If you have enrolled for a Medicare Advantage Plan, you may be eligible for a Medicare giveback benefit. The giveback benefit reduces your Medicare Part B premiums, and it can add up to big-time savings for most people since they put money back into their monthly Social Security check. However, the giveback benefit is not available to all Medicare Advantage beneficiaries.
To qualify for a Medicare giveback benefit, you must be enrolled in Medicare Part A and B. You must be responsible for paying the Part B Premiums; you should not rely on state government or other local assistance for your Part B premiums. You should also live in a Zip code service area of a plan that provides the giveback benefit to its enrollees. Additionally, you must enroll in a Medicare Advantage plan that provides a giveback benefit.
What is the Part B premium reduction benefit?
When you enroll for Medicare Part B, you will be required to pay a monthly premium of $164.90 in 2023. If the plan offers a premium reduction, you will pay less for the monthly Medicare Part B premium. This reduction ranges from 10 cents up to the full Part B premium amount i.e. $164.90.
If your Part B premium is deducted from your Social Security check, it means that the monthly check will reflect the lower amount. While you won't technically get a check back, you will pay the reduced benefit and save the amount you would have paid. If you pay the monthly premium using other means other than Social Security, the premium reduction will be credited to your monthly statement.
If you get a full premium reduction, you won’t have a Part B premium to pay for the month. However, if you get a $100 benefit reduction, you would only pay $64.90 per month, and save the $100.
How to qualify for Part B giveback
You can qualify for Part B giveback benefit if you are enrolled in Original Medicare (Part A and B), and you live in a Zip code service area of a plan that offers the benefit. Currently, 48 states offer giveback benefits, and you must research and compare plans to find a Medicare Advantage plan that provides the giveback benefit. Also, you must pay your premiums, and not rely on state government or other local assistance for your Part B premium.
How to find plans that offer the giveback benefit
To take advantage of the Medicare giveback benefit, you must live within a service area where the benefit is offered. Plans with Part B giveback benefits are sold across 48 states, but they are not available in every plan.
You can find Medicare Advantage Plans with a giveback benefit by calling your insurance company. The company will review all its options in your location to find Medicare Advantage Plans that offer the giveback benefit. However, your insurance company will not disclose plans offered by its competitors.
Apart from your insurance company, you can also contact an independent licensed insurance agent to find plans with a giveback benefit. Agents often have access to Medicare plans offered by different carriers, and can compare plans available in your service area.
You can also find Medicare plans with the giveback benefit on the Medicare website. You will have to sift through all Medicare Advantage plans available by Zip Code to find plans with a Medicare giveback. Before enrolling in a plan, check if the plan offers prescription drug coverage, coverage for preferred services, how much you will pay in annual out-of-pocket maximums, and if the plan has your preferred doctors in-network.
What factors should you consider when choosing a Medicare Advantage plan?
Apart from the giveback benefit, there are several other factors you can consider when comparing Medicare Advantage plans. Here are factors you can consider:
Prescription drug coverage
Most Medicare Advantage Plans include Integrated Part D Prescription coverage. You should consider if the plan covers your specific prescription drugs and the pharmacies that are in the plan provider’s network.
In-network doctors and hospitals
Some plans may have a small network of doctors and hospitals, and you will have to incur higher costs to visit an out-of-network doctor or hospital. Check if your preferred doctors or hospitals are in the plan’s provider network.
Out-of-pocket costs
Consider the total out-of-pocket costs that you will incur under the Medicare Advantage plan. These costs do not include prescription costs, which are counted separately.
Benefits provided
Most Medicare Advantage plans provide extra coverage for things like dental support, hearing aids, vision, over-the-counter drugs, and in-home support. They may also provide additional supplemental benefits depending on your medical needs.
Limitations of Medicare giveback benefit
While a giveback benefit can lower the monthly premiums you pay to your Medicare Advantage plan, this benefit may have several downsides.
Giveback benefits are not available nationwide
Medicare Advantage plan availability varies by ZIP code, and not every plan has a giveback benefit. If you find a Medicare Advantage plan with a giveback benefit in your area, you should consider its benefits and drawbacks before enrolling.
Reduction in benefit
Medicare Advantage plans cover everything that Original Medicare covers, and may include additional coverage for vision, dental, hearing, etc. However, plans that offer a giveback benefit often eliminate the extra benefits to compensate for the premium loss. Before signing up for a Medicare Advantage plan with giveback benefits, compare the coverage options against the savings you get.
Savings may not last in the long run
While a giveback benefit may be tempting, you should examine the Medicare Advantage plan to know how much you will pay in annual deductible, co-pays, or co-insurance. Also, consider if your preferred doctors are in-network and if your desired services are covered.
The amount of giveback benefit varies
The giveback benefit varies from as low as 10 cents to a high of $164.90. Consider if the premium reductions received are worth it compared to other costs you will pay and benefits covered or excluded. Also, the premium reductions could change from year to year.
