What Is A Part B Giveback?
You may have seen an ad, or lots of ads, about getting money back in your social security check every month. It sounds great, right? But what is this money and where does it come from? It sounds too good to be true. It’s probably a scam. Am I eligible to get money back every month?
These are things I hear almost everyday, so let’s address each one.
What is a Part B Giveback?
You may have seen this benefit referred to as “Social Security giveback,” “Part B premium reduction,” “Part B giveback,” or even just “money back in your Social Security check,” but they are all referring to the same thing.
In 2023 the standard Medicare Part B has a premium of $164.90, this premium must be paid by each beneficiary unless paid for by another party. For most beneficiaries the payment in deducted from their social security check. Now the “giveback” is a rebate or premium reduction of the Part B cost offered only through Medicare Advantage (Part C) plans. Not all Medicare Advantage plans have this benefit, and not all giveback amounts are the same. If you do decide to take advantage of a Part C plan with a giveback, you will get the money back just by being enrolled in the plan.
Who is eligible for a Giveback?
As we mentioned above, this reduction of premium is offered only through Medicare Advantage plans. That being said, any recipient of both Medicare Part A and B can enroll into a Medicare Advantage plan during a qualifying election period. Whether you can choose a plan with a giveback benefit, will depend on the area in which you reside. Medicare Advantage plans vary by plan area; you will need to check if any plans are offering a giveback and at what amount in your area.
To receive the rebate, a beneficiary must pay their own premiums. Beneficiaries who have their premiums covered by the state or local programs are not eligible.
How large of a rebate will I receive?
The amount for a giveback or Part B reduction is not a standardized amount. These amounts will vary from year to year and from plan to plan. In one plan area there may be a company offering a giveback of $74, another company offering $99, and another company offering $120. Many Advertisements project a giveback amount for the full Part B premium, however, the majority of plans offer a rebate amount less than $100.
To find out what, if any, giveback plans are available in your area, you can use the Medicare Plan Finder Tool, on Medicare.gov or call 1-800-MEDICARE
You can also reach out to us for a benefits review with one of our expert advisors. We will advise you of what plans are available in the area and through a needs analysis help you determine if the plan would be comprehensive to your needs.
Why doesn’t everyone take advantage of this benefit?
While getting a rebate sounds great, there are a few things to consider before choosing a giveback plan. There is some give and take on these Advantage plans to offset the giveback amount. Many plans that offer a giveback will also have higher copays and lower allowance for the additional benefits. Often times giveback plans are advantageous for members with low utilization. This could mean they rarely see a specialist or have medical services other than primary care check ups or they could use VA benefits primarily.
Before signing up for a giveback plan one should consider:
how often you receive medical care
if your doctors in network with the plan
how your medications will be covered
any other important benefits like dental or vision
So is a Medicare Advantage plan with a giveback rebate a good choice for you? Maybe. But it will depend on how the giveback coordinates with the other features of the plan, and it’s important to base your decision on how the plan will serve you overall.
We are here to help you navigate those decisions.