Most drug plans charge a monthly fee that varies by plan. If you have Part B, you pay this in addition to the Part B premium . If you're in a Medicare Advantage Plan (Part C) or Medicare Cost Plan with drug coverage, the monthly premium may include an amount for drug coverage.
Get your premium automatically deducted
Contact your plan (not Social Security or the Railroad Retirement Board (RRB)) if you want your premium deducted from your monthly Social Security or RRB payment (called "premium withholding"). If you want to stop premium deductions and get billed directly, contact your plan.
Your plan will tell you when premium withholding is set up or if there are any problems. It may take up to 3 months to start.
If you don’t start having premiums withheld from your Social Security payment until 1 -2 months after you joined a drug plan, you’ll get a bill for those months from your drug plan. You’ll need to pay this bill directly to your drug plan.
What happens to my premium withholding if I switch plans?
How much does Part D cost?
Most people only pay their Part D premium. If you don't sign up for Part D when you're first eligible, you may have to pay a Part D late enrollment penalty.
If you have a higher income, you might pay more for your Medicare drug coverage. If your income is above a certain limit (in 2024 it's $103,000 if you file individually or $206,000 if you’re married and file jointly) (in 2025 it's $106,000 if you file individually or $212,000 if you're married and file jointly), you’ll pay an extra amount in addition to your plan premium (sometimes called “Part D-IRMAA”). You’ll also have to pay this extra amount if you’re in a Medicare Advantage Plan that includes drug coverage. This doesn’t affect everyone, so most people won’t have to pay an extra amount. The chart below lists the extra amount costs by income.
Social Security will contact you if you have to pay Part D IRMAA, based on your income. The amount you pay can change each year. If you have to pay a higher amount for your Part D premium and you disagree (for example, if your income goes down), use this form to contact Social Security [PDF, 125 KB]. If you have questions about your Medicare drug coverage, contact your plan.
If Social Security notifies you about paying a higher amount for your Part D coverage, you’re required by law to pay the Part D-Income Related Monthly Adjustment Amount (Part D IRMAA). If you don’t pay the Part D IRMAA, you’ll lose your Part D coverage.
Employer/Union coverage and Part D IRMAA
Things to remember
- Pay your Part D IRMAA bill to Medicare as soon as you get it. Find out how to pay your bill.
- Keep your address current with Social Security, even if you don’t get a Social Security check.
Part D premiums by income
The chart below shows your estimated prescription drug plan monthly premium based on your income as reported on your IRS tax return. If your income is above a certain limit, you'll pay an income-related monthly adjustment amount in addition to your plan premium. If you've had a life-changing event that reduced your household income, you can ask Social Security to lower the additional amount you'll pay.
2024
If your filing status and yearly income in 2022 was:
| File individual tax return | File joint tax return | File married & separate tax return | You pay each month (in 2024) |
|---|---|---|---|
| $103,000 or less | $206,000 or less | $103,000 or less | your plan premium |
| above $103,000 up to $129,000 | above $206,000 up to $258,000 | not applicable | $12.90 + your plan premium |
| above $129,000 up to $161,000 | above $258,000 up to $322,000 | not applicable | $33.30 + your plan premium |
| above $161,000 up to $193,000 | above $322,000 up to $386,000 | not applicable | $53.80 + your plan premium |
| above $193,000 and less than $500,000 | above $386,000 and less than $750,000 | above $103,000 and less than $397,000 | $74.20 + your plan premium |
| $500,000 or above | $750,000 or above | $397,000 or above | $81.00 + your plan premium |
2025
If your filing status and yearly income in 2023 was:
| File individual tax return | File joint tax return | File married & separate tax return | You pay each month (in 2024) |
|---|---|---|---|
| $106,000 or less | $212,000 or less | $106,000 or less | your plan premium |
| above $106,000 up to $133,000 | above $212,000 up to $266,000 | not applicable | $13.70 + your plan premium |
| above $133,000 up to $167,000 | above $266,000 up to $334,000 | not applicable | $35.30 + your plan premium |
| above $167,000 up to $200,000 | above $334,000 up to $400,000 | not applicable | $57.00 + your plan premium |
| above $200,000 and less than $500,000 | above $400,000 and less than $750,000 | above $106,000 and less than $394,000 | $78.60 + your plan premium |
| $500,000 or above | $750,000 or above | $394,000 or above | $85.80 + your plan premium |