What Is the Medicare Giveback Benefit?

The Medicare Giveback Benefit is included in select Medicare Advantage plans, refunding a portion of beneficiaries’ Part B premium. This benefit is not provided by Medicare directly but by private insurance companies that offer Medicare Advantage plans.

If you enroll in an Advantage plan that includes this benefit, the plan carrier may cover part or all of your Part B monthly premium, which ranges from 10 cents to the total amount ($174.70 in 2024).

To be eligible, you must:

• Be enrolled in Original Medicare (Parts A and B)
• Pay your own Part B premium
• Live in an area where the Part B Giveback is available

How Does The Giveback Benefit Work?

When a Medicare Advantage plan bids lower than the benchmark set by Medicare for services in a certain area, they can return some of these savings to beneficiaries, resulting in a reduced Part B premium.

If you’re enrolled in a Medicare Advantage plan that includes the Giveback Benefit, the amount specified by your plan will be deducted from your monthly Part B premium.

This reduced amount is what you’ll be required to pay each month. So, instead of paying the total Part B premium, you pay the reduced amount, effectively “giving back” a portion of the premium to you.

Which Advantage Plans Include the Giveback Benefit?

Determining which Medicare Advantage plans offer this benefit can be difficult due to variations in the carrier, service area, and eligibility requirements.

The Medicare Plan Finder tool is a good starting point to determine if a certain Medicare Advantage plan offers a Part B premium reduction. If a plan provides this reduction, it will be indicated on the plan details page.

Many insurance providers offer the Medicare Giveback Benefit. However, it still varies based on where you live. Some well-known examples include Cigna and Aetna, but there are many others.

• Pro tip:
  • The Kaiser Family Foundation reports that in 2024, 19% of Medicare Advantage plans are set to provide some reduction in the Part B premium.

How Will I Receive Reimbursement for My Part B Premium?

You cannot receive payments directly from your Medicare Advantage plan provider. However, you can receive your Part B reduction in two ways:

• If you pay Part B through Social Security, the Part B Giveback is credited monthly.
• If not, you’ll make a reduced monthly payment directly to Medicare.

• Example:

  Say you receive a $1,500 Social Security check and are eligible for a $40 Giveback Benefit; the amount deducted from your check for the Part B premium decreases by $40. Therefore, your check would increase to $1,540. If you pay Part B premium directly to Medicare, your monthly premium is reduced by $40.

If you’ve switched to a new Medicare Advantage plan with a giveback, it might take a couple of months for the reimbursement to kick in. Once it does, you’ll get reimbursed for each month you haven’t been compensated for since switching to the new plan.

Is Switching to a Medicare Advantage Plan With a Part B Giveback Worth It?

Considering a plan that offers a Part B premium reduction may seem attractive, but it’s crucial to weigh some factors before transitioning:

• Additional out-of-pocket costs
• Changes in prescription drug coverage
• Different healthcare provider networks
• Quality of overall plan coverage

If your expenses increase or coverage decreases compared to your current plan, the Part B reimbursement might not be worthwhile. On the other hand, if costs and coverage are similar or equivalent, it could be a beneficial switch.

Consulting with a Medicare expert can help clarify whether such a plan offers a true advantage based on individual circumstances.

Bottom Line

If your Medicare Advantage plan offers the Medicare Giveback Benefit, it’s a great way for eligible beneficiaries to save on healthcare costs.

When deciding to switch to a Medicare Advantage plan with a Part B premium reduction, consider how well the new plan fits your healthcare needs.

While saving on Part B premiums monthly is attractive, assess other factors like network providers, services covered, out-of-pocket expenses, and prescription drug coverage.

Sources:  Forbes Giveback Info |  Medicare Advantage Plans | CMS Part B Premium Info

FAQs

• How much does the Medicare Giveback Benefit save?

  If you enroll in an Advantage plan that includes this benefit, the plan carrier may cover part or all of your Part B monthly premium, which ranges from 10 cents to the total amount ($174.70 in 2024).

• Can I get the Medicare Giveback Benefit besides other assistance programs?

  You can combine the Giveback Benefit with other assistance programs to reduce out-of-pocket costs. Some examples include Medicaid and supplemental insurance plans.