A key feature of Medicare Advantage is the Medicare Part B premium reduction plan, also called the “give back plan.” Though it is not available in all states, and only some Medicare Advantage plans offer this benefit, people taking advantage of this plan may take home a larger portion of their Social Security check depending on their Part B premium payment method.
What is the Part B Premium Reduction Plan?
The Medicare Part B premium reduction plans do just as their name implies: your carrier will pay either a portion or the entirety of your premium for outpatient coverage. To check if you’re eligible for this money saving program, look in your summary of benefits or evidence of coverage.
Once in your summary of benefits, there will be a section that says “Part B premium buy-down,” which will tell you how much money you will save if you’re enrolled. You may also call your agent or the customer service line on the back of your Medicare card to learn more about the plan and check your potential savings.
What is the Give Back Benefit in Medicare? You Said the Plan is Not Available in All states, is it Available Where I Live?
As noted in the introduction, the “give back benefit” is simply another name for the Part B premium reduction plan. Currently, 48 states offer the Part B premium reduction plan, so you’re likely eligible to have your monthly premiums reduced. You can again check your summary of benefits or call your agent to determine your eligibility.
Which Companies Offer Part B Premium Reduction?
Humana Medicare Advantage options include the give-back feature on some plans. In some areas, Cigna may also have a Part B premium reduction plan. Even Aetna has a Part B give back in some areas. There are likely more companies offering this type of policy than just the ones we’ve mentioned, and there is a good chance you can qualify for this benefit.
Am I Eligible For the Part B Premium Reduction Plan?
You are only eligible for the Part B premium reduction plan if you pay your own premiums. If you are already receiving any form of assistance to pay your Part B premium then you cannot enrol in a Part B premium buy-down. Further, the plan works in tandem with Social Security, so no direct payments will be sent to you.
How Much Will My Premiums Go Down Under The Part B Reduction Plan?
Premium buy-downs vary anywhere from $0.10 in some areas up to $148.50 in others. The amount you receive depends on the available plans in your area. The same plan may give back more or less money in one county than another county depending on the details of the plan. The exact amount you get back will depend on your insurance carrier and your location.
Will I Receive Direct Payments for My Part B Premium Reduction?
No. If your Part B premium is deducted from your Social Security check every month, this will continue under the give-back plan. Remember, you are still responsible for the remainder of your premium, even if the premium amount is reduced. However, if you pay your Part B premium out of your Social Security check, your monthly check will be larger due to the cost savings.
How to Begin Saving From a Medicare Part B Give Back Plan
In general, eligibility for a Part B premium reduction plan is based on two factors: first, you must be enrolled in Medicare Part and Part B. Second, you cannot already be receiving government assistance that helps to pay all or part of your Part B premium. If you do not meet these criteria do not worry, there are many other options and plans that may still save you money.
Before enrolling, you should also be sure to compare Medicare Advantage and Medigap; Advantage plans have various restrictions that you may not know about.
Depending on your financial situation, Medicare Plan B may not be your best option. For example, plans with high deductibles such as Plan G or Plan F have cheaper premiums. A third plan option could be Medicare Supplement Plan N. Explore your options, there are many ways you could be saving money while maintaining quality healthcare.
FAQ’s
What is a Part B Give-Back?
A Part B give-back is when the Medicare Advantage insurance company pays either a part or the whole of your Part B premium. These plans make more sense than a standard Part C policy, because the Advantage plan handles your claim instead of Medicare.
How Can Medicare Advantage Plans Give You Back Some of Your Part B Premium Money?
The federal government has allowed Advantage plans to contract with Medicare and Social Security to provide this benefit. With an Advantage plan, Medicare does not pay the claim, the policy does. You will see the savings in the form of a larger Social Security check.
Do Medigap plans offer a Part B premium reduction?
No, Medigap plans do not cover Part B premiums because you need Part B to pay its portion of the claim. Medigap doesn’t replace Medicare.
How long will Social Security need to adjust my give back amount?
As a general rule, it will take 1-3 months to receive your Part B premium rebate. Once you start to receive your benefit, you will see a regular increase in your checks.
Will Enrolling In a Part B Premium Reduction Plan Cost Me Money?
As a general rule the premium reduction plan costs $0 each month.
How Do You Qualify For $148.50 Back From Medicare?
If you have Parts A and B, you can enroll in an Advantage plan with a give-back option. These plans reduce your Part B premium up to the full standard amount of $148.50 each month and add the money to your Social Security check.
