Medicare and inheritance rules

While an inheritance does not affect a person’s eligibility for Medicare or its benefits, it may increase some premiums or limit access to income-based programs.

This article provides an overview of the effect of inheritance on Medicare, explaining how inheritance might affect certain costs and eligibility for some programs.

However, beneficiaries must speak with Medicare to learn how their inheritances may or may not affect them in their specific situations.

Medicare offers health insurance to beneficiaries ages 65 years and older and certain younger people who meet qualifying disability criteria.

Inheritance does not affect a person’s Medicare eligibility or access to its benefits. This also applies to people who qualify for Medicare before turning 65 years old based on receiving Social Security Disability Insurance (SSDI).

However, beneficiaries receiving Supplemental Security Income (SSI) must notify the Social Security Administration (SSA) of their inheritances within 10 days after the month they receive them since inheritances may render them ineligible for SSI benefits.

It is important to remember that SSI differs from SSDI because income or resources do not determine SSDI eligibility.

Whether the SSA considers an inheritance as income depends on a particular person’s specific circumstances and state law.

In states where inheritances fall under the categories of income or assets, beneficiaries may have to pay more for some Medicare premiums.

The standardized base premium for Medicare Part B in 2025 is $185, while Part D premiums vary by plan and have a national base beneficiary premium of $36.78 in 2025 ($38.99 in 2026).

However, the income-related monthly adjustment amount (IRMAA) adds more costs to these premiums based on a person’s modified adjusted gross income (MAGI) from 2 years prior. MAGI is adjusted gross income plus tax-exempt interest.

This means that inheritance could potentially affect a person’s IRMAA brackets, which means they may pay more per month for Medicare Part B and Part D.

An inheritance can affect a person’s eligibility for some Medicare programs if their total income or assets exceed the annual limit. This applies to Extra Help, also known as the Part D low income subsidy, and to Medicare savings programs (MSPs).

Extra Help helps people with limited income and assets pay for Medicare Part D costs like premiums, deductibles, and coinsurances. MSPs can also help people pay for similar Medicare Part A and Part B costs.

Aside from a person’s primary residence, Medicare generally considers assets, such as bank accounts, stocks, bonds, mutual funds, individual retirement accounts, and money stored at home. Since an inheritance likely falls into one of these categories, it can directly affect program eligibility.

Inheritance does not affect Medicare eligibility or benefits, even for eligible SSDI recipients.

However, new income or assets can increase Medicare Part B and Part D premiums and may affect eligibility for MSPs or Extra Help.

Beneficiaries can find more specific information that applies to their situations by calling 1-800-633-4227 (TTY: 1-877-486-2048) or contacting a local State Health Insurance Assistance Program (SHIP).