What is a Medicare Giveback Plan?

Are you looking for a way to reduce out-of-pocket healthcare costs in retirement?

One option is to enroll in a Medicare giveback plan, sometimes called a Medicare Part B premium reduction plan.

Medicare giveback plans are a unique offering within Medicare Advantage plans. These plans provide a way to reduce Part B premiums, which are typically deducted from Social Security benefits.

This means you’ll get more money in your Social Security check each month. However, it’s important to note that not all Medicare Advantage plans include this giveback benefit.

These plans aren’t very well known. But they can be a great match for the right individual. Here’s how they work:

How Medicare Giveback Plans Work

To enroll in a Medicare Advantage plan of any kind, you must also be enrolled in Original Medicare, which includes both Medicare Part A (hospital insurance) and Part B (physicians’ charges, outpatient services, and durable medical equipment).

Part A doesn’t have a premium in most cases. But as of 2024, Part B has a premium of $174.70. Some higher-income individuals may be required to pay more under IRMAA rules.

When you enroll in a Medicare Advantage giveback plan, however, your Medicare Advantage insurance company ‘gives back’ some or all of your Part B premium back to you. This amount is directly credited to your Social Security check, effectively increasing your monthly cash benefits. The specific amount you receive can vary depending on the plan and your location.

The amount of the “giveback” varies by plan. Some plans also offer additional benefits. So it’s a good idea to shop carefully before buying any Medicare Advantage plan. Better yet, you can get free expert plan recommendations and quotes simply by working with a Medigap Advisors Personal Benefits Manager. 

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How to Qualify for a Medicare Giveback Plan

To be eligible for a Medicare giveback plan, you must meet certain criteria:

Once you have met these requirements, you can start shopping for giveback plans. You can compare plans based on factors such as the amount of money they return, the type of benefits they offer, and their customer service ratings.

Who Should Consider a Medicare Giveback Plan… And Who Shouldn’t

A Medicare giveback plan may be a good match for you if you are in very good health, you don’t need to see a doctor very often, and you can afford to spend a few thousand dollars in out-of-pocket costs if you need care in the future.

This is the case with any Medicare Advantage plan.

You should also be comfortable seeing doctors or providers within your MA plan’s managed care network.

If you want to limit your out-of-pocket risk, you want the freedom to see any doctor or both. You should consider Medigap Plan G or one of the other standardized Medicare supplement insurance plans available in your area.

Plan G is also available in a high-deductible version, which is a great balance between protection and monthly affordability.

Or if you don’t have pre-existing conditions you need to seek treatment for anytime soon, the more affordable Medi-Share 65+ health sharing plan is another option to consider.