NEW YORK, September 21, 2021 (Newswire.com) - iQuanti: If you have Medicare, you probably pay a monthly premium of $148.50 (in 2021) in order to receive Medicare Part B benefits and coverage. However, there is a program called the Medicare giveback benefit, or Part B premium reduction plan, that is offered by some Medicare Advantage plans and covers some or all of your Part B monthly premium.
This is not an official Medicare program and isn't offered by all plans, but it's possible to find one where you'd pay a reduced premium amount up to $148. This can help maximize your savings while on Medicare, but it's important to understand what the program is and potential drawbacks before making a decision.
What is the Part B premium reduction benefit?
The Part B premium reduction is when a Medicare Advantage plan reduces the amount you pay toward your Part B premium. The reduction could range from less than $1 to the full premium amount.
This giveback benefit means you're paying less for the monthly premium, but it doesn't mean you get the money back. Instead, you just pay the reduced amount and are saving money that you'd normally otherwise pay.
If your premium comes out of your Social Security check, your check amount will be higher because of the giveback benefit. If you pay your plan directly, your monthly statement would be credited with the benefit.
If your plan offers a full refund, you wouldn't pay a Part B monthly premium at all.
It's important to note that it could take Social Security up to three months to process the premium rebate, and after that time, you'll see an increase in your check amount.
How to find plans that offer the giveback benefit
You can use Medicare's Plan Finder to find Medicare Advantage plans in your area that offer the giveback benefit.
To find out how much the giveback is, look under the "premiums" section in the Plan Details of your search. Plans with a giveback will have a "Part B premium reduction" listing and amount.
Or you can search for Medicare giveback benefits by zip code to find plans in your area.
Medicare giveback benefit potential drawbacks
The giveback benefit can definitely be appealing as it puts money back in your pocket right now. However, it may not save you money overall depending on a few factors. Here are the major potential drawbacks of a Medicare Advantage plan with the giveback benefits.
Limited options. Only a select few Medicare Advantage plans offer a giveback benefit. That means prioritizing the giveback benefit may limit your Medicare Advantage choices. Remember to weigh the giveback benefit against potential coverage costs — including dental, vision and hearing coverage, which some Medicare Advantage plans offer.
- Potential to change year-over-year. Medicare Advantage plans are offered by private insurance companies, and while some aspects are standardized through Medicare, the giveback benefit isn't one of them. That means the insurance provider is able to change the giveback benefit amount annually. Of course, you can also change your Medicare coverage in such a situation, either by exploring other Medicare Advantage plans or re-enrolling in Original Medicare during open enrollment.
Source: iQuanti, Inc.