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.