Is Medicare Benefits Taxable? 
Medicare benefits are not taxable . They are health insurance claim payments , a reimbursement -LRB- if you will -RRB- for services rendered . That being said , when Medicare pays a claim it does n't matter if they send the claim check to your provider -LRB- that accepts assignment -RRB- or to you -LRB- if you use a provider that does not accept assignment -RRB- . 