How to Qualify for the $144 Medicare Giveback Benefit 2024 - Assurance IQ (2024)

The Medicare Part B giveback benefit covers partial or full monthly premium payments for some Medicare Advantage beneficiaries. To be eligible for this, you must meet the following criteria:

• You must receive Part A and Part B benefits
• You must pay your own Part B premium
• You must live in a qualifying service area
• You must be enrolled in a participating Medicare Advantage Plan

These savings may be credited to your Social Security check or deducted from your monthly Part B premium payment. However, Medicare Advantage Plans with givebacks may limit coverage or savings for other services such as copays, network requirements, or prescription drugs. Read on to learn more about how this benefit works.

How Does The Medicare Part B Giveback Benefit Work?

You must meet certain eligibility requirements and enroll in a participating plan to receive the giveback benefit.

Eligibility

You must be enrolled in Medicare Part A and Part B and live in the same service area as the Medicare Advantage Plan you are seeking. Additionally, you must pay your own Part B premium (without state-funded or local financial assistance) and be a citizen or legal resident of the U.S. for at least five years.

What Is The Money For?

As a standard practice, the Centers for Medicare and Medicaid Services (CMS) gives money back to Medicare Advantage Plan providers through rebates each year. The Medicare Payment Advisory Commission estimated an average rebate of nearly $200 per beneficiary, per month, in 2023.

Medicare Advantage Plans can choose to use their rebates in one of several ways: pay for extra benefits, lower cost-sharing requirements, or reduce Part B (or Part D) premiums. In the case of Part D, drug companies are required by law to offer a rebate if they raise drug prices faster than the current rate of inflation.

Do All Plans Offer The Giveback?

Only some Medicare Advantage Plans feature giveback benefits. You must be enrolled in Original Medicare (Part A and Part B) to purchase a participating Medicare Advantage Plan from a private insurer. Medicare Advantage requires an additional Medicare Part C premium unless you have a $0 premium plan. You must also continue paying your Part B premium, making the Social Security giveback program helpful in saving you money every month.

How Do You Receive The Funds?

If you use your Social Security check to pay your monthly Part B premiums, enrolling in a give-back-eligible Medicare Advantage Plan means you will see a credit for the full or partial premium amount applied to your Social Security check. If you use another method to pay your premium, your savings will simply be deducted from the amount you owe Medicare each month.

Does Receiving The Payment Affect Other Medicare Costs?

Medicare Advantage requires you to pay another premium in addition to Parts A and B each month, unless you are enrolled in a $0 premium Medicare Advantage Plan. However, the cost of Medicare Advantage is often lower than enrolling in Original Medicare and a stand-alone prescription drug Part D plan. In addition, Medicare Advantage often includes additional benefits like hearing, vision, and dental services.

Since Medicare Advantage Plans must choose between enhancing the healthcare services they offer or extending you the giveback, you may end up paying more for standard Part C benefits. For example, your Medicare Advantage Plan may opt to offer a Part B rebate but require you to pay higher copays, specialist fees, or other out-of-pocket costs.

How Can You Find a Plan With The Giveback?

• Re-evaluate your existing benefits and budget: If you are satisfied with the coverage and affordability of your existing Medicare benefits, it may not be worth switching plans for giveback benefits. However, if you are seeking new coverage to expand your benefits, change health networks, or make other changes to suit your changing needs, it may be worthwhile to see which Medicare Advantage Plans in your area also offer giveback benefits.
• Research your options: Make sure you are not disqualified from the giveback program for receiving help to pay your Part B premiums. Additionally, you cannot be enrolled in Medigap if you seek Part C benefits.
• Know your deadlines: Your first opportunity to enroll in Medicare is during your Initial Enrollment Period, when you turn 65. You can enroll in Medicare Advantage then, or make changes at any later Annual Enrollment Period, which runs from October 15 to December 7 every year. Those with Medicare Advantage Plans can also make changes to their plans during the Medicare Advantage Open Enrollment Period, which runs from January 1 to March every year.
• Search by zip code: You can search for participating Medicare Advantage Plans online at Medicare.gov. Since plans only offer giveback benefits in certain service areas, you can search by zip code to explore your options.

How Can You Find a Plan With The Giveback?

Eligibility for the giveback is limited to beneficiaries who pay their own Plan B premiums. You may not qualify for the Social Security giveback program if you receive aid from Medicaid or a local agency to pay your Part B premiums. You must also enroll in Medicare Advantage, either during your initial or open enrollment period, to qualify.

Additionally, you may not hold Medicare Advantage and Medigap coverage at the same time. Medigap, or a Medicare Supplement Policy, applies only to beneficiaries of Original Medicare and helps cover out-of-pocket expenses such as premiums, coinsurance, and copays.

Putting It All Together

You may be eligible for $144 back from Medicare through the Social Security giveback program. Some Medicare Advantage Plans offer a rebate on Part B premiums, which beneficiaries must continue to pay after enrolling in Part C benefits. You must meet certain qualifications and find participating programs in your area to receive the giveback benefit.

You must be enrolled in Original Medicare and pay your Part B premiums without state or local financial aid to be eligible for the giveback. Only some Medicare Advantage Plans offer this benefit, and in select service areas. Eligible beneficiaries may receive a full or partial Part B rebate, either credited to their Social Security check, or deducted from their Medicare balance.