When shopping for a Medicare Advantage (Part C) plan, you’ve probably seen some offerings that include a Part B premium giveback benefit. Sounds kind of perfect, right? Many could use the savings on their Part B premium. But how do plans offer this? What does it mean for you? Let’s take a moment to go through what a Medicare Part B giveback benefit is, how it works and more.
Medicare Part B giveback benefits: The basics
A Medicare Part B giveback, also referred to as a Social Security giveback, senior giveback program or a Part B premium reduction, is a benefit offered by some Medicare Advantage plans. Part B is the section of Medicare that provides coverage for medical expenses, such as regular doctor visits, outpatient services, certain diagnostic screenings and some medicines administered during health services or prescribed after.
All Medicare Advantage plans cover Part B, which is legally required by Medicare, and enrollees pay a monthly premium as well as any deductibles, copays and coinsurance associated with care.
A Part B giveback provides a reimbursement benefit – as a rebate of sorts – where your health insurance provider pays a portion of your Part B premium, making your monthly payment more affordable.
How a Medicare Part B reimbursement works
Whether your plan offers a Part B giveback, as well as how much that reimbursement amount will be, depends on your health insurance plan. A few plans offer this benefit, and some don’t. Also, the Part B reimbursement spectrum has quite a range – some plans will pay you back around 10 cents and others will provide the full amount of your premium.
Reimbursement amounts vary so much because health insurance companies balance a plan’s overall cost to offer extra benefits. Typically, money reimbursed to you for your premium comes from somewhere else in your plan – which might mean fewer extra perks or more cost-sharing stipulations. It really depends on where you need your plan to support you the most. For some, that’s a premium rebate, and for others, that might be lower cost-sharing.
Also, in terms of payment, how you receive a reimbursement depends on how you choose to pay your monthly Part B premium. Some Medicare Advantage enrollees pay this out of their Social Security check, and some pay it directly to Medicare. Depending on how you pay your Part B premium, your giveback may be administered through the Social Security Administration or offered as a Medicare credit on your Part B premium statement.
Are Medicare Part B premiums deducted from Social Security?
Yes, as mentioned, you can pay your Part B premium through Social Security. But how exactly does that work? Most plans keep it simple. If you’re enrolled in a Medicare Advantage plan that offers a Part B giveback benefit, your rebate amount will be directly credited back to your Social Security amount.
Eligibility for a Medicare Part B reimbursement
To qualify for the Medicare giveback benefit, you must first be enrolled in a Medicare Advantage plan that offers this benefit. Alongside that, you also must be enrolled in Original Medicare (Parts A and B), pay your own Part B premium without assistance from Medicaid or another source and live within the zip code where your plan offers the giveback.
How much money can I get back from the giveback benefit?
The Centers for Medicare & Medicaid Services (CMS), which regulates offerings provided by Medicare Advantage plans, has not set a Part B standard amount that health insurance companies must provide with this benefit. This means that there’s no “average” reimbursement amount you can assume will be offered from a Medicare Advantage plan.
Giveback amounts can range from a few dollars to the full cost of your premium each month which is $174.70 as of 2024. That can mean some huge annual savings. Some plans, like the Journey Smart plan offered by HealthPartners, can even offer enrollees as much as $960 a year back in their pocket.
Something else to consider is that Medicare Part B premium and deductible costs may change each year. If you’re already enrolled in a Medicare Advantage plan that offers a reimbursement, you’ll be able to see if your plan’s giveback amount will change in the following year when you receive your plan’s Annual Notice of Changes (ANOC) in the fall. If it does change, you can look for a plan that’s better suited to your needs during Medicare’s Annual Enrollment Period (AEP).
When will I receive my Medicare Part B reimbursement?
Your Part B reimbursement is typically administered monthly. However, for some who choose to pay through Social Security, it’s not uncommon that it may take a few months to receive your reimbursements. If it does, you will be back paid for each month since joining your plan.
Is the senior giveback program legitimate?
A Part B reimbursement offered by a Medicare Advantage plan is a legitimate benefit – one that helps a lot of people! However, it’s normal to be wary of offerings you’re unfamiliar with. Medicare scams are on the rise, and you want to do your best to protect yourself. Often these fraudulent offerings can hinge around Medicare Advantage benefits, like premium reimbursements and Medicare Flex cards.
Staying informed is the best way to protect yourself. In terms of the Part B giveback, legitimate benefits will only ever be offered to you as part of a Medicare Advantage plan. This isn’t a benefit you can buy separately. If you’re contacted by someone claiming to be from Medicare or you see an ad that claims to be selling you a Part B reimbursement, be wary. This is especially true if they’re making large claims, like “You’ll earn more money in your Social Security every month,” which we know isn’t quite how the benefit works.
Medicare Advantage plans that give money back
If you’re interested in this benefit, it’s important to ask the right questions while you’re shopping around, so you can make sure your Medicare Advantage plan is meeting your needs. Often, Part C plans that offer a premium giveback don’t include Part D prescription drug coverage. However, some do, like the Journey Smart plan from HealthPartners, which brings medical and prescription drug coverage together, plus extra perks like a Part B giveback.
HealthPartners is a PPO plan with a Medicare contract. Enrollment in HealthPartners depends on contract renewal.
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