Paying your Medicare premiums should not feel like another chore on your calendar. Yet for many people, keeping track of due dates, writing checks, and worrying about whether a payment cleared creates unnecessary stress. Missing a payment can have serious consequences, including late fees, penalties, or even the loss of coverage.
Fortunately, Medicare makes it easy to remove this task from your routine. By setting up automatic payments, your premiums are handled for you each month. This eliminates the need for reminders, reduces the risk of mistakes, and gives you the peace of mind that your coverage will remain active.
In this post, we will explain the two primary ways to set up Medicare auto-pay, what each option includes, and how choosing the right method can simplify your finances and protect your healthcare.
Option 1: Automatic Deduction from Social Security or Railroad Retirement
If you’re receiving Social Security or Railroad Retirement Board (RRB) benefits, this is the easiest route. Your Medicare Part B premium, and Part D IRMAA if applicable, will automatically be deducted from your monthly benefit check.
There’s nothing to set up—this usually happens by default. Once your Medicare Part B coverage begins, your premiums are simply subtracted before your check is deposited.
What’s covered:
- Part B premium
- Part D IRMAA (if you’re subject to it)
Why it works:
It’s seamless and 100% automatic. You don’t have to fill out any forms or track payment due dates. Your coverage stays active with no extra effort.
Option 2: Medicare Easy Pay (Automatic Bank Draft)
If you’re not collecting Social Security or prefer to have Medicare withdraw directly from your bank account, you can enroll in Medicare Easy Pay. This allows Medicare to deduct your monthly premium from your checking or savings account automatically.
How to set it up:
- Complete Form SF-5510, titled “Authorization Agreement for Preauthorized Payments.” This form is used to start, stop, or change automatic monthly premium payments.
- You can access the SF-5510 form by:
- Logging into your secure Medicare account at Medicare.gov to download and submit the form
- Attach a voided check from the bank account you want to use.
- Mail the completed form and voided check to:
Medicare Premium Collection Center
P.O. Box 979098
St. Louis, MO 63197-9000
Once processed, Medicare will begin automatic monthly withdrawals. You’ll still receive a monthly statement for your records.
What’s covered:
- Medicare Part B premium
- Part D IRMAA (if applicable)
What’s not covered:
- Voluntary Part A premiums (If you pay for Part A because you didn’t earn enough work credits, this must be paid manually.)
- Part C (Medicare Advantage) and Part D (standalone drug plan) premiums – These are billed separately by private insurance companies. You’ll need to set up auto-pay directly with your plan provider for these premiums.
Why Auto-Pay Matters for Medicare Enrollees
Late or missed payments can lead to penalties—or even loss of coverage. Auto-pay ensures your premium is always paid on time, giving you one less thing to worry about. It’s a small step that can save you major stress down the road.
Have Questions About Your Medicare Coverage?
Whether you’re sorting out premium payments, reviewing your plan options, or trying to understand what Medicare does (and doesn’t) cover, we’re here to help.
At Medicare School our licensed Medicare Guides are ready to answer your questions, walk you through your choices, and make sure you’re getting the most out of your coverage.
The right guidance can save you significantly down the road. Schedule a virtual appointment or give us a call at 800-864-8890. No pressure—just real help from people who understand the system and are here to support you for the long run.