When it comes to Part B, some individuals are automatically enrolled, while others have to sign up for it. Unlike Part A (Hospital Insurance), there is not a free option; you will be required to pay a monthly premium. If you are currently receiving any of the benefits below, then your premium payments are directly debited from these:

1. Social Security
2. Railroad Retirement Board
3. Office of Personnel Management

If you are not receiving these benefit payments, a bill for Part B will be sent directly to you. Typically, most people will pay the standard premium amount. Those individuals that have a modified adjusted gross income over a certain amount, the premium will be set according to the Income Related Monthly Adjustment Amount (IRMAA).

Medicare uses your adjusted gross income as reported to the IRS from tax returns from two years ago or the most recent tax information. The standard Part B premium amount in 2021 is $148.50, which is what most people pay. An extra charge is added to your premium if your modified adjusted gross income is above a certain amount.

Two types of services that are covered under Part B:

1. Services or supplies that meet accepted standards of medical and are medically necessary to diagnose or treat medical conditions.
2. Services that are preventative in nature, including the flu shot, or promote early detection when treatment is optimal.

Coverage under Part B includes:

• Clinical research
• Ambulance services
• Durable medical equipment (DME)
• Inpatient, outpatient and partial hospitalization/care
• Outpatient prescription drugs in a limited capacity