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Your Guide to Setting Up Automatic Healthcare Payments

Did you know that automatic healthcare payments from your bank account can save you a lot of frustration and inconvenience? Setting up automatic healthcare payments for your Medicare premiums is crucial because it prevents you from accidentally missing a payment which can result in you losing coverage.

This automation also allows for automatic and on-time payments to take place. At The Medicare Family, we help seniors understand electronic payment systems as they relate to Medicare. Here is a simple guide to setting up automatic Medicare premium payments.

How to Set Up Automatic Healthcare Payments

Healthcare billing, most times, can be time-consuming and very complicated. However, automatic payment systems come in handy. They ensure that a streamlined process takes place. If you are a Medicare beneficiary, the best way to make payments is through the electronic system. 

Here are two ways you can use it to start making automated payments for your Medicare premiums.

Sign Up for Medicare Easy Pay

laptop keyboard with Sign Up homepage on the computer screen register join applicant enroll enter membership concept.

Medicare Easy Pay ensures you can easily take care of your recurring Medicare premium payments. The default payment method for Medicare Part B is a quarterly bill. Most seniors are shocked when they receive a bill for over $500. Setting up Medicare Easy Pay allows your Medicare Part B premium to be automatically deducted from your bank account each month.

The deductions often happen on the 20th of every month. Here is how you can sign up for Medicare Easy Pay if you receive a Medicare bill:

  • Log in to your Medicare account. If you do not have a Medicare account yet, create one. 
  • Then choose “My Premiums.”
  • Go to “Sign Up” to complete the short online form. You must fill out the form to get a Medicare Easy Pay account.

It can take six to eight weeks for Easy Pay automatic deductions to start. One point to note is that you must use other means to pay before automatic deductions begin.

If there are any issues with the setup process, do not worry. Medicare will contact you to explain the problem. After Medicare Easy Pay goes into effect, you will find the Automated Clearing House (ACH) transaction in your bank statement.

Another way to sign up for Medicare Easy Pay is by filling out and mailing the form to the Medicare address. The address is:

Centers for Medicare & Medicaid Services

Medicare Premium Collection Center

PO Box 979098

St. Louis, MO 63197-9000

Use your Bank’s Bill Pay Feature

Paying via bank online: Automatic Healthcare Payments

There are banks whose merchant services involve automatic payments. They allow you to pay directly from your checking or savings account via the bank’s online payment service.

One key point to note is that not all banks provide the service. Thus, make sure to confirm whether your bank allows for online payments. If they do, here are some tips for setting up those payments.

Ensure that you enter all your information correctly. Correct information input allows for on-time payments to occur. Here is the information to give your bank:

  • Your 11-character Medicare number: 
    • You will find the Medicare number on your Medicare card. 
    • Your Medicare bill will also have the number at the top left. 
    • The payment coupon will have the Medicare number at the bottom. 
    • When entering the letters and numbers, ensure you do not include extra characters, spaces, or dashes.
  • On the Payee name, enter CMS Medicare Insurance.
  • On the Payee address, enter:

Medicare Premium Collection Center

PO Box 790355

St. Louis, MO 63179-0355 

  • Then proceed to fill in the payment amount. Remember to adjust the amount if you want to make any premium changes. 

Setting up automatic healthcare payments to pay your Part B premium is possible using your Bank Account. Apart from Medicare premiums, you can also use your bank’s online bill payment services to make payments to other healthcare plans.

Automated Bank Draft or Electronic Funds Transfer (EFT) enables you to have your monthly premium deducted electronically from your checking account – as opposed to mailing in your payment each month. You can also set up a monthly bank draft for your Medicare Supplement, Medicare Advantage, or Drug plan premiums.

What happens if you don’t pay your Medicare premiums?

Medicare Part A, which covers hospital care, is free for most enrollees, but Parts B and D – which cover doctor/outpatient/preventive care and prescription drugs, respectively – charge participants a premium. If you’re on Social Security, your Part B premiums will automatically be paid out of your benefits, so there is no need to fret about missing payments. You may also have your Part D premiums paid from your Social Security benefits if you choose Medicare Advantage (Part C) instead of Original Medicare.

If you don’t pay your Medicare Part B premiums on time, you could lose your coverage eventually. But relax – that won’t happen without warning.

If you miss your initial payment due date, you will receive a second bill from Medicare which will be due a month later. If your second bill goes unpaid, you will get a delinquency notice due one month later. You will receive a termination notice if that bill goes unpaid for another 30 days. 

Grace periods for Part C or D depend upon the plan you have chosen, but the companies administering those plans are also required to give you written notice regarding termination.

How Will The Medicare Family Help With the Process?

At The Medicare Family, we prioritize exceptional customer service to Medicare beneficiaries. We have been assisting seniors in navigating the Medicare system since the 1980s, gaining the necessary knowledge you may need.

Setting up automatic healthcare payments for your Medicare premiums may be confusing. However, you do not need to worry. We are here with you. Our mission is to make Medicare easy. We help seniors understand the various challenging Medicare concepts. 

Are you struggling with understanding automatic healthcare payment systems? Do you need further guidance on how to set up an account? Contact us today and let us guide you through the process.

Sylvia Gordon, aka Medicare Mama®, is an expert on all things Medicare and Social Security. She is the 2nd Generation here at The Medicare Family and has served on the advisory boards of major insurance companies like UnitedHealthcare®, Cigna, and Anthem. In her free time, she can be found taking care of her animals (dogs, goats, peacocks, chickens), and reading a good book. Learn More.
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