Does Medicare Part B premium paid through Humana Give Back plan count as Social Security income?

no it doesnt count as income. its just that youre getting your full SS amount instead of having the part B deducted. same happened with me last year when i switched to AARP plan that paid my part B

This is a great question that many beneficiaries misunderstand. The Part B premium payment through your Medicare Advantage plan (like your Humana Give Back plan) is considered a premium reduction or rebate - not additional income. It will not increase your taxable Social Security income. What's actually happening is the Humana plan is essentially giving you back what would have been deducted. Your 1099-SSA at tax time will show your full benefit amount, just as it would if you were paying the premium yourself. The IRS doesn't consider this arrangement as adding income - you're simply receiving a plan benefit in the form of premium assistance. For tax purposes, your income levels remain unchanged by this arrangement.

I went through this EXACT situation last year!!! Called SSA like 8 times and got disconnected every single time trying to get this answered. SO FRUSTRATING!!!! Finally got through after waiting 2 HOURS on hold. The agent confirmed that the premium rebate is NOT considered income. It's just the insurance company paying that bill for you as part of their plan benefits. Your taxable income stays exactly the same as before.

Healthcare professional here. Let me clarify how Medicare Advantage plans with Part B give-back benefits work for tax purposes: 1. The amount is officially called a "Part B Premium Reduction" or "Part B Premium Rebate" 2. This reduction comes from the Medicare Advantage plan's portion of funds that Medicare pays them to administer your benefits 3. From a tax perspective, this is NOT considered additional income 4. Your Social Security taxable income is based on your gross benefit amount BEFORE Medicare premium deductions 5. Your SSA-1099 form (Box 5) shows the net amount received plus Medicare premiums deducted - this doesn't change with a give-back plan Your tax advisor is incorrect if they suggested it would increase your taxable income. The give-back is effectively reducing what you pay for healthcare, not increasing your income.

My brother had Humana giveback too and it was fine no extra taxes BUT watch out they might not cover some things regular Medicare does!! He had to switch back when he needed physical therapy because Humana only covered like 6 visits then wanted $50 copay for each visit after that. Just saying be careful with those plans!!

To address the tangential discussion about Medicare Advantage coverage limitations: While it's true that MA plans have networks and coverage rules that differ from Original Medicare, this varies significantly by specific plan. The Part B premium rebate/reduction is a separate feature that doesn't directly impact coverage decisions. To clarify further on the original question: The premium reduction mechanism involves the MA plan sending money to SSA, who then does not deduct (or reduces the deduction of) the Part B premium from your Social Security check. In terms of tax forms, your SSA-1099 would show your full benefit amount and any amounts actually deducted for Medicare. The give-back portion never appears as taxable income anywhere.

I'm just wondering WHY your tax advisor would think this?? Did they misunderstand something about how these plans work? Because that's concerning advice from someone who should know better! Maybe they thought the rebate was being paid directly to you as cash??? That would be different (and would count as income). But when it's just reducing what gets taken out of your check, that's definitely NOT income!

I'm glad you got this sorted out! It's actually pretty common for tax professionals to be unfamiliar with the specifics of Medicare Advantage give-back plans since they're a relatively newer feature. The key thing to remember is that you're not receiving any additional money - you're just not having the premium deducted from your Social Security check because the insurance company is handling that payment directly to Medicare. Your actual benefit amount and taxable income remain exactly the same. For future reference, if you ever need to explain this to another tax preparer, you can tell them it's similar to having an employer pay for health insurance - the premium coverage isn't considered taxable income to you.

Just wanted to add my experience as someone who switched to a give-back plan last year - it really is just premium assistance, not additional income. I was initially worried about the same thing because I'm also close to the 85% taxation threshold. What helped me understand it better was thinking of it like this: instead of Medicare taking $185 from your SS check and then you paying Humana, Humana just pays Medicare directly so there's no deduction needed. Your actual SS benefit amount never changes, and neither does your taxable income. The 1099-SSA form I received showed the same gross benefit as always. It's basically just a different payment flow, not extra money coming to you.

As someone who just turned 65 and is navigating Medicare for the first time, this thread has been incredibly helpful! I was actually looking at the same Humana Give Back plan and had the exact same concern about taxes. It's reassuring to hear from so many people who've been through this that the premium assistance doesn't count as taxable income. The employer-paid health insurance analogy really clicked for me - it's just a different way of handling the payment, not extra money in your pocket. I'm still trying to decide between this and traditional Medicare with a supplement plan, but at least now I know the tax implications aren't something I need to worry about. Thanks to everyone for sharing their experiences!

I'm dealing with something similar but with an AARP Medicare Advantage plan that covers my Part B premium. Like others have said, it's definitely not taxable income - it's just premium assistance. What I found really helpful was calling Medicare directly (not SSA) at 1-800-MEDICARE to understand how these give-back benefits work. They explained that the insurance company essentially pays your premium for you, so you're not receiving any additional money that would be taxable. Your Social Security benefit amount stays exactly the same, you just don't have the Medicare premium deducted anymore. The key is understanding that this is a plan benefit (like having lower copays), not additional income. Hope this helps put your mind at ease!

I just went through this exact same situation with my Humana Give Back plan! I was so worried about the tax implications because I'm also right at that threshold where more of my Social Security becomes taxable. After doing a lot of research and talking to multiple people, I can confirm what others have said - the Part B premium assistance is NOT taxable income. What really helped me understand it was realizing that you're not actually receiving any extra money. Your Social Security benefit amount is exactly the same as it would be otherwise. The only difference is that instead of having $185 deducted from your monthly check for Medicare Part B, Humana pays that premium directly to Medicare on your behalf. It's essentially the same as if your employer paid for your health insurance - the premium coverage isn't considered income to you. When I got my SSA-1099 form this year, it showed the same gross benefit amount as always. The give-back benefit never appears anywhere as additional income because it's not income - it's just premium assistance. I hope this helps ease your concerns!

I'm a Medicare specialist and wanted to add some additional context that might be helpful. The confusion your tax advisor had is actually pretty common because these "give-back" or premium reduction benefits are still relatively new and not all tax professionals are familiar with them yet. From a technical standpoint, what happens is that CMS (Centers for Medicare & Medicaid Services) allows Medicare Advantage plans to use a portion of their monthly capitation payments to cover members' Part B premiums. This is reported to SSA as a premium reduction, not as income to you. The important thing to understand is that your Modified Adjusted Gross Income (MAGI) - which determines how much of your Social Security is taxable - remains completely unchanged by this arrangement. You might want to share this information with your tax advisor so they can better understand how these plans work for future clients. One last tip: keep your Medicare plan documentation that shows the Part B premium coverage - it can be helpful if you ever need to explain this arrangement to a new tax preparer.

I'm a new Medicare beneficiary and this thread has been so educational! I was actually considering the same type of give-back plan but was hesitant because I wasn't sure about the tax implications. Reading everyone's experiences and especially the professional explanations really helps clarify that this is just premium assistance, not additional taxable income. What I found particularly helpful was the analogy to employer-paid health insurance - that really made it click for me. It's just a different way of handling who pays the premium, not extra money coming into your pocket. I'm still weighing my Medicare options, but at least now I know the tax considerations aren't something I need to worry about with these plans. Thanks to everyone who shared their real-world experiences - it's so much more valuable than trying to decipher official government websites or getting conflicting information from different sources!

I'm new to this community and just want to say thank you all for this incredibly detailed discussion! I'm 64 and will be eligible for Medicare next year, so I'm trying to learn as much as I can about the different options. The give-back plans sound really attractive, but I was definitely concerned about potential tax implications since I'm still working part-time and need to be careful about my income levels. Reading through all these real experiences and especially the professional explanations has been so helpful. The key point that really made it clear for me is that you're not actually receiving additional money - the insurance company is just paying your Medicare premium for you, similar to how an employer might pay for health insurance. Your actual Social Security benefit and taxable income stay exactly the same. I'll definitely be looking into these plans more seriously now, though I'll also research the network restrictions that several people mentioned. It's great to have a community where people share their real-world experiences with these complex Medicare decisions!

As someone who works in Medicare enrollment, I can confirm what everyone has said here - the Part B premium assistance from give-back plans like your Humana plan is absolutely NOT taxable income. This is one of the most common misconceptions I encounter with new Medicare beneficiaries. The way it works is simple: instead of SSA deducting $185 from your monthly check and you paying nothing extra, Humana pays that $185 directly to Medicare on your behalf. Your gross Social Security benefit remains identical, your net amount received is the same, and most importantly - your taxable income doesn't change at all. Your SSA-1099 will show the exact same figures as if you were paying the premium yourself. The IRS sees no difference in your tax situation. It's frustrating that SSA phone agents don't always understand these newer Medicare Advantage features, but the tax treatment is very clear - premium assistance is not income. Your tax advisor was likely thinking of a different scenario where you might receive cash rebates, which would be taxable. But premium reductions like yours are treated the same as any other insurance benefit - not taxable income.

I'm so glad you found this community thread! As someone who went through the exact same confusion when I first got my Medicare Advantage give-back plan, I can definitely relate to your frustration with trying to get clear answers from SSA. What really helped me understand it was thinking about it this way: your Social Security benefit amount is set by law based on your work history - that number doesn't change regardless of what insurance plan you choose. The Part B premium is normally deducted from that benefit, but with a give-back plan, the insurance company just pays Medicare directly so there's no deduction needed. You're not getting any extra money, you're just avoiding a deduction. I was also worried about tax implications since I'm close to the income thresholds, but after going through tax season with my give-back plan, I can confirm that nothing changed on my tax forms. The SSA-1099 showed the same gross benefit as always, and my taxable income calculations were identical to previous years. It sounds like your tax advisor just misunderstood how these plans work - probably thinking you were getting cash payments rather than premium assistance. Definitely worth clarifying with them using the great explanations others have provided here!

I'm a Medicare beneficiary who switched to a give-back plan two years ago and can confirm what everyone else has said - it's definitely NOT taxable income! I was initially worried about the same thing because I'm also right at the income threshold where tax implications matter. What helped me understand it was getting a clear explanation from my Medicare plan: they're essentially acting like an employer who pays for your health insurance. Just like employer-paid premiums aren't considered taxable income to you, the Part B premium assistance from your Humana Give Back plan isn't taxable either. I've gone through two tax seasons now with my give-back plan, and my SSA-1099 forms showed exactly the same gross benefit amounts as before - the premium assistance never appears anywhere as additional income because it's not income, it's just a plan benefit. Your Modified Adjusted Gross Income (MAGI) stays exactly the same, so you don't need to worry about it affecting your Social Security taxation thresholds. It's really frustrating that SSA phone agents aren't always knowledgeable about these newer Medicare Advantage features, but the tax treatment is very clear. You might want to share some of the great explanations from this thread with your tax advisor to help them better understand how these plans work!