Medicare Advantage Members Excluded From $90 Part B Rebate
CMS is sending a one-time $90 rebate to 20.8 million people enrolled in Original Medicare Part B. Medicare Advantage members do not qualify even if they pay the same standard Part B premium. Eligibility also requires U.S. residence, no Medicaid premium assistance, and income below $109,000 for individuals or $218,000 for couples.
The payment stems from the Medicare Improvement Fund, established in 2008 for Original Medicare’s fee-for-service Parts A and B. Because Medicare Advantage operates separately, its enrollees are not covered by this rebate, even when they pay the same 2026 standard Part B premium of $202.90.
Eligibility also excludes people who get Medicaid help with Part B premiums or owe IRMAA. For 2026, IRMAA begins above $109,000 for single filers and $218,000 for joint filers, using 2024 tax returns. Direct deposits arrived around October 8; paper checks follow later.
The split could leave Medicare Advantage members feeling unequal because they pay the same premium but receive no rebate. It may prompt some to compare coverage options during open enrollment, though switching solely for $90 could expose them to hospital deductibles and coinsurance without an annual cap. The one-time nature may limit broader financial effect, while eligible Original Medicare beneficiaries could see modest short-term relief.