Medicare does consider Social Security Disability Insurance (SSDI) as income. This means if you work and receive disability benefits, your Medicare premium may be higher. But if you rely solely on disability payments, you’ll just pay the standard costs.
In most cases, if you’ve received SSDI for at least 2 years, you qualify for Original Medicare (parts A and B) even if you’re younger than 65 years old.
You can then also enroll in Part D, which covers prescription drugs. Alternatively, you can choose to enroll in a Medicare Advantage plan instead of Original Medicare.
Read on to learn how SSDI can affect your Medicare costs.
Learn more: Medicare disability coverage
If you qualify for Medicare before age 65, you don’t pay a premium for Part A. When it comes to Part B, the monthly premium is deducted from your SSDI payments.
You pay the standard 2025 premium of $185 if you’re unable to work and are living entirely off your SSDI payments. This is more likely to be the case, as the Social Security Administration generally requires that you be unable to work before granting benefits.
But there are situations when people are able to work and still qualify for SSDI.
In these cases, you may have to pay more for your Part B premium. This also applies to Part D, which covers prescription drugs.
Although the premiums for Part D vary by plan, they still increase by a fixed amount based on your total income.
If you’re still employed while receiving SSDI benefits and your total income exceeds $106,000 if you’re single and $212,000 if you’re married, you’ll have to pay more as follows:
Single with an individual tax return or married with a joint tax return
| Modified adjusted gross income (MAGI) | ||
|---|---|---|
| • Individuals: between $106,000 and $133,000 • Married couples: between $212,000 and $266,000 | standard premium plus $74.00 | your plan premium plus $13.70 |
| • Individuals: between $133,000 and $167,000 • Married couples: between $266,000 to $334,000 | standard premium plus $185.00 | your plan premium plus $35.30 |
| • Individuals: between $167,000 and $200,000 • Married couples: between $334,000 and $400,000 | standard premium plus $295.90 | your plan premium plus $57.00 |
| • Individuals: between $200,000 and $500,000 • Married couples: between $400,000 to $750,000 | standard premium plus $406.90 | your plan premium plus $78.60 |
| • Individuals: at or above $500,000 • Married couples: at or above $750,000 | standard premium plus $443.90 | your plan premium plus $85.80 |
Married but filed separate tax returns
| Modified adjusted gross income (MAGI) | ||
|---|---|---|
| between $106,000 and $394,000 | standard premium plus $406.90 | your plan premium plus $78.60 |
| individuals with a MAGI at or above $394,000 | standard premium plus $443.90 | your plan premium plus $85.80 |
Your employment income and SSDI payments may not be the only payments Medicare considers as income to determine how much you have to pay. Other possible income that can qualify includes investments or rent you collect for a property you own.
In addition, if you choose to enroll in Medicare Advantage instead of Original Medicare, you’ll receive the same benefits, but your premiums and income-based tiers will vary depending on the plan you choose and where you live.
Learn more: Medicare income limits
Do you automatically get Medicare if you are on SSDI?
You have to wait 24 months after you begin receiving SSDI before you can enroll in Medicare. This waiting period applies for every qualifying condition except amyotrophic lateral sclerosis (ALS) and end stage renal disease (ESRD). With these conditions, you can get coverage within the first month of qualifying for SSDI or within 3 months of undergoing dialysis, respectively.
What disabilities qualify for Medicare under 65?
The Social Security Administration maintains a list of qualifying conditions based on which bodily systems would be affected. If you have a condition that’s not on this list, the administration will evaluate whether the impact of the condition on your life is comparable to the conditions on the standard list.
What happens to your Medicare disability when you turn 65?
Your SSDI will not change when you turn 65 years old. However, it will convert to retirement benefits once you retire around age 66 or 67. That said, you should continue to receive the same payments and will now qualify for Medicare based on age.
If you have been receiving SSDI for at least 2 years, you are eligible for Original Medicare (parts A and B) even if you are under 65 years old.
If you receive both disability benefits and work income, your premium may be higher because Medicare considers SSDI as part of your reportable income.
But if your sole source of income is through disability payments, you will only pay the standard Medicare costs.