Medicare Advantage plans are known for offering extra benefits beyond what original Medicare offers, and one such benefit gaining popularity is the Medicare Part B giveback, sometimes called the “premium reduction” or “money back” benefit. This benefit can reduce the amount you pay for your monthly Medicare Part B premium, either partially or entirely, depending on the plan.
The availability of the giveback benefit is growing. In 2025, about 32% of Medicare Advantage plans will offer some form of Part B premium reduction, which is up from 19% in 2024, according to KFF. The amount of the reduction varies widely. About 28% of plans offer a reduction of $100 or more, while 42% offer between $10 and $100, and 30% offer $10 or less.
[Read: Medicare Advantage vs. Medicare Cost Plans: What’s the Difference?]
What Is the Part B Giveback?
When you enroll in a Medicare Advantage plan (known as Medicare Part C), you still continue to be enrolled in Medicare. What’s different is that Part A (hospital) and Part B (medical) coverage are provided by the private insurer. Most people do not pay a monthly premium for Part A, but even if you are in a Medicare Advantage plan, you still have to pay the Part B monthly premium, which is $185.50 in 2025.
While some Medicare Advantage plans have a separate monthly premium on top of the Part B premium, KFF reports that in 2025, around two-thirds of these plans are not charging an additional premium. The giveback option is an extra benefit that some Medicare Advantage plans offer where the insurer helps pay part or all of your Medicare Part B monthly premium.
How do giveback benefits work?
Each year, the Centers for Medicare and Medicaid Services (CMS) set a maximum amount, called the “benchmark,” for how much it’s willing to pay for an average enrollee’s care in a specific geographic area. Insurance companies then submit bids estimating what it will cost them to provide Part A and B coverage. Plans that bid below the benchmark receive a rebate, which the plan must use in part to enhance member benefits, reduce premiums or lower out-of-pocket costs.
According to the Medicare Payment Advisory Commission (MedPAC), plans are estimated to receive an average rebate of $2,255 per enrollee in 2025. After subtracting administrative costs and profits, approximately $2,075 is available for supplemental benefits with around half of that typically allotted to reducing beneficiaries’ cost sharing or premiums.
“Keep in mind, if you don’t pay for Part B, there is no giveback. Medicaid beneficiaries can choose not pay for Part B, but they will not receive any reimbursement,” says Lisa F. Humes, a licensed insurance agent at HealthMarkets Insurance Agency in Manassas, Virginia. “Reimbursement can take up to three months before the reduction takes effect. It can be a reduction in the premium for Part B taken from your Social Security check or a reduction of the quarterly bill if you receive an invoice.”
[READ: How to Manage Anxiety with Rising Medicare Costs and Potential Coverage Changes]
What to Consider Before Choosing a Plan with a Giveback
While the idea of lowering your Part B premium can be very attractive, you need to consider the big picture. The Part B giveback might reduce your monthly premium costs, but it could also come with trade-offs, such as higher out-of-pocket costs, limited provider networks or a lack of coverage for certain services or medications that you need. Some key factors to consider include:
— Coverage. Confirm that the plan includes what you need, including any prescription drugs or specialized treatments.
— Out-of-pocket costs. Understand the out-of-pocket costs you may incur for doctor visits, prescription drugs or for larger expenses like hospital stays and compare them to what you pay now.
— Plan type. Consider the structure of the plan. Health maintenance organizations (HMOs) usually have lower costs but require you to stay within a provider network, while preferred provider organizations (PPOs) offer more flexibility at potentially higher costs.
— Provider network. Make sure your current doctors and specialists are in-network, as out-of-network care can be significantly more expensive or not covered at all.
— Supplemental benefits. Look for the additional benefits, such as dental, vision, hearing or fitness programs that are offered. Some plans offer only basic services, such as dental cleanings, but not more comprehensive benefits like root canals. Check the fine print before deciding if it is a good match for your needs.
[READ: Medicare Advantage HMOs vs. PPOs: Which Is Right for You?]
How to Find Plans Offering the Giveback
When using the Medicare Plan Finder, click “plan details” for more information about each plan. An overview page will appear, with premium information at the top.
The “Part B premium reduction” line at the bottom will indicate if the plan offers this benefit. You can also contact Medicare Advantage insurers to find out more about a specific plan.
Pros of the Medicare Part B Giveback Benefit
— Lower monthly costs. The main appeal of the giveback is that it reduces your monthly Medicare Part B premium — sometimes partially, sometimes entirely, potentially saving you up to several hundred dollars.
— No extra step to receive the benefit. The reduction is usually applied automatically to your Social Security check or quarterly Medicare bill, which means less administrative hassle for beneficiaries.
— Growing availability. About 32% of Medicare Advantage plans will offer some form of the giveback in 2025, a significant increase from previous years that gives consumers more options.
— Can be combined with other perks. Some plans that offer the giveback also include additional benefits not available in original Medicare, such as dental, vision, hearing, wellness programs, and prescription drug coverage.
Cons of the Medicare Part B Giveback Benefit
— Limited to Medicare Advantage Plans. The giveback is not available to those enrolled in original Medicare or in Medigap (Medicare supplement) plans.
— Potential for higher out-of-pocket costs. A plan that offers a giveback might reduce premiums at the cost of higher deductibles, co-payments or out-of-network charges.
— Delayed benefit. Beneficiaries may have to wait up to three months for the reimbursement or reduction to take effect.
— Possible network and coverage restrictions. Plans offering givebacks may have more limited provider networks or may not cover certain prescriptions or services that are important to the beneficiary.
— Amount varies widely. Not all givebacks are substantial — 30% of plans offer reductions of $10 or less, which may not justify other trade-offs.
Bottom Line
Medicare Advantage plans are private insurance plans that cover the same services as original Medicare but often include extra benefits. One increasingly popular benefit is the Part B giveback, where some plans reduce or eliminate your monthly Part B premium, typically through a rebate applied to your Social Security check or quarterly premium bill.
The Medicare Advantage Part B giveback benefit can help lower your health care costs, but it’s just one factor to consider when choosing a Medicare Advantage plan. While it is a nice perk, a comprehensive review of all plan features and costs are crucial to ensure you’re selecting the option that best supports your health and budget.
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Understanding the Medicare Part B Giveback Benefit originally appeared on usnews.com
