What is the Medicare Part B Premium Giveback?
While watching TV or listening to the radio you may have come across an enticing advertisement that said something like, “If you’re 65 years or older and enrolled in Medicare you may be eligible to receive up to $148 back each month!” Sounds great, right! So how do you get the extra savings? We’re going to cover exactly that. Keep reading to find out what those advertisements are talking about and how you can benefit from the Medicare Giveback program.
What is Part B Giveback?
Medicare Part B Premium Giveback, also known as Part B Premium Reduction, is a program offered through Medicare Advantage (Part C) plans that gives back a portion or all of your Medicare Part B premium.
Medicare Advantage plans are offered by private insurance companies approved by Medicare that include Original Medicare (Part A and Part B) benefits plus additional benefits like dental, vision, hearing, and more. Since Medicare Advantage plans include Original Medicare benefits, you still have to pay your Part B premium in addition to a Medicare Advantage premium if any. For 2021, the standard monthly Part B premium cost is $148.50. If you enroll in a Medicare Advantage plan with Part B Premium Giveback the plan will give you back a portion or all of your monthly Part B premium.
Who is Eligible?
To qualify for Medicare Part B Premium Giveback, you must:
- Be enrolled in Original Medicare coverage
- Live in the plan’s service area
- Not be receiving financial assistance from Medicaid or a Medicare Savings Plan
How Does it Work?
Once you are enrolled in a Medicare Advantage plan with Part B Premium Giveback you will receive the “giveback” amount each month in your Social Security check. The amount you receive depends on the specifics of the plan you are enrolled in. Giveback amounts can range from as low as $10 to the entire amount of your monthly premium.
For example, let’s say you enrolled in a MA plan with a Part B Premium Giveback of $80 and your monthly Social Security checks are $1500. Once your “giveback” amount kicks in, you should expect to receive Social Security checks each month with a new total of $1580.
Keep in mind, it may take a few months after your insurance plan begins to receive your “giveback” amount. The first deposit will include back pay for the months missed since your plan started.
Finding a Plan with Medicare Part B Premium Giveback
Although Medicare Advantage plans with Part B Giveback are gaining in popularity they aren’t available yet in every area and are limited in the areas they are available in. If you are looking for a Part B Giveback plan near you, it’s best to work with a licensed independent insurance agent to discuss your options. An independent agent can help you determine which plan is right for you based on your unique health and financial needs.
While the Part B Premium Reduction is enticing for those looking for budget-friendly health plans it is important to not base your decision solely on that benefit. Always consider your health requirements first. Medicare Advantage plans do still require cost-sharing like copays and coinsurance until your plan’s annual deductible has been met. Additionally, Medicare Advantage plans are also network plans meaning they require you to use doctors and hospitals within their network and may charge more if you use a service outside of the network. Before choosing a Medicare health plan, compare all options to ensure you are receiving the best coverage for your needs.