A Social Security Medicare premium refund — also known as a premium giveback — refers to Medicare Advantage plans that refund money that otherwise would go toward Medicare Part B premiums.
Since most people pay their Medicare premiums directly from Social Security benefits, you’ll get to keep more money in benefits because less is paying for Part B. Only a small portion of Medicare Advantage (MA) plans offer these partial refunds.
You’ve probably seen ads about MA plans claiming to “add money back to your Social Security check every month.” But just because a plan refunds part of your premiums doesn’t mean it’s the best plan for you.
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If you choose to get coverage from a private Medicare Advantage plan rather than original Medicare, you usually must pay the Medicare Part B premium, which is $174.70 a month for most people in 2024.
But you could also be charged a monthly premium for your Medicare Advantage plan, which averages $18.50 a month in 2024. This extra fee doesn’t apply to all MA plans, however.
In 2024, 66 percent of Medicare Advantage plans with prescription drug coverage charge no premiums other than the Medicare Part B premium, according to KFF. About 19 percent of Medicare Advantage plans offer some reduction in the Part B premium to participants. In 2023, 10 percent of regular MA plan enrollees chose a plan with premium refunds, and 7 percent of enrollees in special needs plans (SNPs) had this benefit. SNPs are Medicare Advantage plans specializing in people with chronic conditions or enrolled in both Medicare and Medicaid.
The size of the refunds can vary from less than $10 to more than $100 a month, according to Jeannie Fuglesten Biniek, associate director of the program on Medicare policy for KFF.
Despite the small percentage of plans offering partial refunds, the premium givebacks are a big feature of Medicare Advantage ads. Two-thirds of Medicare Advantage ads that brokers and other third parties sponsored were promoting the potential for a recipient to get money back in their Social Security check, according to a KFF study of Medicare Advantage plan marketing.
