Are Medicare Advantage plans really “free,” or is that just clever marketing?

Question

Ray McCauley · Accepted Answer

several carriers offer zero premium plans for medicare advantage plans. they can do this because they get paid by medicare to coordinate your medical care

Kelsey Hentzen · Answer

Most Medicare Advantage plans offer $0 monthly premiums and $0 primary care visits. This also depends on your zip code or service area. You'll want to consider copays and benefits of each plan to ensure it is the right one that fits your individual needs. Some advantage plans may have health deductibles or prescription deductibles. You'll want to ensure whoever you are working with goes over the summary of benefits of the plan.

Answered by Kelsey Hentzen on March 28, 2025

Broker Licensed in KS & MO

Answered by Kelsey Hentzen Medicare Insurance Agent

David Moscowitz · Answer

Some Plans have no monthly premium costs, to the members and some do depending on the plan you are applying for. For instance a PPO plan or an HMO plan. you need to talk to an agent.

Daniel Weeks · Answer

There are $0/premium plans out there, but you must be enrolled in Part B which has a premium of $185/month unless you get assistance through the state or county per your income level. Obviously with no premium, one can expect more out of pocket expenses when seeing doctors or hospitals, generally.

Answered by Daniel Weeks on March 31, 2025

Broker Licensed in MN, ND, SD & WI

Answered by Daniel Weeks Medicare Insurance Agent

Andrew Bennett · Answer

The old saying is that there is no free lunch and it applies to Advantage Plans as well.  In this case the cost isn't born by the person enrolled in the plan the cost is carried by tax payers.  Medicare, whether traditional or Advantage, is subsidized by the Federal government.   Advantage Plans cost the government approximately 22% more than traditional Medicare does.  

There are several reasons for this.  Commissions for agents are much higher with Advantage plans than for Medicare Supplements.  Marketing expenses are greater with Advantage Plans. On top of all that the Advantage Plans have lobbied congress and rule makers enough that they get extra subsidies the sicker an enrollee is.  The kicker is that they get those extra funds regardless of whether the enrollee gets more healthcare or not.

In a word, "NO" it isn't free.  It's just clever marketing.

Jim Schueth · Answer

The correct statement should be..... Most Medicare Advantage are $0 premium plans that have Co-Pays, Co-Insurances and most importantly, a Maximum Out Of Pocket In-Network.

These plans are frequently called Pay As You Go plans.  You may not spend anything or you may spend the Max Out Of Pocket.  No one knows what health issues will arise in the future!

Candace McWilliams · Answer

Some Medicare Advantage Plans have a $0 monthly premium, but you are generally responsible for co pays, deductible and out of pocket maximums.

Terrie Boteler · Answer

Some Medicare Advantage plans have a zero premium, but this varies by county. I'm happy to answer questions about plans in your area.

Leslie Helene Sussman · Answer

Medicare Advantage plans are NOT free. Most MA plans have a zero monthly premium and some could also have give-back options towards Part B Medicare payment. When reviewing Medicare Advantage plans ALWAYS review the Summary of Benefits to truly understand how the plan is going to work for your Medical and RX needs. Medicare Advantage plans have Co-pays.

Answered by Leslie Helene Sussman on March 31, 2025

Broker Licensed in NJ, DE, FL & PA

Answered by Leslie Helene Sussman Medicare Insurance Agent

Tasha Riggs · Answer

Yes a majority of Medicare Advantages are free. 
Medicare advantages you pay a copay as you use it.
Many of them come with dental, vision, hearing, over the counter items, and some healthy foods!!

Michael Pyers · Answer

They are not free. You have to pay copays for just about everything and sometimes have a very large out of pocket! So, if you never get sick, they might be a money saver - God forbid if you develop a major illness!

Answered by Michael Pyers on March 26, 2025

Broker Licensed in OH & MI

Answered by Michael Pyers Medicare Insurance Agent

Dana Dane · Answer

Some Medicare Advantage plans have a $0 monthly premium.  Medicare Advantage plans are subsidized by the government.  Legitimate advertising must be approved by Medicare.

Aaron Solomon · Answer

I tell clients that there is nothing "free" in life. When you are thinking about either a Supplement or a MAPD plan, chose the plan you are most comfortable for you. There is no wrong answer. The plan should make you feel confortable about your health cover.

Answered by Aaron Solomon on March 27, 2025

Broker Licensed in OH, LA & TX

Answered by Aaron Solomon Medicare Insurance Agent

Brenda Trejos · Answer

Approximately 70% of Medicare Advantage Plans (MAPD) do not have a monthly premium, but all MAPD's do have costs associated with them when they are used for most medical services. These are known mostly as copays and can be quite reasonable, especially when you use In-Network services. Many MAPD's also come with additional extra benefits that are attractive to many consumers. Benefits such as Dental, Hearing, Vision, Gym coverage, etc. Its important to understand the pros & cons for MAPD's, as well as Medicare Supplements. There is not a "one size fits all" Plan out there and talking to an experienced Agent/Broker is a wise option. Plan ahead before starting Medicare and learn as much as you can.

Answered by Brenda Trejos on March 26, 2025

Broker Licensed in CO, AR, AZ & 28 other states

Answered by Brenda Trejos Medicare Insurance Agent

Harold Randolph · Answer

They have zero dollar premiums on most. Being free is a matter of perspective. You will still need to understand what your costs are, ie copays, deductibles and Coinsurance. A good broker can help you field these questions at no cost as well.

Answered by Harold Randolph on March 28, 2025

Broker Licensed in MI, IN, KY & OH

Answered by Harold Randolph Medicare Insurance Agent

Cody Brown · Answer

Medicare Advantage plans are not free. Some plans have a premium and some have no premium. Either way they are funded by tax dollars, so you have been paying into it your whole working life.

Pete Alberti · Answer

The concept of "free" Medicare Advantage plans can be misleading. While some Medicare Advantage plans advertise $0 monthly premiums, it's crucial to understand that this doesn't mean you won't have any healthcare costs. Here's a breakdown:

 * $0 Premium Doesn't Mean $0 Cost:

 A $0 premium means you don't pay a monthly fee to the private insurance company offering the Medicare Advantage plan. However, you'll still likely have other out-of-pocket costs, such as:
     
* Co-payments: Fixed amounts you pay for specific services (e.g., doctor's visits, prescriptions).
* Coinsurance: A percentage of the cost you pay for services.
* Deductibles: The amount you pay before your plan starts covering costs.
 
Contact at 859-309-5033 if you would help with your Medicare Planning

Michelle Schaefer · Answer

Many Medicare Advantage plans have $0 premium. It is helpful to have a local agent who can explain the differences in the various policies and their premiums.

Kirk Harper · Answer

"Free" is not a word that should be used when referring to Medicare products.  Many plans have no premium cost but have out-of-pocket expenses that a Medicare enrollee may incur.

Barbara Barnes · Answer

You've heard that "there's no such thing as a free lunch." Well, the same is true of Medicare Advantage plans.

While it's true that there are Medicare Advantage plans that cost $0 in premium, they are not 'free' for a variety of reasons:

1.  In order to qualify for a Medicare Advantage plan, you must have both Medicare Part A and Medicare Part B.  There is a premium for Part B that must be paid every month.

2. You accept the terms and conditions of the Medicare Advantage plan that you choose, and that includes copayments and an out-of-pocket maximum for the services you receive.  The fees you pay could add-up to thousands of dollars each year.  While Medicare Advantage plans must be at least as good as Original Medicare, there will certainly be a cost to receiving medical care under Medicare Advantage.

3.  Your Medicare Advantage plan is being paid by Medicare.  Because they have taken-over responsibility for your medical needs, Medicare pays them a portion of what they expected to pay for your claims.  The Medicare Advantage plan then decides how to spend that money in benefits.  As the Medicare budget changes every year, so does the Medicare Advantage plan.  It is important to review the changes in your Medicare Advantage plan every year.

4.  You may end-up benefiting from Medicare Advantage by paying a little more for your medical claims, while receiving "extra" benefits like dental, vision, hearing, fitness, prescription drug and over-the-counter drug benefits at little to no cost.  But in a year where you have a lot of expensive medical treatment, you could pay a lot more out of your pocket.

Tony Hardwick · Answer

Medicare Advantage plans come with a $0 monthly premium. It does require co-pays for some services. Depending on the level of assistance, some clients may qualify for a plan with $0 monthly premium and $0 co-pays, but that is determined by the level of assistance the client is qualified for.

Answered by Tony Hardwick on March 31, 2025

Agent Licensed in GA, AZ, CA & 15 other states

Answered by Tony Hardwick Medicare Insurance Agent

Carmen Zorrilla · Answer

Medicare Advantage (MA) plans are not entirely "free." While some MA plans have $0 premiums, they often come with other costs and limitations.


What to Consider


Premiums: You'll still pay your Medicare Part B premium.
Out-of-Pocket Costs: Copays, coinsurance, and deductibles apply.
Network Restrictions: Seeing out-of-network providers may result in higher costs.
Maximum Out-of-Pocket (MOOP): You'll pay up to a certain limit annually.



Before Enrolling


Research: Compare plans and review the fine print.
Ask Questions: Clarify doubts with the plan provider or a licensed insurance agent.



Confused About Medicare Advantage Plans?


Don't worry, I'm here to help. With so many plans available, it can be overwhelming to choose the right one.


Call me directly at 407-244-6951 for a personalized consultation. I'll help you navigate the complex world of Medicare Advantage plans and find the best fit for your healthcare needs.

Are Medicare Advantage plans really “free,” or is that just clever marketing?

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Are Medicare Advantage plans really “free,” or is that just clever marketing?

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A non-government resource website