The Medicare Giveback benefit, also known as Medicare Advantage plans with Part B Premium Reduction, is a benefit offered by private insurance companies for certain Medicare Advantage plans. It covers the entire Medicare Part B premium for the policyholder and is deducted from their Social Security checks each month. Not all Medicare Advantage plans offer this benefit and it can be found by searching by ZIP code. Seniors have many options for healthcare coverage and it’s important to understand if the Medicare Advantage Give Back Benefit is the best fit for their needs before enrolling.
How Does Medicare Giveback Benefit Work?
Medicare Part B requires a monthly premium payment, which in 2023 is approximately $164.90 for most beneficiaries. This premium is automatically deducted from the individual’s Social Security payment before being deposited or sent to them.
The Medicare Give Back Benefit can lower your Part B premiums, which is a great way to reduce healthcare costs for seniors enrolled in a Medicare Advantage plan. With this benefit, your carriers may pay for a portion or all of your outpatient coverage premium each month. Individuals enrolled in a Medicare Advantage plan are responsible for paying both Part B and the premium for the Advantage plan. Currently, two-thirds of all Advantage plans offer $0 premiums, with only the Part B premium being paid by the enrollee.
However, some plans go further by offering “giveback” rebates that cover part of the Part B premium. This premium reduction has been available since 2003 and is becoming more widespread, with Advantage plans that offer it as a unique benefit.
To receive the Giveback Benefit, what steps should I follow?
For most Medicare beneficiaries, the cost of Part B is deducted from their Social Security checks. Beneficiaries who don’t receive Social Security retirement benefits are invoiced directly for their Part B premiums. The giveback rebate can be used by people in either scenario:
- If you’re receiving Social Security retirement benefits and you enroll in an Advantage plan with a giveback rebate: the amount that’s deducted from your check to cover the cost of Part B will be lower.
- If you pay your premiums directly to Medicare, you’ll be invoiced a smaller amount.
Only those paying the Part B premium and enrolled in a plan offering the benefit are eligible to receive it. The giveback is not available for those receiving Medicaid or other assistance. This benefit is exclusive to Medicare Advantage plans and may or may not include prescription drugs (Part D). It is not offered through Medicare Supplement plans.
Are All US ZIP Codes Accept Giveback Benefits?
All ZIP Codes in the U.S. and territories are eligible for Medicare Advantage plans, making them eligible for the Giveback benefit. However, not all ZIP Codes may offer such plans. Each ZIP Code has at least one Medicare Advantage plan available, but it may not include the Giveback benefit. This benefit is only provided through Medicare Advantage plans, which are offered by private insurance companies. To find a plan that includes this benefit, it’s best to speak with a licensed Medicare agent.
This benefit is also referred to as the Medicare Part B Premium Reduction. The program may have different names in different regions, but they are all Medicare Advantage plans with the same function. To qualify for it you must live in the service area of a plan that offers a premium reduction. Currently, the benefit is available in 48 states, including Texas.
Note that the Medicare Part B Giveback plans are administered by Social Security, and no direct payments are made to you by the carrier.
Can I Save Money With Giveback Benefit?
The premium reduction amount can differ greatly between plans and locations, with some offering as low as $0.10 per month, while others may cover the full Part B premium. It’s crucial to thoroughly review each plan’s details as there is no standard benefit set by Medicare.
Keep in mind that the giveback benefit may change from year to year and is not guaranteed to remain the same. Medicare Advantage plans can alter their premiums and benefits, leading to a reduction in your current premium reduction amount.
Each fall, review your Annual Notice of Change (ANOC) to determine if the giveback benefit will persist and what the new amount will be. If your benefits are altered, take advantage of the Annual Election Period to find a plan that better meets your requirements and budget. The giveback benefit is open to anyone eligible to enroll in Medicare Advantage, regardless of income. However, you must pay your own Part B premium.
Additional Takeaways From Medicare Part B Giveback
Even though only Medicare Advantage plans offer this benefit and because of it this sounds very tempting, those plans come with many limitations. Some plans may not be worth enrolling in just because of the premium reduction option. If you want additional coverage you have two options: purchase a Medigap policy or enroll in an MA plan. If you want to keep Original Medicare coverage, you can choose some of the most comprehensive Medigap policies to keep your premiums low a get the most benefits from it.
However, it is important to compare all the health insurance coverage options before deciding which one is the best for you. Medicare licensed agents can help you compare all plan options available and find the most suitable option for your unique budget and healthcare needs.
If you have more questions about Medicare Advantage plans and giveback benefits in Texas, you can call or text Turning 65 Solutions. Our experienced agents are here for you!