Discover the easy way to pay your Medicare premiums and how to avoid overdraft and insufficient funds (NSF) fees. Download the PDF form and sign up for Medicare Easy Pay.
What is Medicare Easy Pay?
Medicare.gov says, “Medicare Easy Pay is a free, electronic payment option.” It automatically deducts your Medicare premium payments from your bank account each month. In other words, it automatically pays your Medicare premiums every month and removes the burden of you paying it yourself. However, it may expose you to banking overdrafts and NSF fees.
Overdraft and Insufficient Funds (NSF) Fees
Medicare Easy Pay makes paying your Medicare premiums easy. However, if your bank balance is less than the Medicare payment amount, you may incur overdraft or NSF fees. For example, an overdraft fee could cost you $35. You can avoid these costly fees with overdraft protection.
How to Avoid Overdraft Fees
You can avoid bank overdraft fees by linking a checking account to a savings account. When your checking account does not have sufficient funds, instead of the bank charging you overdraft fees, money is withdrawn from your saving account. Thus, you avoid overdraft and insufficient funds (NSF) fees.
For example, you authorize Medicare Easy Pay to withdraw funds from your checking account. When the payment exceeds your checking balance, the bank withdraws funds from your linked savings account. Your checking account remains protected from overdraft fees as long as you have enough money in your savings. You can get notified of low account balances to avoid multiple overdraft fees.
Low Balance Alerts
Not knowing you have a low balance can result in a series of overdraft fees. Instead of getting charged one $35 NSF fee, if you continue to make withdrawals on that account, the bank can charge you $35 NSF fee for every transaction. Consequently, you could rack up several NSF fees.
We recommend you set up low balance alerts for your bank accounts. When the balance falls below the amount you set, the bank will notify you. For example, Bank of America can email you a “Low Balance Alert” when your checking account is below $100. Then you can deposit or transfer more funds into your checking to avoid multiple NSF fees.
How do you sign up for Medicare Easy Pay?
Anytime you get a bill for your Medicare premium, you can sign up for Medicare Easy Pay. First, you fill out the “Authorization Agreement for Pre-authorized Payments” form SF-5510. You can download the PDF in English or Spanish. To complete the form, you will need your 11-character Medicare Number and supply a blank check. Once you complete the form, mail it to the following address:
Medicare Premium Collection CenterMail completed form SF-5510 to the address above
PO Box 979098
St. Louis, MO 63197-9000