Medicare Part B has a monthly premium, which in 2022 equals around $170.10/month for most beneficiaries. Each Medicare beneficiary pays this premium, as it is automatically deducted from the Social Security payment before the check is deposited or sent to the individual. For those who have Medicaid or other subsidies, the Medicare Part B premiums are paid with state funds or other financial assistance programs. In the last years insurance providers started to offer Medicare Part B Giveback benefit as part of the Medicare Advantage coverage, and it has quickly become the most popular benefit.
Giveback is basically a reduction in Medicare Part B premium offered by some Medicare Part C plans. The amount covered can range between 10 cents to the full Part B premium cost. But be aware that not all plans will have this feature, although more and more companies are considering offering givebacks at some level. And let`s be honest, who wouldn’t like to see an increase in Social Security monthly deposit of up to $170.10?
HOW DOES PART B GIVEBACK BENEFIT WORKS?
If you are paying the Part B premium, and the selected Medicare Advantage plan allows giveback benefit, you are eligible to receive the giveback. Eligibility for the plan is still contingent upon living in the plan’s area and having Medicare Parts A & B. For those who do not pay Medicare Part B premium, the giveback portion of a plan does not apply since they have no premium to be repaid.
Giveback only work through Social Security, so if you are paying Medicare Part B premium and join a plan that has givebacks the amount you receive back will be seen only in your Social Security check or deposit. No cash exchanges hands between you and the insurance carrier. This entire arrangement is done through Social Security.
There is confusion about who gets the Part B giveback and who does not. If you are paying the Part B premium, and the plan allows for an allowance or giveback, you are eligible to receive the giveback. For those who do not pay Medicare Part B premium, people who receive Medicaid or other assistance, the giveback portion of a plan does not apply as you have no premium to be repaid. The plans only work with and through Social Security, so if you are paying Medicare Part B premium and join a plan that has givebacks the amount you receive back will be seen only in your Social Security check or deposit.
Be aware that the Medicare Part B Giveback benefit is only available with Medicare Advantage (Part C) plans. The Medicare Advantage plan that offers a reduction may or may not have prescription drugs (Part D) plan. There is no Medicare Part B premium reduction given through a Medicare Supplement plan!
HOW TO ENROLL INTO MEDICARE PART B GIVEBACK BENEFIT?
To enroll in a plan that offers Medicare Part B Giveback benefit you must meet the plan’s eligibility requirements; live in the service area and have Medicare Parts A and B.
Sometimes the Part B Giveback is mistaken for the Medicare Savings Program’s income-based Part B premium reduction. This feature can also reduce your Part B responsibility, but that would be tied to having a very low income relative to the average Medicare beneficiary.
HOW DO I RECIEVE THE PART B GIVEBACK BENEFIT?
You will not receive checks directly from your Medicare Part C plan carrier. You can get your reduction in 2 ways; first, if you pay your Part B premium through Social Security, the Part B Giveback will be credited monthly to your Social Security check; and second, if you don’t pay your Part B premium through Social Security, you will pay a reduced monthly amount directly to Medicare. There is no cash exchange between beneficiaries and insurance provider!