Premiums are the amount you pay each month out-of-pocket for your Medicare Advantage plan. The estimated average monthly MA plan premium for 2023 is $18, but this cost may vary significantly. Some plan premiums could be $0, while others could have premiums over $200.
The Best Medicare Advantage Providers of 2023
According to MoneyGeek's scoring system, the top-rated Medicare Advantage plans are Blue Cross Blue Shield for preferred provider organizations and UnitedHealthcare for health maintenance organizations.
For many seniors, Medicare Advantage plans can work well. A 2021 study in the Journal of the American Medical Association found that Advantage enrollees often receive more preventive care than those in traditional Medicare. But if you have chronic conditions or significant health needs, you may want to think twice.
Plan G is the best Medigap policy for new enrollees, but it's also one of the more expensive plans, averaging $145 per month for 2023.
Medicare Advantage beneficiaries are extremely satisfied with their health care coverage. 98% of beneficiaries say they are satisfied with their Medicare Advantage plan, and 97% express satisfaction with their network of physicians, hospitals and specialists.
Top 3 Reasons People leave Medicare Advantage plans:
Unhappy with the additional benefits. A limited network of doctors. Unreasonable cost-sharing.
The estimated average monthly MA plan premium for 2023 is $18, but this cost may vary significantly. Some plan premiums could be $0, while others could have premiums over $200. To join a Medicare Advantage plan, you must also be enrolled in Medicare Parts A & B.
Medicare Advantage plans must limit how much their members pay out-of-pocket for covered Medicare expenses. Medicare set the maximum but some plans voluntarily establish lower limits. After reaching the limit, Medicare Advantage plans pay 100% of eligible expenses.
It is clear from Wakely's study that rather than being more expensive than original Medicare, MA is actually significantly less expensive, even accounting for all the extra benefits and services the program provides.
Yes, you can elect to switch to traditional Medicare from your Medicare Advantage plan during the Medicare Open Enrollment period, which runs from October 15 to December 7 each year. Your coverage under traditional Medicare will begin January 1 of the following year.
The main reason why Medicare Advantage carriers can offer low to zero-dollar monthly premium plans is that Medicare pays the private companies providing the plans to take on your health risk. But not all Medicare Advantage plans have a low premium cost.
Plans may have lower out-of-pocket costs than Original Medicare. Plans may offer some extra benefits that Original Medicare doesn't cover—like vision, hearing, and dental services. service area (for non-emergency care). Some plans offer non-emergency coverage out of network, but typically at a higher cost.
Advantage plans are heavily advertised because of how they are funded. These plans' premiums are low or nonexistent because Medicare pays the carrier whenever someone enrolls. It benefits insurance companies to encourage enrollment in Advantage plans because of the money they receive from Medicare.
Under attained-age pricing, Medicare costs and the price you pay for your Medicare Supplement plan is based on your current age, or the age that you “attained” the policy. Unlike plans based on community-rated pricing or issue-age pricing, your premium goes up as you get older.
With Original Medicare, you pay 20 percent of the cost, or 20 percent coinsurance, for common health services like office visits or outpatient surgery. Most Medicare Advantage plans use copays instead of coinsurance for these services. That means you pay a fixed cost.
Forty-five percent of Medicare beneficiaries are enrolled in Medicare Advantage plans in 2022, a share that is projected to rise to more than 50 percent by 2025.
CMS announced that the average monthly plan premium among all Medicare Advantage enrollees in 2023, including those who pay no premium for their Medicare Advantage plan, is expected to be $18 a month.
If You Have a Higher Income
If you have higher income, you'll pay an additional premium amount for Medicare Part B and Medicare prescription drug coverage. We call the additional amount the “income-related monthly adjustment amount.”
You may be dropped from a Medicare Advantage plan if it becomes unavailable or if it no longer services your area. You may also be dropped from a Medicare Advantage plan if you don't make your payments within an agreed-upon grace period.
Average Monthly Medicare Advantage Prescription Drug Plan Premiums, Weighted by Plan Enrollment, 2010-2022. In 2022, the average enrollment weighted MA-PD premium, including among those who do not pay a premium, is $18 per month.
The type of Medicare will determine your monthly costs. In 2023, a Medicare Advantage plan can cost an average of $28 per month. Medicare Part B usually costs $164.90 per month, and a Medicare Part D plan for prescription drugs costs an average of $49 per month.