Not paying your Medicare premiums may put you at risk of losing your Medicare coverage, though it will not happen without a warning. While Medicare Part A is premium-free for many beneficiaries, Part B and D both have monthly premiums. For beneficiaries who are enrolled in Social Security, the Part B premiums will be deducted automatically from their benefits. 

When to Pay Premiums

For beneficiaries who do not receive Social Security benefits, the premiums will need to be paid directly, such as enrolling in automatic payments from your checking account, for example. Part B premiums are to be paid by the 25th day of the month following the initial bill date. For example, if the initial bill date is March 27, then the premium would be due on April 25. If the beneficiary refuses to pay by then, Medicare will send a notification about the pending premium payment which will be due on the 25th day of the next month. 

If the beneficiary does not pay by the next due date, Medicare will send a delinquency notice asking the beneficiary to pay the outstanding amount the following month. If not, the individual will lose the coverage. Generally, Part B enrollees have a three-month window to pay the initial Part B premium. Anything later than that and the beneficiary will receive a termination notice informing them of the loss of coverage. 

However, if you can pay your outstanding premiums within 30 days of getting a termination notice, then you can get to keep your Part B coverage. If not, the coverage will be cancelled and you will have to enroll for Part B again during the General Enrollment Period. 

Part C and Part D

For Part C and Part D plans, the consequences of not paying premiums depends on the plan. However, your coverage can’t be terminated without prior warning. 

Medicare Part C and D plans all have grace periods that must last for two months at least. If you default a payment, the provider will send a notice of non-payment and must inform you when the grace period ends. If you still fail to pay the outstanding premiums, then you may be disenrolled from the plan. 

If you are disenrolled from a Part C plan, you will be automatically enrolled in Original Medicare and can re-enroll during the Annual Enrollment Period. If you have been disenrolled from a Part D plan, you can also re-enroll during the Annual Enrollment Period. 

In most cases, you may have to pay the outstanding premiums before you get your previous coverage. You may also have to pay a late enrollment penalty if you do not have prescription drug coverage for 63 days or more.

For more information about Medicare costs and guidelines, contact Game Changing Benefits 972-331-1060.