When shopping for a Medicare Advantage (Part C) plan, you’ve probably seen some offers that include a Part B return of premium benefit. Sounds perfect, right? Many could use the savings on their Part B premium. But how do plans offer this? What does it mean to you? Let’s take a moment to explain what a Medicare Part B rebate benefit is, how it works, and more.
Medicare Part B Rebate Benefits: The Basics
A Medicare Part B rebate, also known as Social Security rebate, senior rebate program, or Part B premium reduction, is a benefit offered by some Medicare Advantage plans. Part B is the section of Medicare that provides coverage for medical expenses, such as regular doctor visits, outpatient services, certain diagnostic tests, and some medications administered during health services or prescribed afterward.
All Medicare Advantage plans cover Part B, which is legally required by Medicare, and enrollees pay a monthly premium as well as any deductibles, copayments, and coinsurance associated with care.
A Part B rebate provides a rebate benefit, sort of like a rebate, in which your health insurance provider pays a portion of your Part B premium, making your monthly payment more affordable.
How a Medicare Part B Rebate Works
Whether your plan offers a Part B rebate, as well as the amount of that rebate, depends on your health insurance plan. Some plans offer this benefit and others do not. Plus, the Part B reimbursement spectrum is wide-ranging: Some plans will give you back about 10 cents and others will give you the full amount of your premium.
Rebate amounts vary widely because health insurance companies balance the total cost of a plan to offer additional benefits. Typically, the money you are reimbursed for your premium comes from another part of your plan, which could mean fewer additional benefits or more cost-sharing provisions. It really depends on where you need your plan to support you the most. For some, that’s a refund of premium, and for others, it could be lower cost sharing.
Additionally, in terms of payment, how you receive reimbursement depends on how you choose to pay your monthly Part B premium. Some Medicare Advantage enrollees pay this with their Social Security check and others pay it directly to Medicare. Depending on how you pay your Part B premium, your refund may be administered through the Social Security Administration or offered as a Medicare credit on your Part B premium statement.
Are Medicare Part B premiums deducted from Social Security?
Yes, as mentioned, you can pay your Part B premium through Social Security. But how exactly does that work? Most plans keep it simple. If you are enrolled in a Medicare Advantage plan that offers a Part B rebate benefit, your rebate amount will be credited directly to your Social Security amount.
Eligibility for a Medicare Part B Rebate
To qualify for the Medicare rebate benefit, you must first be enrolled in a Medicare Advantage plan that offers this benefit. On top of that, you must also be enrolled in Original Medicare (Parts A and B), pay your own Part B premium without assistance from Medicaid or another source, and live within the ZIP code where your plan offers rebate.
How much money can I recover from the refund benefit?
The Centers for Medicare and Medicaid Services (CMS), which regulates the offerings provided by Medicare Advantage plans, has not established a standard Part B amount that health insurance companies must provide with this benefit. This means there is no “average” reimbursement amount that you can assume a Medicare Advantage plan will offer.
Rebate amounts can range from a few dollars to the full cost of your premium each month, which is $174.70 starting in 2024. That can mean big annual savings. Some plans, like the Journey Smart plan offered by HealthPartners, can even offer members up to $960 a year out of pocket.
Another thing to consider is that Medicare Part B premium and deductible costs can change each year. If you are already enrolled in a Medicare Advantage plan that offers a rebate, you will be able to see if your plan’s rebate amount will change next year when you receive your plan’s Annual Notice of Changes (ANOC) in the fall. If you change, you can shop for a plan that better fits your needs during the Medicare Annual Enrollment Period (AEP).
When will I receive my Medicare Part B reimbursement?
Your Part B rebate is generally administered monthly. However, for some who choose to pay through Social Security, it is not uncommon for it to take a few months to receive their refunds. If so, you will be reimbursed each month since you joined your plan.
Is the Senior Refund Program Legit?
A Part B rebate offered by a Medicare Advantage plan is a legitimate benefit, one that helps many people! However, it is normal to be wary of offers you are not familiar with. Medicare scams are on the rise and you want to do everything you can to protect yourself. Often, these fraudulent offers can revolve around Medicare Advantage benefits, such as premium rebates and Medicare Flex cards.
Staying informed is the best way to protect yourself. In terms of returning Part B, legitimate benefits will only be offered to you as part of a Medicare Advantage plan. This is not a benefit that you can purchase separately. If someone contacts you claiming to be from Medicare or you see an ad claiming to sell you a Part B rebate, be careful. This is especially true if they make big claims, like “You’ll earn more money on your Social Security each month,” which we know isn’t exactly how the benefit works.
Medicare Advantage Plans That Give You Money Back
If you’re interested in this benefit, it’s important to ask the right questions as you shop around to make sure your Medicare Advantage plan meets your needs. Part C plans that offer premium return often do not include Part D prescription drug coverage. However, some do, such as HealthPartners’ Journey Smart plan, which bundles medical and prescription drug coverage , plus additional benefits like a Part B rebate.
HealthPartners is a PPO plan with a Medicare contract. Enrollment in HealthPartners is dependent on contract renewal.
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