Medicare Part B covers essential services like doctor visits, outpatient care, preventive screenings, and durable medical equipment. Unlike Medicare Part A, which is premium-free for most people, Medicare Part B is not free. There is a monthly premium for Part B coverage. This premium may be discouraging if you are low income or if you are healthy and don’t want to pay for coverage. Simply opting out of Part B isn’t a good idea because if you join later, you may be assessed a lifetime penalty.
If you are hoping to get Medicare Part B for free, there is some hope! Here are a couple of ways to reduce or eliminate the premium.
Can you get Medicare Part B for free?
Medicare Part B is technically never free. However, your premium can be fully or partially paid on your behalf. There are two ways to get your Part B premium reduced. One method is only for people with low-income, but the other method is available regardless of income. Below, we break down both legitimate ways to reduce your Part B premium.
1. Medicare Savings Programs (MSPs) for Low-Income Beneficiaries
The Medicare Savings Program (MSP) is run by the state’s Medicaid office and is designed to help people with limited income. There are different levels of MSP depending on income, but all levels will pay the Part B premium. If your income falls in the lowest income bracket, the program may also pay the both Part A and Part B premiums, deductibles, copays, and coinsurance.
Income below the Federal Poverty Level?
You qualify as a Qualified Medicare Beneficiary (QMB) and Medicaid will pay your Part A and Part B premiums, as well as your deductibles, copays, and coinsurance.
Income Between 100-120% of the Federal Poverty Level:
You qualify as a Specified Low-Income Medicare Beneficiary Program (SLMB) and Medicaid will pay your Part B premium. Some states may include deductibles, coinsurance and copays.
Income Between 121-135% of the Federal Poverty Level:
Qualifies you as a Qualified Individual and Medicaid will pay your Part B premium.
The Medicare Savings Program helps people with low income afford health insurance. If you are not low income, then you cannot benefit from this option. However, there is another option to reduce your Part B premium. Continue reading below!
2. Medicare Advantage Part B Giveback Benefit
Some Medicare Advantage plans offer a Part B premium reduction, also called a Part B Giveback. The Part B Giveback benefit is a carrier’s partial or full payment of an enrollee’s Medicare Part B premium. This giveback goes directly to Social Security and reduces the Part B premium by the amount stated in the plan benefit. The Part B giveback varies between plans and can be up to the amount of the standard Part B premium.
Example:
If your Part B premium is $202.90 and your plan offers a $185 giveback:
- Your Part B Premium is reduced to $17.90 ($202.90 – $185 = $17.90)
- Your Part B is not $0, just reduced to $17.90. This is the amount you will owe to Social Security.
Not all plans include a Part B giveback. If you are looking for a plan that gives the most Part B giveback, you need to search all plans in your area. An independent licensed agent that is contracted with all major carriers can help you find what you need. They will also help you review the other benefits of the plan. Sometimes a higher Part B giveback can mean a shift in other benefits. How benefits shift depends on the plan, so we always encourage you to seek help from a licensed agent.
How does Part B Giveback work with the Medicare Savings Program?
If you receive the Medicare Savings Program and your Part B is already paid on your behalf, then you will not get the Part B Giveback. A Giveback plan would be a wasted benefit for you and you should consider another plan.
How does Part B Giveback work with an Income Related Adjustment Amount (IRMAA)?
If you are a high-income earner and you have an Income Related Adjustment Amount (IRMAA) then your Part B premium is higher than the standard premium. The good news… IRMAA does not prevent you from getting a Part B Giveback benefit! However, plans can only pay up to the giveback amount listed on the plan benefit. Your premium would be reduced by the benefit amount, and you would be responsible for the balance. This can still save you some money monthly by reducing your premium!
How is the Part B Giveback applied to the Part B premium?
The plan’s giveback benefit is applied to your Part B premium directly through Social Security. It reduces your Part B premium by the stated benefit amount on the plan. The plan takes care of logistics. If you are already receiving your monthly Social Security Benefits, then this amount will be reflected in your monthly deposit. The Part B premium is automatically deducted from your monthly Social Security benefits prior to it being deposited in your account. Once the Part B Giveback is applied, your monthly deposits will increase by the giveback amount.
If you have not started receiving your Social Security benefits yet, then your giveback will be reflected on your Part B premium bill. Medicare bills you quarterly for Part B when you are not taking your Social Security benefits. Your Part B premium bill will be reduced by the amount of the Giveback benefit. Make sure you keep an eye out on your bills! You must continue to pay any balance of your Part B premium when you have a Giveback benefit.
Important Note on Giveback Timing: When you enroll in a new plan with a Part B giveback benefit, it can take a couple months for the benefit to process and “kick in” with Social Security. If the giveback benefit starts late, past the plan start date, then Social Security will reimburse you for prior months.
Important Reminders About the Part B Giveback:
- A giveback does NOT make Part B free, it reduces the Part B premium
- The Giveback amount varies by plan
- You must stay enrolled in Part B and pay any remaining balance
- If the Medicare Savings Plan pays your Part B premium, then you cannot benefit from a Part B Giveback
Conclusion
While Medicare Part B is never truly free, there are legitimate ways to reduce the Part B premium or have it fully paid on your behalf. Low-income beneficiaries may qualify for a Medicare Savings Program that pays the premium entirely, while others with higher incomes can still lower their costs through a Part B Giveback benefit. Because Medicare Advantage Part B Giveback amounts and plan benefits vary by location, comparing all available options is always a good idea. Working with an independent, licensed Medicare agent can help you choose a plan that lowers your Part B costs without sacrificing the coverage you need.
