Nearly 21 million Medicare beneficiaries will receive a one-time $90 payment from the federal government in October 2026 to help offset the cost of their Medicare Part B premiums. But most Medicare beneficiaries won’t get the rebate.
In early October 2026, the White House announced that 20.8 million Medicare beneficiaries would receive a $90 Medicare Improvement Fund Premium Rebate.
Here’s what you need to know about this rebate:
Who is eligible for the $90 Medicare premium rebate?
To be eligible for the $90 Medicare premium rebate, you must be:
- Enrolled in Original Medicare (not Medicare Advantage), including Medicare Part B
- Living in the United States
- Not receiving premium assistance from Medicaid. (This includes people who have full Medicaid in addition to Medicare, or who qualify for a Medicare Savings Program.)
- Not paying a high-income surcharge (IRMAA) with their Medicare Part B premiums
Who is not eligible for the $90 Medicare premium rebate?
There are 70.6 million people enrolled in Medicare, but less than a third of them are eligible for the $90 rebate.
Beneficiaries who are NOT eligible for the $90 premium rebate include:
- The 36 million people who have Medicare Advantage
- People who are enrolled only in Medicare Part A – but not Part B – as is the case for many people who are still working and covered by an employer’s group plan
- People who are living outside the United States
- People who are receiving premium assistance from Medicaid (including Medicare Savings Programs)
- People who are paying an income-related monthly adjusted amount (IRMAA)
Do I have to apply for the rebate?
Most eligible beneficiaries were expected to receive the rebate through direct deposit around October 8. However, if the government doesn’t have your direct deposit information on file and you’re eligible for the rebate payment, you’ll receive a paper check later in October. You do not need to apply for the rebate; it’s sent automatically if you’re eligible.
What should I do if I did’t receive the payment?
If you believe you’re eligible for the $90 Medicare Improvement Fund Premium Rebate and you didn’t receive a direct deposit or paper check by October 15, 2026, you can contact the Social Security Administration at 1-800-772-1213.
Is the $90 Medicare premium rebate different from the Medicare Part B premium reduction?
The $90 Medicare premium rebate and the Medicare Part B premium reduction are two separate things.
The $90 Medicare Improvement Fund Premium Rebate is a one-time payment, sent to nearly 21 million eligible Medicare Part B enrollees. The Medicare Part B premium reduction, which is sometimes called a “giveback,” helps some Medicare Advantage enrollees pay for some or all of their Part B premiums.
For 2026, about a quarter of Medicare Advantage plans offered Medicare Part B giveback.
Is the Medicare rebate taxable?
The federal government has not issued specific guidance on the taxability of the $90 Medicare premium rebate. But since it is being treated as a Part B premium rebate (specifically a “$90 payment to offset October premium”), people who deduct their Medicare premiums on their taxes should consult with their tax advisor about accurately accounting for it.
Medicare premiums are tax deductible for people who are self-employed, and also for people who itemize their deductions and are thus able to deduct total medical expenses – including premiums – that exceed 7.5% of their adjusted gross income.
How is the $90 Medicare premium rebate being funded?
The Medicare Improvement Fund is being used to pay the $90 Medicare premium rebate payments.
Congress established this fund in 2008 to “make improvements under the original fee-for-service program,” and has changed the amount of money available to the fund numerous times over the years. Most recently, authorization for the fund stood at just over $2 billion.
The $90 Medicare premium rebate amounts to about $1.9 billion in total spending, so it uses nearly all of the available funding. Although the Medicare Improvement Fund has existed since 2008, this is the first time that CMS has drawn money from it.
