A Medicare Advantage premium reduction occurs when a plan's bid is below the Medicare Advantage benchmark. The plan receives a rebate from CMS, which it can use to reduce the Part B premium (Giveback benefit), offer additional benefits, or reduce cost-sharing.
Key Points
- Premium reduction: plan bid below benchmark — receives rebate from CMS
- Rebate used to: reduce Part B premium (Giveback), offer additional benefits, or reduce cost-sharing
- Giveback benefit: plan pays part of your Part B premium
- Additional benefits: dental, vision, hearing, OTC, flex card
- An independent agent can identify plans with premium reductions in your area