# 42 CFR § 408.21: Reduction in Medicare Part B premium as an additional benefit under Medicare + Choice plans

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-42-408.21

## Section

- **Citation:** 42 CFR § 408.21
- **Heading:** Reduction in Medicare Part B premium as an additional benefit under Medicare + Choice plans
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 42—Public Health > CHAPTER IV—CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES > SUBCHAPTER B—MEDICARE PROGRAM > PART 408—PREMIUMS FOR SUPPLEMENTARY MEDICAL INSURANCE > Subpart B—Amount of Monthly Premiums

## Text

(a) Basis for reduction in Part B premium. Beginning January 1, 2003 an M + C organization may elect to receive a reduction in its payments under § 422.250(a)(1) of this chapter if—
(1) 80 percent of the payment reduction is applied to reduce the standard Medicare Part B premiums of its Medicare enrollees.
(2) The Medicare Part B premium is reduced monthly and is offered to all Medicare enrollees in a specific plan benefit package.
(b) Administrative requirements for the Part B premium reduction. (1) The Medicare Part B premium reduction cannot be greater than the standard premium amount determined for the year, under section 1839(a)(3) of the Act. However, it may be less.
(2) The Medicare Part B premium reduction must be a multiple of 10 cents.
(3) The Medicare Part B premium reduction is applied regardless of who pays or collects the Part B premium on behalf of the beneficiary.
(4) The Medicare Part B premium can never be less than zero and will never result in a payment to a beneficiary for a specific month.
(c) Beneficiary eligibility. In order for a beneficiary to be eligible for the Medicare Part B premium reduction, the beneficiary must be enrolled in an M + C plan that offers the Medicare Part B premium reduction as an additional benefit.
(d) Notifications. After determining the Medicare Part B premium reduction amount for each eligible beneficiary, CMS will—
(1) Transmit this information to the Social Security Administration, Railroad Retirement Board, or the Office of Personnel Management, as appropriate, which will adjust the benefit check amounts as appropriate and notify the beneficiaries of their new benefit amount.
(2) Notify states and formal groups and direct billed beneficiaries of their reduced premium amounts in the regular monthly billing process.
[68 FR 66723, Nov. 28, 2003]

## Nearby sections

- [42 CFR § 408.1 § 408.1 Statutory basis.](https://www.frixlaw.com/law-library/statutes/ecfr-42-408.1.md)
- [42 CFR § 408.2 § 408.2 Scope and purpose.](https://www.frixlaw.com/law-library/statutes/ecfr-42-408.2.md)
- [42 CFR § 408.3 § 408.3 Definitions.](https://www.frixlaw.com/law-library/statutes/ecfr-42-408.3.md)
- [42 CFR § 408.4 § 408.4 Payment obligations.](https://www.frixlaw.com/law-library/statutes/ecfr-42-408.4.md)
- [42 CFR § 408.6 § 408.6 Methods and priorities for payment.](https://www.frixlaw.com/law-library/statutes/ecfr-42-408.6.md)
- [42 CFR § 408.8 § 408.8 Grace period and termination date.](https://www.frixlaw.com/law-library/statutes/ecfr-42-408.8.md)
- [42 CFR § 408.10 § 408.10 Claim for monthly benefits pending concurrently with request for SMI enrollment.](https://www.frixlaw.com/law-library/statutes/ecfr-42-408.10.md)
- [42 CFR § 408.20 § 408.20 Monthly premiums.](https://www.frixlaw.com/law-library/statutes/ecfr-42-408.20.md)
- [42 CFR § 408.21 § 408.21 Reduction in Medicare Part B premium as an additional benefit under Medicare + Choice plans.](https://www.frixlaw.com/law-library/statutes/ecfr-42-408.21.md)
- [42 CFR § 408.22 § 408.22 Increased premiums for late enrollment and for reenrollment.](https://www.frixlaw.com/law-library/statutes/ecfr-42-408.22.md)
- [42 CFR § 408.24 § 408.24 Individuals who enrolled or reenrolled before April 1, 1981 or after September 30, 1981.](https://www.frixlaw.com/law-library/statutes/ecfr-42-408.24.md)
- [42 CFR § 408.25 § 408.25 Individuals who enrolled or reenrolled between April 1 and September 30, 1981.](https://www.frixlaw.com/law-library/statutes/ecfr-42-408.25.md)
- [42 CFR § 408.26 § 408.26 Examples.](https://www.frixlaw.com/law-library/statutes/ecfr-42-408.26.md)
- [42 CFR § 408.27 § 408.27 Rounding the monthly premium.](https://www.frixlaw.com/law-library/statutes/ecfr-42-408.27.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-42-408.21. Check the current official text before relying on it. Not legal advice.