Medicare Easy Pay is a free and secure system that automatically deducts your monthly Part A and Part B premiums from your chosen account. It simplifies the process of paying your Medicare premiums and gives you peace of mind that your healthcare coverage stays current.
How Medicare Easy Pay Works
With Easy Pay, automatic recurring payments for Original Medicare Part A or Part B premiums are withdrawn directly from your checking or savings account. Around the 20th of each month, your bank statement will show “CMS Medicare Premium” ACH transactions.
Most people do not pay a premium for Part A. If you worked at least 40 quarters paying Medicare taxes, you qualify for premium-free Part A. If you do not qualify, you must pay a monthly premium.
Part B always requires a premium. The standard Part B premium in 2025 is $185 per month, though it may be higher depending on your income (learn about IRMAA surcharges).
Easy Pay vs Other Payment Options
Medicare also offers a separate online payment system, and you can use your bank’s bill pay service. However, Easy Pay ensures payments are never late. Note: If your premiums are billed by the Railroad Retirement Board (RRB), you cannot use Easy Pay. You or your bank must mail payments directly to:
RRB, Medicare Premium Payments
P.O. Box 979024
St. Louis, MO 63197-9000
How to Enroll in Easy Pay
Enrollment requires the Authorization Agreement for Preauthorized Payment form (SF-5510).
- Download the form from Medicare.gov, or call 1-800-MEDICARE to request a copy.
- Provide your bank information, Medicare number, and account type (checking or savings).
- Include a voided check if using a checking account.
- Mail the completed form to:
Medicare Premium Collection Center
P.O. Box 979098
St. Louis, MO 63197-9000
Processing takes 6 to 8 weeks. Once approved, you’ll receive a notice that looks like a Medicare bill but says “This is not a bill,” confirming your enrollment.
Managing Your Easy Pay
Until your enrollment is confirmed, continue paying premiums using your existing method. If a payment fails, Medicare will send a letter instructing you to pay another way.
To stop Easy Pay, submit another SF-5510 form indicating you want to cancel or make changes.
What Easy Pay Covers
- Covers: Original Medicare Part A and Part B premiums
- Does not cover: Medigap (Medicare Supplement Insurance), Medicare Advantage, or Part D prescription drug plans
For those plans, you must pay premiums directly to the insurance company.
Why Use Medicare Easy Pay?
- No fees: The program is free.
- Secure: Payments are processed through a federal system, safer than mailing checks or card numbers.
- Convenient: Eliminates the risk of missing deadlines and keeps your coverage uninterrupted.
Next Steps
If you also want to reduce other out-of-pocket costs like deductibles, coinsurance, and copayments, consider comparing Medigap plans available in your state. A licensed insurance agent can help review your options.