How Your Medicare Premiums Get Paid With benefitbay

How are my Medicare premiums paid through ICHRA (CHOICE)?

After your Medicare coverage is active, benefitbay sets up direct premium payment from your ICHRA (CHOICE) account—so you do not pay first and wait to be reimbursed.

Quick answer

With benefitbay ICHRA (CHOICE), eligible Medicare plan premiums are paid directly from your ICHRA account once your coverage and payment setup are complete. You do not submit receipts, file a claim, or pay the carrier from a personal account first. The benefitbay Medicare Team sets up the payment method during your enrollment consultation and confirms that it is active before your coverage begins.

The payment sequence

Premium payment begins only after the Medicare and coverage steps are complete:

• Parts A and B are active. This is the required Medicare foundation.
• You select the coverage route. You choose Medicare Advantage or Original Medicare with Medicare Supplement Insurance and Part D.
• Your plan enrollment is confirmed. The carrier confirms the coverage you selected.
• benefitbay connects the premium payment. Your ICHRA account is entered as the payment method for each eligible plan.
• You verify the setup before the effective date. The benefitbay Medicare Team confirms the payment method is accepted and your coverage is ready.

The point of the process is to keep Medicare coverage, plan selection, and the employer contribution connected from the start.

What gets paid directly

The direct-payment workflow is used for the eligible coverage you select, including Medicare Advantage, standalone Part D, and Medicare Supplement Insurance premiums. In the Original Medicare route, that means the benefitbay setup handles the eligible Medicare Supplement Insurance and Part D premium payments alongside the Parts A and B premium process. In the Medicare Advantage route, it handles the eligible plan premium after the plan is selected.

Your employer’s ICHRA (CHOICE) contribution is funding Medicare coverage. It is not a reimbursement arrangement for the prior group or individual plan you had before becoming Medicare-eligible.

What you do not need to do

You do not pay the eligible carrier premiums with a personal bank account and wait to be paid back. You do not upload receipts for routine direct-paid premiums. You do not need to manage separate carrier payment portals once the approved benefitbay setup is confirmed.

Personal payments are not eligible for reimbursement unless they were preauthorized in advance. If a carrier asks you for a payment method or sends you a bill, stop and contact the benefitbay Medicare Team before you pay.

The Social Security exception

If you already receive Social Security benefits, your Part A and Part B premiums may be withheld automatically from your monthly Social Security payment. There is no separate bill or carrier payment method to set up for those deductions. The benefitbay Medicare Team uses the official notices to keep the ICHRA (CHOICE) and payroll reporting accurate.

If you choose Social Security withholding for Part D, or if you have a Part D penalty or IRMAA charge withheld, keep every notice and provide it through the authorized benefitbay process. Accurate notices ensure the payment record stays correct.

Your final activation check

Before your effective date, confirm all of the following:

• Your Medicare Parts A and B effective dates
• Your Medicare Advantage, Medicare Supplement Insurance, and/or Part D effective date
• Your ICHRA (CHOICE) account is active
• The approved premium payment method is attached to each eligible plan
• You understand any Social Security withholding that applies to you