More than 20 million Americans enrolled in Medicare are set to receive a one time $90 payment to help offset their Part B premiums, but millions of other beneficiaries will not qualify.
The payment, announced by the Trump administration in October, is intended to help eligible recipients cover part of their Medicare costs. According to the Centers for Medicare & Medicaid Services, the rebate is available to qualifying people enrolled in Original Medicare Part B who live in the United States and do not receive Medicaid assistance for their premiums or pay an income related monthly adjustment amount.
People enrolled in Medicare Advantage are also excluded from the payment.
Eligible beneficiaries are expected to receive the money through direct deposit or a mailed check. Most payments were scheduled for early October, with some checks arriving later in the month. Recipients can call Medicare at 1-800-633-4227 to confirm eligibility or contact the Social Security Administration at 1-800-772-1213 to check payment status.
The $90 rebate does not reduce a beneficiary’s monthly premium. Instead, it provides a one-time payment intended to offset part of the cost.
Who qualifies for the $90 Medicare payment?
The rebate is available to eligible people enrolled in Original Medicare Part B who meet the program’s requirements.
According to CMS, beneficiaries must live in the United States and must not receive Medicaid assistance that pays their Part B premiums. People who pay an Income Related Monthly Adjustment Amount, commonly known as IRMAA, are also excluded.
Those enrolled in Medicare Advantage plans do not qualify, even if their coverage includes Part B benefits.
The payment is being funded through the Medicare Improvement Fund, which Congress established to support improvements to the Original Medicare program. The administration announced that more than 20 million beneficiaries would receive the one time rebate.
Because eligibility depends on enrollment and premium arrangements, beneficiaries should confirm their status rather than assume they will receive the money automatically.
Medicare open enrollment brings new decisions
The payment comes as Medicare’s annual open enrollment period runs from Oct. 15 through Dec. 7, 2026. During this period, beneficiaries can review their coverage and make changes for 2027.
People can switch Medicare Advantage plans, change standalone Part D prescription drug coverage or move from Medicare Advantage to Original Medicare.
Beneficiaries should review their Annual Notice of Change, which plans were required to send by Sept. 30. The notice explains changes to premiums, deductibles, provider networks, prescription coverage and additional benefits.
Some Medicare Advantage plans are reducing their service areas or leaving certain markets, while the number of available plans varies by location. According to KFF, beneficiaries will have an average of 35 Medicare Advantage plan options nationally in 2027, down from 39 in 2026.
Standalone Part D prescription drug plans will also offer fewer options on average, with nine plans available nationally compared with 11 this year.
Anyone whose plan is ending should carefully review their next steps. If an insurer exits the Medicare Advantage program and a beneficiary does not select replacement coverage, the person may return to Original Medicare without prescription drug coverage. Choosing a suitable Part D plan during open enrollment can help prevent a late-enrollment penalty.
Medicare costs are projected to rise in 2027
The rebate arrives as several Medicare costs are expected to increase next year.
The Medicare trustees project that the standard monthly Part B premium will rise to $209.50 in 2027, up from $202.90 in 2026. The projected annual Part B deductible is also expected to increase from $283 to $292.
These figures are projections, and the official Part B premium and deductible amounts are subject to confirmation by CMS.
Prescription drug expenses are another consideration. The annual out of pocket limit for covered Part D medications is scheduled to rise from $2,100 in 2026 to $2,400 in 2027. The maximum Part D deductible is also projected to increase from $615 to $700, although individual plans can charge less.
While CMS projects the average standalone Part D premium will rise modestly, individual plans may have significantly different prices. Beneficiaries should compare coverage and medication costs rather than rely solely on a plan’s monthly premium.
How beneficiaries can review their options
Medicare recipients can compare available coverage at Medicare.gov, including Medicare Advantage, Part D and Medigap options. The website allows users to review plan benefits and enter prescription medications and preferred pharmacies to estimate costs.
Beneficiaries should check whether their medications remain covered, whether their doctors are still in network and whether premiums or other expenses will change next year.
Free, personalized assistance is also available through State Health Insurance Assistance Programs, which help people understand Medicare options.
The $90 rebate may offer some short term financial relief, but it covers only part of one month’s standard Part B premium. Reviewing coverage before the Dec. 7 deadline can help beneficiaries prepare for the costs and plan changes expected in 2027.
Sources: Centers for Medicare & Medicaid Services, Medicare.gov and KFF.
