuity. If this isn’t happening, call 1-800-MEDICARE. If you don’t get these benefit payments, you’ll get a bill. If you choose to buy Part A, you’ll always get a bill for your premium. There are 4 ways to pay these bills:

  1. Mail your premium payments to:

Medicare Premium Collection Center
P.O. Box 790355
St. Louis, Missouri 63179-0355

If you get a bill from the RRB, mail your premium payments to:

Medicare Premium Payments
P.O. Box 979024
St. Louis, Missouri 63197-9000

  1. Pay by credit/debit card. To do this, complete the bottom portion of the payment coupon on your Medicare bill and mail it to the address above.
  2. Sign up for Medicare Easy Pay. This is a free service that automatically deducts your premium payments from your savings or checking account each month. Visit or call 1-800-MEDICARE (1-800-633-4227) to learn more and to find out how to sign up. TTY users can call 1-877-486-2048.
  3. Make an online bill payment. This is a more secure and faster way to make your payment without sending your personal information in the mail. Ask your bank if it allows customers to pay bills online. Not all banks offer this service and some may charge a fee. You’ll need to give the bank this information:
  • Account number: Your Medicare number without dashes (you’ll find this number on your red, white, and blue Medicare card).
  • Biller name: CMS Medicare Insurance
  • Remittance address:

Medicare Premium Collection Center
P.O. Box 790355
St. Louis, Missouri 63179-0355