The standard monthly Part B premium cost for beneficiaries in 2021 is $148.50. Wouldn’t it be nice if your clients could get some of that money back? Good news, this is a possibility!
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Below is an overview of the Medicare Part B Premium Giveback. If you’re an agent selling Medicare, you’ll definitely want to make sure you know the ins and outs of this plan benefit.
What Is the Medicare Part B Premium Giveback?
A Part B Premium Giveback is the carrier’s coverage of a designated portion of an enrollee’s Part B premium. The carrier notifies the Centers for Medicare & Medicaid Services (CMS) and Social Security Administration of this agreement to take on the cost of the specified amount.
This incentive is found within select Medicare Advantage (MA) plans, though, it is important to note, the Part B Giveback can be restricted to specific states and counties. It’s important to check the service area of the MA plans featuring this incentive to make sure your plans with this benefit are available to your client(s).
Who Is Eligible for the Giveback?
Beneficiaries who pay their own Part B premium are eligible for the Giveback. Meaning, beneficiaries cannot receive Medicaid or any other assistance from a health program that could potentially pay their Part B premium.
Also, important to note, the Giveback incentive only participates with Social Security. There are no direct payments made to beneficiaries by the carrier.
How Do Beneficiaries Receive the Funds?
The Part B Giveback is credited monthly on the beneficiaries’ Social Security check. Judy Gee, a Broker Relationship Manager with Humana, explains that it can take a few months for the Giveback to be processed which could result in the member receiving a lump sum amount on their Social Security check to include the months (approximately two or three) prior to activation. Then, the specific dollar amount of the benefit will be credited monthly through Social Security.
For example, during Annual Enrollment Period (AEP), a beneficiary is enrolled in an MA plan featuring a $50 Part B Giveback. Their coverage goes into effect, January 1, however it will take two months for the Giveback benefit to become active. The first Social Security check upon successful enrollment and active coverage will include $100 ($50 for January and February). Moving forward, the beneficiary will see the designated $50 Giveback on their check each month.
Just the same as activation of the benefit, deactivation of the Giveback can take a few months. So, if it takes two months for the disenrollment to be acknowledged by CMS and Social Security, the member will receive a check with the overpayment for the two months subtracted.
Carriers like Humana, Wellcare, and Cigna, just to name a few, offer MA plans with the Part B Giveback. Ritter can provide contracting for carriers that offer this benefit and also help you navigate through any questions you may have regarding it. Complete your free registration with Ritter today and let us help you offer this MA plan benefit!