Many Medicare Advantage plans have a $0 monthly premium. You’ll typically still have to pay some other costs, such as copayments, deductibles, and coinsurance, as well as your Part B premium.
Medicare Advantage plans are administered by private insurance companies. These plans combine coverage from Original Medicare (parts A and B), but also often include prescription drug coverage.
Medicare Advantage plans may also cover extra services like hearing, vision, dental, and other wellness programs that Original Medicare does not.
Most plans have a maximum amount that a person has to pay out of pocket. Once that amount is met, the plan will cover 100% of the cost of eligible healthcare services for the rest of the year.
To keep costs low, the federal government contracts with private insurance companies to provide Medicare Advantage plans.
Through this contract, the government pays a flat fee to the insurance company, which then creates agreements with a network of hospitals or healthcare professionals. This helps keep your costs lower as long as you stay in the plan’s network.
Although Medicare Advantage plans can have a $0 premium, you may have to pay other costs out of pocket.
These costs can include:
Medicare premiums
Even with a Medicare Advantage plan, you are responsible for paying the premiums for other Medicare parts.
Most people do not pay a premium for Part A, but if you do, you will continue to pay this along with the Part B monthly premium.
Deductible
A deductible is the amount that you are responsible for paying before your insurance plan begins to pay its share.
Deductibles are often higher with plans that have lower premiums. This means you’ll pay less each month in premiums but more out of pocket for individual healthcare services.
After you pay your full deductible, your health plan will pay most of the cost for medical services. You may still have to pay a copay or coinsurance.
Copays
A copayment, also called a copay, is an amount that you pay for a service after you have met your deductible.
These may be higher with plans that have lower monthly premiums.
Plans with a higher monthly premium, on the other hand, may have lower copays.
Coinsurance
Coinsurance is a percentage amount that you are responsible for paying for a covered service, even after you’ve paid your deductible.
For example, if your coinsurance is 20%, you will pay this amount and Medicare will cover the remaining 80% of eligible expenses.
To sign up for a Medicare Advantage plan, you can head over to the Medicare website and use the plan finder tool.
Plan offerings vary by state, and using the tool allows you to search for available plans in your area by entering your ZIP code.
There are specific enrollment periods for different Medicare plans:
Zero-premium Medicare Advantage plans can be a great option for people who are looking to bundle or supplement their existing Medicare coverage.
They may also be a good idea for those who do not anticipate using many healthcare services or incurring high medical expenses.
Research your plan options thoroughly before choosing one. Make sure it covers everything you need at a cost that makes sense for your budget.