Paying for Medicare Health Insurance in Texas

There are four ways you can pay for Original Medicare in Texas:

1. You can pay online through your Medicare account. Log into your account or create an account if you do not have one. Select “My Premiums” and click “Pay Now.” Pick the payment method you want. It can be credit card, debit card, or from your checking or savings account. To complete your payment, you'll be directed to the secure Pay.gov website of the United States Treasury. You will receive a confirmation number once you've completed your payment. Payments made with a checking or savings account may take about five business days to process; credit card payments take less time. Payments made to “CMS Medicare Insurance” for credit or debit cards or “CMS Medicare Premiums” for checking or savings accounts will appear on your statement. Using your online Medicare account to pay has no cost or service fee; it's completely free.

2. You can use your bank’s online bill payment service to pay directly from your savings or checking account. To set up this service, contact your bank or go to their website. Note that this service is not available at all banks, and some banks charge a fee. Check that your payment is set up correctly to ensure that your bill is paid on time—if any of the information you provide to the bank is incorrect, your payment will be delayed.

   Inform your bank about the amount to pay for your premium and give them the following information:

   • Your 11-character Medicare Number, which can be found on your Medicare card or your bill. Do not use dashes, space, or extra characters when entering the numbers and letters. Because letters and numbers can look alike, double-check. (Medicare numbers do not contain the letters B, I, L, O, S, and Z.)

   • Payee name: CMS Medicare Insurance

   • Payee address:

     Medicare Premium Collection Center
     P.O. Box 790355
     Saint Louis, MO 63179-0355

3. You can pay your Medicare premiums through Medicare Easy Pay. This is a free service that deducts your monthly premium payments automatically from your savings or checking account every month. In addition, Medicare will deduct your premium from your bank account on the 20th of each month.

4. You can pay by check, money order, credit card, or debit card, which should be mailed to Medicare. Complete the payment coupon that came with your bill to make a payment. Payments that are not accompanied by a coupon may be delayed. If you are paying with a credit or debit card, type in the account information and expiration date exactly as they appear on your card. Then, make sure you sign the coupon. Mail your Medicare payment coupon and payment to:

   Medicare Premium Collection Center
   P.O. Box 790355
   Saint Louis, MO 63179-0355

Call Medicare (800) 633-4227 or (877) 486-2048 (TTY) if you are having trouble paying your premiums or if you have any questions about your Medicare premium bill.

If you get a Medicare bill from the Railroad Retirement Board (RRB), you have to mail your premium payments to:

RRB, Medicare Premium Payments
P.O. Box 979024
Saint Louis, MO 63197-9000

Call the RRB at (877) 772-5772 if you have questions regarding your bill.

If you are receiving Medicare Advantage coverage, you will pay premiums for Medicare Part B and your Medicare Advantage (Part C) plan. Your insurer bills you for your Part C premiums. To pay it, you have the option of deducting your payments from your Social Security benefits. Submit a request to Social Security to have your Part C premium payments deducted when your Part C payment is due. Social Security has to approve your request before this is done. If you do not qualify for Social Security, you can send a check or request that your bank automatically deducts your premiums from your bank account.

To get the most up-to-date information about Medicare insurance in Texas, speak with a knowledgeable state-licensed health insurance agent.

Who Pays for Medicare Insurance in Texas?

It depends on whether you get Social Security or Railroad Retirement Board (RRB) benefits in Texas. If you do, your Medicare Part B premiums will be automatically deducted from your Social Security or RRB benefits. You can also authorize this for your Medicare Advantage (Part C) plan payment - it is not automatic.

If you do not qualify for benefits, Medicare will send you a bill for the following premiums:

• Part B (Medical Insurance)
• Part A (Hospital Insurance) - if you buy it
• Part D income-related monthly adjustment amount (Part D IRMAA) - an additional amount you pay on top of your Part D plan premium if your income exceeds the Modified Adjusted Gross Income (MAGI).

If you get Medicare Advantage coverage, you will have to pay directly to your insurance provider.

What are the Payment Options for Medicare Insurance?

You can pay for Medicare through different means:

• Online through Medicare Easy Pay or your Medicare account
• Your bank’s online bill payment service
• Mailing a check, money order, credit card, or debit card

Make sure to discuss your questions with a knowledgeable Texas-licensed health insurance agent.

Can I Finance the Medicare Insurance Cost?

Financing health insurance like Medicare is not common. Premium financing is mostly used for life and property & casualty insurance. Most health insurance plans are affordable and have basic forms of payment. Medicare goes further to make provisions for alternative means of funding your plan if you are unable to pay. You can talk to a licensed insurance agent in Texas to know more about premium financing and how it works.

Is Premium Financing Available for Medicare Insurance?

No, premium financing is available for property and life insurance only. It is a means of borrowing funds from an entity to pay your insurance premiums.

How Often is Medicare Insurance Paid in Texas?

Generally, you pay for Medicare every month in Texas. However, if you purchase Part B only, you will receive a “Medicare Premium Bill” (Form CMS-500) (Spanish) every three months. Likewise, you'll get a “Medicare Premium Bill” every month if you buy Part A or owe Part D income-related monthly adjustment amount (IRMAA). Medicare Advantage and Supplement plans premiums are paid every month too.

Is Medicare Insurance Paid Monthly or Yearly?

Medicare insurance is paid monthly in Texas. But if you got Medicare Part B only, you pay every three months.

Can Medicare Insurance Premiums Be Paid Annually?

No. Medicare insurance premiums are paid monthly only.

Can New Medicare Insurance Cover Old Bills?

No. Your new Medicare coverage cannot cover old bills in Texas. Your old plan has to settle every bill attributable to it. You or the old plan cannot transfer your old bills to your new plan. It makes no difference if your plan was canceled or your bills are old or past due; your previous insurer/insurance plan will cover it. The benefits of your old plan have to do with the care you got while it was in effect. If you received medical treatment while covered by the old plan but did not file a claim, you might be eligible for reimbursement.

How Do I Send My Medicare Insurance Bill?

You should collect all previous bills from healthcare providers from whom you received treatment or service. You may ask them to send you an email with a list of all of your appointments, then approach your insurer to submit the information.

If you are trying to make claims on your old plan, you should talk to a Texas insurance agent or lawyer to avoid making mistakes.

Do I Pay My Medicare Insurance or My Doctor?

It depends on whether a Medicare-approved doctor (for Original Medicare) or an in-network or out-of-network doctor (for Medicare Advantage) in Texas. If the doctor is Medicare-approved or part of your provider’s network, you will be able to make payments to Medicare or your insurance provider. However, you may have to pay the entire cost if the doctor is not Medicare-approved or is not within your provider’s network. When this happens, you have to submit a claim to Medicare using Form CMS-1490S or your insurance company to reimburse you.

Talk to a licensed insurance agent in Texas to learn more about who you should pay for medical services.

Do I Pay Taxes on Medicare Insurance?

Medicare premiums and other medical costs are generally tax-deductible in Texas. Hence, you may not pay taxes on your Medicare (Parts A, B, C, D, and Medigap) costs. The IRS permits you to deduct medical expenses that are more than 7.5% of your adjusted gross income (AGI). Your AGI is how much you earn in a year after all taxes have been deducted, including how much you pay for Medicare. Your ability to deduct premiums is determined by your AGI and how much you pay in premiums. Let’s say your AGI is $30,000, 7.5% of it is $2,250. You can deduct medical expenses that are more than $2,250. It may be premiums, deductibles, coinsurance, copays, or other out-of-pocket costs. Hence, you need to sum up all your medical costs to know how much you spent on medical care for that tax year.

If you are self-employed, your medical deductions differ slightly. Beneficiaries who are self-employed can deduct their premiums before taxes. This is referred to as an “above the line” deduction. If you pay your premiums before taxes, your AGI will be lower, allowing you to deduct even more medical expenses. Additionally, the IRS permits you to deduct pre-tax Medicare premiums for your spouse. You are self-employed if you are the owner of a business.

Can You Pay Medicare Insurance Late?

Yes. However, you should ensure that you do not pay after notice of late payment and the grace period (usually two to three months) lapses. If not, you may lose your coverage and will have to wait until the next enrollment period to get health coverage.

Does Medicare Insurance Have a Grace Period?

Yes. The duration of the grace period depends on your coverage in Texas. It is at least two months for Medicare Advantage or Prescription Coverage plans and three months for Original Medicare.

What is a Grace Period in Medicare Insurance?

The grace period for Original Medicare and Medicare Advantage (and Prescription drugs plans) is three and two months, respectively.

Is There a Grace Period for Medicare Insurance After Termination?

You can re-enroll for a terminated plan in Texas during a valid enrollment period between October 15 and December 7. However, your plan provider will require you to pay your outstanding premiums first before considering your re-enrollment request.

You can also reinstate your plan through the Medicare “Good Cause” policy by showing that you had a good reason for not paying your premiums during the grace period. If your request is accepted, you will have to pay your outstanding premiums. You should request Good Cause within 60 days after your dis-enrollment.

Will My Medicare Insurance Lapse if I Miss a Payment?

No. Your Medicare insurance does not lapse if you miss a payment in Texas. However, it lapses when you miss payments after proper notice and the plan’s grace period. The grace period for Medicare Advantage plans is usually two months (it may be more, depending on the insurance company). Therefore, you will be notified at least a month before the termination of your coverage.

The grace period for Original Medicare is three months. You will receive a delinquent bill after failing to pay in the second month. This means that if you fail to pay, you will lose your coverage.

What to do if You Can’t Pay for Medicare Insurance?

You can get help with paying Medicare costs in Texas through the following means:

• Texas Medicaid: This ​is a joint federal and state health program that assists people with low income and resources with their medical costs. It may also provide you with benefits not covered by Medicare, such as nursing home care and personal care services. You can check your Medicaid eligibility or apply for Texas Medicaid on the Texas Benefits website or call 211 or (877) 541-7905 (711 for TTY). You can also call the number for more information.

• Medicare Savings Programs: They can help pay your Medicare Part A and Medicare Part B deductibles, coinsurance, and copayments if you meet certain conditions. These conditions include if you qualify for Medicare Part A, your income for the year is less than the income limits for any of the savings programs, and you have limited resources. If you meet these conditions, call (877) 541-7905, (800) 633-4227, or (214) 767-6423. The four Medicare Savings Programs include:

  • Qualified Medicare Beneficiary (QMB) Program
  • Specified Low-Income Medicare Beneficiary (SLMB) Program
  • Qualifying Individual (QI) Program
  • Qualified Disabled and Working Individuals (QDWI) Program

• Program of All-Inclusive Care for the Elderly (PACE) in Texas: This health program assists individuals with their health needs in the neighborhood instead of going to a nursing home or other care facility. You get access to a team of healthcare service providers, including a PACE-preferred doctor. You qualify for PACE if you are:

  • 55 years or older
  • Living in the service area of a PACE organization
  • In need of a nursing home-level of care
  • Able to live safely in the community with help from PACE

  You can get information about PACE in Texas by calling (512) 487-3450.

• Supplemental Security Income (SSI) Benefits: This is a cash benefit provided by Social Security individuals with limited income and resources who are blind, 65 or older, or have a disability. It is not the same as Social Security retirement benefits. If you qualify, you can apply online on the SSA Benefits website. In addition, you can call Social Security at (800) 772-1213 or (800) 325-0778 (TTY) or your local Social Security office for more information.

• Try to lower your prescription costs. You can do this by checking Medicare drug plans to get lower drug cost plans. You can also check if Texas offers to pay for the drug you need. Sometimes the company that produces that drug may offer to pay for the drug. Other options include asking about generic drugs or using mail-order pharmacies.

• Apply for Extra Help with your Part D coverage.

If you are having issues with paying your premiums or inquiries about your bill, call Medicare (800) 633-4227 or (877) 486-2048 (TTY).