How does a ‘give back’plan work?

by Sandra Teel

Medicare insurance broker

If you’ve signed up for one of those “give back” plans, but you’re still not sure know how it works, here’s the scoop.

When someone is on Medicare, they pay a Part B premium. Typically if they are on Social Security, this premium is deducted from their Social Security check each month. An insurance company, such as SCAN, is paying the “give back” amount to the Social Security Administration for the named beneficiary. That “give back” amount will be deducted from the Part B premium the beneficiary pays.

For example: Beneficiary receives $2,000 monthly in Social Security Medicare Part B: -$170.10 deduction for 2022 Total Social Security check: 1,829.90 monthly Or: Beneficiary receives $2,000 monthly in Social Security Medicare Part B: -$170.10 deduction for 2022 Part B “Give Back”: $125 Total Social Security check: $1,954.90 monthly Essentially, you are getting $125 more per month in your Social Security check.

What if you are on Medicare but not taking Social Security yet? You will see a reduced Part B premium owed when you get your Medicare Part B premium quarterly bill.

The Social Security Administration is warning people that the new $12 monthly credit may not show up on your Social Security payment or bill until April, but they will retroactively pay you from January.

You should always check to see if your doctors and prescriptions are covered before you sign up. In some cases, your doctor may not be with that plan, or you may pay more for your prescriptions.

It’s recommended to call a trusted Medicare insurance broker if you still have questions or need help.

Sandra Teel can be reached at (657) 204-4224.