Understanding Medicare Premium Rebates: Add Money Back to Your Social Security Check Every Month

A Medicare premium rebate to Social Security refers to Medicare Advantage plans that rebate some money that would otherwise go toward Medicare Part B premiums.

Since most people pay their Medicare premiums directly from Social Security benefits, you’ll keep more money in benefits because less goes to Part B. Only a small portion of Medicare Advantage (MA) plans offer these rebates partial.

You’ve probably seen ads for MA plans that say, “Add money back to your Social Security check every month.” But just because a plan reimburses part of your premiums doesn’t mean it’s the best plan for you.

What is a Medicare Part B reimbursement benefit?

If you decide to get coverage from a private Medicare Advantage plan instead of Original Medicare, you generally must pay the Medicare Part B premium, which is $164.90 a month for most people in 2023. You may also you may have to pay an additional monthly premium for the plan.

In 2023, 73% of individual Medicare Advantage plan beneficiaries with prescription drug coverage pay no premiums other than the Medicare Part B premium, according to KFF, previously Kaiser Family Foundation. Some plans also reimburse a portion of Part B premiums to participants.

About 1 in 6 Medicare Advantage plans offer premium rebates, KFF says. 10% of regular MA plan beneficiaries are in a plan with premium refunds, and 7% of special needs plan (SNP) beneficiaries have this benefit.

SNPs are Medicare Advantage plans that specialize in people with chronic illnesses or who are enrolled in Medicare and Medicaid. The size of the rebates can range from less than $10 to more than $100 a month, according to Jeannie Fuglesten Biniek, associate program director of Medicare policy for KFF.

• If you pay Medicare premiums of your Social Security benefits, this amount is credited to your benefits and you will receive more money from Social Security each month.
• If you have not applied for Social Security benefits and you pay your monthly premiums directly to Medicare, you will pay a reduced Part B amount each month.