What is the Medicare Part B Giveback Benefit?

Medicare may help cover your healthcare costs, but your cost-sharing responsibilities often include deductibles, premiums, and copayments, including the Part B monthly premium. Even if you’re enrolled in a Medicare Advantage (MA) plan, most people are still responsible for paying the Part B premium each month. With a monthly premium of $174.70 in 2024, increasing in 2025 to $185, finding ways to lower your costs is more important than ever. 

Understanding the Medicare giveback

Some Medicare Advantage plans help lower your monthly costs by offering a Part B giveback benefit. The giveback benefit is a Part B premium reduction. Plans can choose how much of a reduction to offer, from $.10 to the full premium amount each month.

How does the Part B giveback benefit work?

The Medicare giveback benefit is a Part B premium reduction offered as a rebate. In most cases, the rebate is added back into your monthly Social Security amount. Depending on the giveback amount offered by your plan, this could equate to hundreds of dollars back in your pocket each year. 

How do I qualify for an MA plan with the giveback?

To qualify for a Medicare Advantage plan with a Part B giveback benefit, you have to be enrolled in Part A and Part B and be paying your Part B premiums yourself without assistance from a state or federal program, such as Medicaid. You also have to live within the service area of an MA plan with the giveback benefit. 

Is switching to an MA plan with the giveback benefit worth it? 

If you’re considering switching to an MA plan with a giveback benefit, review all the potential costs and benefits of the plans available in your area and compare them to your current coverage. There are many factors to consider before switching plans. Take a look at the prescription drug formulary covered by plans to make sure your medications are included, and make sure you’re comfortable with the medical providers included in a plan’s network. 

How can I find a Medicare Advantage plan with the Part B giveback benefit?

According to the Kaiser Family Foundation, approximately 19% of MA plans offer a Part B giveback.

If you want to enroll in a Medicare Advantage plan with this benefit, a licensed sales agent can help you explore your options and compare plans. 

You may be able to switch plans during one of the following enrollment periods:

• Open Enrollment (October 15 – December 7)

Open Enrollment allows Medicare recipients to make changes to their coverage. You can switch from one MA plan to another (with or without prescription drug coverage); switch from Original Medicare to an MA plan; switch Part D plans; or revery back to Original Medicare (and enroll in a stand-alone Prescription Drug Plan)

• Medicare Advantage Open Enrollment Period (January 1 – March 30)

The MA-OEP allows Medicare Advantage enrollees to make one change to another MA plan during this time.

• Special Enrollment Period 

You may be eligible to participate in an SEP based on qualifying life events.