Do Medicare Advantage plans save money?

Question

Pete Alberti · Accepted Answer

The question of whether Medicare Advantage plans save money is complex, with varying perspectives. Here's a breakdown of key considerations:
Potential Cost Savings for Individuals:
 * Lower or Zero Premiums:
   * Many Medicare Advantage plans offer low or even $0 monthly premiums.
 * Out-of-Pocket Maximums:
   * These plans typically have a limit on your annual out-of-pocket expenses, providing a degree of financial protection. Traditional Medicare lacks this cap.
 * Additional Benefits:
   * Many Medicare Advantage plans include benefits not covered by Original Medicare, such as dental, vision, and hearing care, which can lead to cost savings if you utilize these services.
 * Consolidated Coverage:
   * Medicare Advantage plans often combine Medicare Part A, Part B, and Part D (prescription drug coverage) into a single plan, streamlining costs.
Concerns About Overall Costs:
 * Higher Costs to the Medicare System:
   * Reports, such as those from the Medicare Payment Advisory Commission (MedPAC), indicate that Medicare Advantage plans can cost the Medicare system more than Original Medicare. This is due to factors like how the plans are paid, and coding intensity.
 * Potential for Hidden Costs:
   * While premiums may be low, Medicare Advantage plans can involve copayments, coinsurance, and other out-of-pocket costs that can accumulate.
 * Prior Authorizations and Network Restrictions:
   * Medicare Advantage plans often require prior authorizations for services and have network restrictions, which can limit access to certain providers and potentially lead to unexpected costs.
In summary:
 * For some individuals, Medicare Advantage plans can offer potential cost savings through lower premiums and added benefits.
 * However, from the perspective of the overall Medicare program, there are concerns that these plans may increase costs.
 * It is very important for an individual to carefully review the details of any medicare advantage plan they are considering.

Gary Church · Answer

You can save money. Being on a Medicare advantage plan a question is what the cost when you actually have to use your Medicare advantage plan. It is important that you work with a Medicare agent to review your options and determine which plan is the right plan.

Answered by Gary Church on May 19, 2025

Broker Licensed in Ca, AZ, NV & TX

Answered by Gary Church Medicare Insurance Agent

Mike Alexander · Answer

Yes in most cases they save in premium cost, but all advantage plans have out of pocket costs you must pay that varies with Hmo and Ppo plans

Steve and Sue Brauer · Answer

Yes, Medicare Advantage saves you money, but you will still pay copays when you use services. The copays and out of pocket costs vary greatly depending on the plan. With a MediGap plan, you pay quite a bit up front for services you MAY use. The Medicare Advantage model is more of a "pay as you go"

Answered by Steve and Sue Brauer on April 16, 2025

Broker Licensed in AZ & CA

Answered by Steve and Sue Brauer Medicare Insurance Agent

Norman Smith · Answer

It depends! Plans with Medicare Advantage certainly look like they save money don’t they? With the giving of gifts such as some dental benefits, and eyeglasses, maybe a good card even! But when have you known anything to be for free? There has to be a balance to offset these “free gifts”! Essentially it comes in the quality of care, and the limitations within the plan. You are limited to the medical professionals in their plan, and still will have Co-pays, deductibles, and most will still need to pay the $185 Part B premium and $257 deductible anyway. So the decision is on how much value you put into having control of your health moving forward, and having access to the Best Medical Professionals anywhere in the country, regardless of where you travel! MA can’t say that! 
Here’s the formula:
PRICE is what you pay;
VALUE is what you get for the price;
COST is what it was when you got the less value for the less price.
Think before you buy because it has a low premium. The COST could be so much more!

Tony Capraro III · Answer

Today's question of the day: do Medicare Advantage plans save money? Oh, that's a loaded question. We answer it every day. Are you talking about saving money on the monthly premiums you pay or for the coverage you get with a Medicare Advantage plan? Here at my State Farm agency on Kelly Street in Manchester, we help people with both Medicare Advantage and Medicare Supplement. You want to know the good and bad about both. Do Medicare Advantage plans save you money? Well, with a Medicare Advantage plan, every year out of pocket—not what you pay every month—but out of pocket for facilities and doctors can average anywhere from $4,500 to $10,000 a year in copays. That's out of pocket, out of your pocket. So, what you want to be able to do is work with someone like myself who offers both. We offer Medicare Supplement and Medicare Advantage. So, work with me. We can decide based on your goals and objectives what works better for you. I would love to help you, and I help people every day.

Edward Smith, ChFC, CRPS, AIF · Answer

They absolutely can. However, they do have co-pays and co-insurance that you as a Medicare beneficiary have to share in. They can have no monthly premium, no deductible, no co-pay for seeing your primary care physician, but they do have a per day cost for each day in the hospital (usually up to 5 or 7 days) as well as other co-pays for see specialist, getting lab work, etc. 
There is a yearly predictable maximum out of pocket for most Medicare Advantage plans. It is important to review your prescriptions, potential doctor visits in a year and compare the potential total out of pocket medical cost between going with a Medicare Advantage vs. a Medicare Supplement.

Lynn C Shurtleff · Answer

That is a very complicated question and cannot be answered in generalities. So much depends on what plans are available in your area, what your needs are, who your doctors are and possibly what you medications are.

Answered by Lynn C Shurtleff on August 27, 2025

Broker Licensed in TN, AR, CO & 6 other states

Answered by Lynn C Shurtleff Medicare Insurance Agent

Ray McCauley · Answer

they are much lower out of pocket costs than having basic medicare. They also include prescription drug coverage which saves on rx

Steven Lovell · Answer

When it comes to premiums, you certainly can save money.  However, you are now responsible for all out of pocket costs.  Those range from $4000 to $10,000 per year.

James Carlson · Answer

Only if you are healthy all of your life.  If medical issues occur, expenses will max out year and year again at very high cost compared to a Medicare Supplement plan.

Joseph Bachmeier · Answer

If you have a Medicare Advantage plan and never use it too much it could save you a lot of money. Most Advantage plans I sell are $0 premium a month. However, if you have a lot of chronic conditions and see medical providers often it could cost you a lot of out of pocket expenses. The good thing though there are out-of-pocket maximums on Advantage plans

Answered by Joseph Bachmeier on March 28, 2025

Agent Licensed in PA, AZ, DE & 5 other states

Answered by Joseph Bachmeier Medicare Insurance Agent

Jason Denniston · Answer

For a lot of people, Medicare Advantage plans are more cost effective overall. A recent analysis found that folks on these plans spent about $3,486 less on premiums and out-of-pocket costs compared to Original Medicare. That said, it really depends on your specific doctors, prescriptions, and health needs, which is where having a broker walk through the details can make a big difference.

Answered by Jason Denniston on April 27, 2026

Broker Licensed in IN, CO, FL & 10 other states

Answered by Jason Denniston Medicare Insurance Agent

Charles Fletcher · Answer

Medicare Advantage plans may not save you money if you have what I call a "bad health year". The maximum out of pocket risk is part of what gives you the lower premium comparatively. Also factor in the risk for the 20% gap for Part B drugs (drugs administered at the Dr's office) and Durable Medical Equipment. If you are reasonably health, MA plans may save you money in the long term. Imagine a scenario where one insured person choose the Supplement and Drug Plan option and pays $300 a month, every month, for 10 years. That would be $36000 spent overall and very little extra risk. Those same 10 years on a Medicare Advantage plan may cost $0 on the premium and some copays. But you'd have to have around 5 "bad health" years in order to spend $36000 when the Max out of pocket for your plan is $6000 a year. So, if your health is reasonably good, MA plans may save you some serious money in the big picture.; When you factor in MA plans supplemental benefits like dental, vision, hearing, gym membership and OTC spending they are a very good consideration for your health insurance.

Answered by Charles Fletcher on April 4, 2025

Agent Licensed in WA, AZ, ID, NV & TN

Answered by Charles Fletcher Medicare Insurance Agent

Jennifer Sigman · Answer

You can save money upfront with Medicare Advantage plans because many have low or $0 monthly premiums, but you typically pay copays as you use services. They work well for some people, but if you have more healthcare needs, the out-of-pocket costs can add up compared to a plan with more predictable expenses.

Answered by Jennifer Sigman on April 6, 2026

Broker Licensed in OH, AL, IA & 12 other states

Answered by Jennifer Sigman Medicare Insurance Agent

Pamela Camey · Answer

For most individuals the answer is YES.  Medicare advantage plans can save money on healthcare costs compared to Original Medicare, especially when it comes to out-of-pocket expenses and premiums.  However, there are very important considerations to Medicare Advantage plans. All Medicare Advantage plans have network restrictions, and Prior Authorization for certain services are required. The cost and benefits vary greatly between plans.  It's important to understand and review how these plans differ. Compare them carefully.  
There is potential savings with Medicare Advantage plans.  They often have lower monthly premiums, and reduced cost-sharing. Many plans offer lower copayments, co-insurance and deductible for medical services.  Most Medicare Advantage plans include Prescription drug coverage as well.  All Medicare Advantage Plans have a maximum out of pocket spending limit.  Which means to you, should you ever reach the out-of-pocket maximum, you will not have to pay for services the rest of the year. Medicare Advantage plans provide extra benefits like dental, vision, hearing and fitness program, which many find attractive if they need those services.  The easiest way to remember - you pay as you go when you use a Medicare Advantage Plan. Recent studies have shown Most seniors on Medicare Advantage plans so an average  savings of $2,541 a year.

Jason Hark, MBA, CMIP · Answer

They can save you money because they often have lower monthly costs and extra benefits like vision or dental. But sometimes you might pay more if you go to doctors outside their network or need extra care.

Answered by Jason Hark, MBA, CMIP on June 4, 2025

Broker Licensed in IL, AL, AR & 17 other states

Answered by Jason Hark, MBA, CMIP Medicare Insurance Agent

Paul Barrett · Answer

The honest answer is yes and no — and anyone who tells you otherwise isn't giving you the full picture.
Whether a Medicare Advantage plan saves you money depends on a lot of factors. Where you live. What plans are available in your area. What kind of health you're in. How often you're actually using your coverage. And a dozen other things that are unique to your situation.
Here's what we do know. For many consumers, Medicare Advantage can absolutely save you money. One year might cost you a little more than the next — maybe you had a health event, maybe you used the plan more than usual. But then you have a couple of good years and you make it back. Over time it tends to even out, and often tips in your favor.
We've looked at this over ten-year spans and the numbers tell an interesting story. For most consumers, the combined cost of a Medigap plan, a standalone Part D drug plan, and a dental plan is significantly higher than what you'd pay with a well-chosen Medicare Advantage plan that bundles all of that together. When you add up those three separate premiums — month after month, year after year — the gap becomes real money.
That doesn't mean Medicare Advantage is the best choice for everyone. It isn't. But the question was whether it can save you money — and the answer is genuinely yes, for a lot of people.
The catch is that there's no perfect plan that works for every single person. The right answer depends entirely on you — your health, your doctors, your budget, and your priorities. That's exactly why having an independent broker in your corner matters. Someone who can look at your specific situation, run the real numbers, and give you an honest answer — not a sales pitch.

Jeremy Wassermann · Answer

Medicare Advantage plans often save money for many enrollees compared to Original Medicare, especially through low or zero premiums and out-of-pocket caps, though savings depend on health needs, plan choice, and usage.

Premium Costs
Everyone pays the standard Part B premium of $202.90 monthly in 2026. Medicare Advantage plans average just $14 monthly (67% have $0 premium beyond Part B), far below Original Medicare plus Medigap and Part D, which can exceed $200–300 total.

Out-of-Pocket Limits
Medicare Advantage caps annual out-of-pocket spending at $9,250 in 2026 (many plans lower), after which covered services are free. Original Medicare has no cap, potentially leading to unlimited costs without supplemental coverage.

Average Savings
Studies show typical enrollees save 18–24% on monthly out-of-pocket costs, or about $140 monthly, versus Original Medicare. One analysis found $1,640 annual savings over Traditional Medicare, with 40% lower cost burden; another pegged total spending at $3,651 yearly in MA versus $7,790 with Original plus supplements.

Potential Drawbacks
Savings aren't guaranteed—networks, copays, and prior authorizations can raise costs if you use out-of-network care or need frequent services. Those switching later may face Medigap barriers.

Steven Bleicher · Answer

There is no way of giving you a guaranteed reply! There are pros and cons of both the Med. Suppmts. and an MAPD plan. It has to do with your health and family history, your finances, the Rx's you have been prescribed and luck. Just be sure to meet with 2-3 agents, making sure that none of them are “captive” agents! Those are reps who can only offer one company's plans. Ask if they are independent reps or brokers? Those folks have affiliations with many firms and can tailor the presentation toward some of your vital needs.

Answered by Steven Bleicher on May 13, 2025

Broker Licensed in AZ

Answered by Steven Bleicher Medicare Insurance Agent

Steve Houchens · Answer

Medicare Advantage plan may be able to save significantly due to many having a zero premium and offering additional coverage such as dental, vision and drug coverage all in one plan. You can look at and compare benefits with a licensed and certified agent.

Answered by Steve Houchens on August 9, 2025

Agent Licensed in KY & TN

Answered by Steve Houchens Medicare Insurance Agent

Jim Tretola · Answer

Medicare Advantage Plans definitely save you money…….IF, you are healthy and do not require treatment.
It is important to consider all factors such as you health, your budget, and your preferences

Timothy Brown · Answer

As it relates to saving money on Medicare Advantage, here's what I will say. Medicare Advantage plans, number one, are typically low cost, anywhere from zero to less than $100 for the plan. The copays are really predictable, and even though you have a maximum out-of-pocket, it's mainly designed to control the cost you have regarding out-of-pocket expenses. So the short answer is yes, Medicare Advantage plans can save you money based on the fact that you have low monthly premiums and copays for various services. If you don't go to the doctors that often, you can reap those benefits of saving over time.

Lea Vollmer · Answer

Yes, if you are in good health and do not visit the doctor much, you pay as you go. That is what I call the Medicare Advantage side of the street, Pay as you go. If you are in a supplement plan with Original Medicare, you pay regardless, even if you never go to the doctor that year. I call this the snowbird a la cart side of the street. And make sure you have part D. You can only be on one side of the street or the other.

Answered by Lea Vollmer on May 13, 2026

Broker Licensed in IL, AL, AZ & 7 other states

Answered by Lea Vollmer Medicare Insurance Agent

Mal Varlack · Answer

Yes. Versus you having no plan at all or Original Medicare. Absolutely. Medicare Advantage Plans have a “cap” on the amount you spend out of pocket yearly. With Original Medicare (just the red, white and blue card) you don’t have a cap and are subjecting yourself to 20% of the cost of healthcare and THERE IS NO LIMIT. Also instead of paying the full bill for a visit or a medication (if covered), you pay a copay (a set amount) or a coinsurance ( a specified percentage).

Answered by Mal Varlack on April 17, 2025

Broker Licensed in FL, AZ, GA & 11 other states

Answered by Mal Varlack Medicare Insurance Agent

Valerie Schurman · Answer

Yes because they are designed as a pay as you go to doc or labs or hospital etc with lower copays        but once you reach out your max out of pocket your done paying for the year 

thanks

Stephanie Yarberough · Answer

Medicare Advantage Plans can be a cost-effective method for individuals seeking limited or moderate medical care, as the monthly premiums are generally much lower than those of a Medicare Supplement Plan. You do have copays and coinsurance on a Medicare Advantage Plan, so it really depends how much and what type of medical care you are using as far as overall costs.

Answered by Stephanie Yarberough on March 17, 2026

Broker Licensed in PA

Answered by Stephanie Yarberough Medicare Insurance Agent

Becki Jennings · Answer

Sometimes. Medicare Advantage Plans have copays and a maximum out of pocket. For people who have high utilization of their health insurance, Medicare Advantage may be cost prohibitive. But for people who have less utilization, Medicare Advantage could be a great way to save money.

Answered by Becki Jennings on June 4, 2025

Agent Licensed in MO

Answered by Becki Jennings Medicare Insurance Agent

Robert Jones · Answer

You can, but it depends on the individual and their utilization. Please contact me to review - Bob Jones - The Jones Group. Thank you!

Justin Fox · Answer

This is a complicated question. If you are relatively healthy and do not need extensive medical care, it certainly does. This is because you can find a lot of Medicare Advantage plans that are very low cost or in some cases zero for premium(you still pay your part B premium). They often include extra benefits, such as routine vision, hearing, and dental care. It can also include gym memberships or wellness programs, this could also save you money. Most Medicare Advantage plans include prescription drug coverage(MAPD), that way you don't have to buy a separate Part D plan with an additional premium.

The other side of the coin is, if you have a serious illness, requiring frequent specialist visits or stays, your total out of pocket costs could be higher than with Original Medicare plus a robust medigap plan. The reason is a Medigap plan covers most of Original Medicare's cost sharing (depending on medigap plan selection). Plus you need prior authorizations for certain services, this can sometimes lead to delays, denials of care, or inconvenience.

The bottom line is that every person's care is different and unique. It's important to have an agent you like and trust. That way you can go over your coverage regularly to make sure it fits your needs and budget.

Fred Manas · Answer

Medicare Advantage plans can potentially save individuals money, particularly when compared to original Medicare with a Medigap policy. Many Advantage plans have no premiums or low deductibles, and they often offer a maximum out-of-pocket spending limit, which can protect beneficiaries from large healthcare bills. However, the actual savings depend on individual circumstances and the specific plan chosen. 
Here's a more detailed look:
Premiums and Deductibles:
Many Advantage plans have lower premiums than original Medicare, with some even offering $0 premiums. Additionally, deductibles may be lower or nonexistent. 
Maximum Out-of-Pocket Costs:
Medicare Advantage plans typically have a maximum out-of-pocket limit for covered services, which can be lower than the potential costs under original Medicare. Once this limit is reached, the plan covers 100% of the remaining covered services for the rest of the year. 
Additional Benefits:
Advantage plans often include additional benefits not covered by original Medicare, such as vision, dental, and hearing care, which can lead to long-term savings. 
Potential Savings on Specific Services:
Research suggests that switching to a Medicare Advantage plan may lead to cost savings on certain services like laboratory testing and medical equipment. 
HMO Plans:
If you choose a HMO plan, you may see even greater savings on healthcare services provided by your network. 
Out-of-Network Costs:
While Advantage plans may save money for in-network care, out-of-network costs can be higher and may not be covered. 
Individual Circumstances:
The savings potential of Advantage plans vary based on individual health status, frequency of healthcare needs, and the specific plan selected. 
Medigap:
Choosing a Medigap plan alongside original Medicare can provide similar cost protections and out-of-pocket limits as Medicare Advantage, but with the benefit of no network restrictions.

Carol Thompson · Answer

This is a very vague question- evaluating each person’s ailments and conditions is a factor to consider when determining which type of plan works best for an individual.

Todd Bostic · Answer

The difference in a Medicare Advantage Plan and a Medicare Supplement or Medigap plan is simply that you pay a premium every month for the Medigap plan, and you also have to purchase a drug plan, and if you want a dental, vision or hearing plan, you have to purchase that.  With a Medicare Advantage plan, it typically comes with a drug plan in most cases, and a lot of times, it comes with a dental hearing and a vision plan.  Sometimes it comes with an Over the counter benefit or transportation benefit. 

Usually, in most cases the cost of the plan itself is very low, but the visits to doctors, labs, and hospitals all have a copay for Medicare Advantage, but a Medicare Supplement is all included.  A lot of people that have a Medicare Supplement have one for security, so the debate on which is better between the two is up in the air.  I will suggest the one you can afford, or the one I feel like you need, not the one that will make me the most money.

My Client is more important to me.

Andrew Kelly · Answer

Medicare Advantage plans typically have a small or no monthly cost. That said, there can be significant co-pays, and the MOP (maximum out of pocket) can be between $6000 and $10000. This translates into a big out of pocket liability should you have a significant medical event. Many clients prefer Original Medicare because the out-of-pocket costs are known and can be budgeted for with absolute certainty. It's all about flexibility and meeting your individual needs.

Answered by Andrew Kelly on July 18, 2025

Agent Licensed in WA & OR

Answered by Andrew Kelly Medicare Insurance Agent

Julie Thompson · Answer

They can save you money because many of the plans have $0 copay for many of the services including inpatient hospital stays. Also many of the plans have no additional monthly premium other than your Part B premium. The Part B premium for 2026 will ne increasing to $202.90 from $185 for 2025.

Answered by Julie Thompson on November 16, 2025

Agent Licensed in CA, AZ, KY, NV & TN

Answered by Julie Thompson Medicare Insurance Agent

Glenn Alterman · Answer

MAPD plans can save money as it’s an all inclusive plan dental, vision, sometimes with a spending card and sometimes with transportation

Amy Jones · Answer

Medicare Advantage plans are designed to have low to $0 monthly premiums, meaning that the plan may cost you little to nothing out of pocket for the coverage, however they typically have copays and sometimes deductibles that vary from one plan to another. The difference from Medicare Supplement plans in that Supplements usually has higher out of pocket costs for maintaining the coverage, regardless of whether you ill use the plan or not, but the copays and deductibles are typically lower, often $0, on a Supplement plan. Another important thing to remember with Medicare Advantage plans is that they have MOOP (Maximum Out of Pocket) limits, and once that limit is reached, you would not be responsible for any further costs for Medicare covered Part A and Part B services for the remainder of the year. The MOOP also varies from one plan to another. 

It is important when choosing a Medicare plan to discuss the benefits, costs of premiums , copays, and deductibles, as well as what is covered, with an insurance broker who can advise you of the costs you might pay on any plan you consider. A good broker will compare plan options to ensure that your coverage needs are met for the least amount of money possible.

Tony Hardwick · Answer

Medicare Advantage plans can help save money by providing a $0 monthly premium and providing assistance with prescription costs. If you have no specialty doctors you'll have a $0 co-pay to see your primary doctor. You can even qualify for extra help with prescriptions and drug deductibles.

Answered by Tony Hardwick on March 31, 2025

Broker Licensed in GA, AL, AR & 32 other states

Answered by Tony Hardwick Medicare Insurance Agent

Kris Neupauer · Answer

This is always an individualized answer. Not to be coy, but there are a few questions that have to be asked. First, for someone to go into a medicare advantage plan, we're a medicare supplement plan to make sure that it is going to give you the results you're looking for as your priority. If you have perfect health today and for the rest of your life, then an advantage plan will definitely save you money. And in some cases where you are
In need of moderate doctoring or medical issues, they can still save you money. But beyond a shadow of a doubt, if you get very sick. A Medicare supplement plan will always be the better option. When you weigh everything out. This is why, looking at going into Medicare. All your own is never a good idea. And you should always have help from a licensed medicare, broker or agent.

Raid Alemam · Answer

Yes Medicare advantage plans can save you money on premiums deductibles and maximum out of pocket . Also it has extra supplemental benefits such as dental , vision and hearing that you add on with low premiums.

Answered by Raid Alemam on September 28, 2025

Broker Licensed in TX, CA, CO & 7 other states

Answered by Raid Alemam Medicare Insurance Agent

Greg Strasma · Answer

I believe they do.  That is why I chose to enroll in one myself instead of a Medicare Supplement plan.  With Medicare Advantage you normally get into a $0 monthly premium plan that provides your medical, dental, prescription drugs, hearing and vision benefits at no additional costs.  Your only true cost is to pay for Medicare Part B which all of us have to do unless you have Medicaid from your state.

With a Medicare Supplement plan, you have to also pay for your Part B costs every month.  Plus you have to pay the monthly premium for that plan that will start out around $175 or more per month every month even if you don't have any medical needs.  There is also an annual deductible with a Medicare Supplement plan that will run $288 in 2026 before your plan even begins to pay.  And you have to add a Prescription Drug plan to your insurance and that can run from $0 to $40 per month depending on what meds you need to cover.  Dental?  Even more costs of up to $100 per month premium and if you need major work, there is a waiting period for that.  You don't have a waiting period for a Medicare Advantage plan.

I sell very little Medicare Supplement plans to clients.  I will if they insist, but after walking thru the math, Medicare Advantage plans to me are the must more economical way to go.

Casey Graves · Answer

In comparison to Original Medicare, Medicare Advantage plans can certainly save money because you are financially protected by a max-out-of-pocket which is something you don't have with original Medicare!

Answered by Casey Graves on April 21, 2026

Broker Licensed in TN

Answered by Casey Graves Medicare Insurance Agent

Jajuan Knox · Answer

Medicare Advantage plans can save you money, but it really depends on how you use them and what your health needs are. Many people like them because they often have lower monthly costs than Original Medicare plus a Medigap plan, and they may include extra benefits like vision, dental, or hearing that Original Medicare doesn’t cover.
However, you can still pay a lot out‑of‑pocket for care if you go out of network, need frequent specialist visits, or have expensive prescriptions — so it’s important to compare total costs (not just the premium) and make sure the plan fits your doctors and meds. Some people save money overall, while others end up spending more depending on their situation.

Christopher Matthews · Answer

Yes, Medicare Advantage plans can save money by offering lower premiums and out-of-pocket costs compared to Original Medicare with a Medigap plan. Many also include extra benefits like dental, vision, and prescription drug coverage, which can reduce overall healthcare expenses.

Answered by Christopher Matthews on November 1, 2025

Agent Licensed in FL

Answered by Christopher Matthews Medicare Insurance Agent

John Weaver · Answer

It depends on your health, the cost of benefits, and the type of plan you have. Since medications have been capped at $2,000 in 2025 and $2,100 in 2026, this might still be an issue if the plan doesn't cover certain medications. PPOs, or Preferred Provider Organizations, tend to have a high MOOP (Max Out-of-Pocket). Your hospitalization for the first 4-7 days is usually over $300.00; labs, CTs, and seeing a specialist also have costs.

Answered by John Weaver on November 4, 2025

Broker Licensed in CA, AZ, IL & 7 other states

Answered by John Weaver Medicare Insurance Agent

Debbi Wallace · Answer

That would depend on what your needs are. If you have minimal medical needs then a zero premium might be for you. However, if you have numerous medical conditions and frequent doctor visits you might want to look at a supplement.

Answered by Debbi Wallace on December 29, 2025

Agent Licensed in KS

Answered by Debbi Wallace Medicare Insurance Agent

Martha Lopez-Elkind · Answer

Typically, Medicare Advantage plans offer health plans with zero premium, low or no deductible and low or at least manageable maximum out of pocket (MOOP) expenses. In addition, these plans cover you prescriptions (PDP) PartD, as well as other benefits (State by State basis), such as dental, vision,etc. 
Compare that to Medicare Supplement (Medigap) where you would normally have to pay a monthly premium with discounts to dental, vision and drug plans with the option to go anywhere Medicare is accepted, you get to decide what option is best for your needs.

Darnel Brown · Answer

It depends 
In most cases reasonable healthy seniors, it can work if your doctors and medications work with the plan you are looking to join. But it does have limitations on providers and you must have referals for some procedures and doctors on some plans.

David Fiveash · Answer

You save money in premiums but you will have out of pocket expense for many of medical services. The more you use the more you pay. It may look good on paper but you will never know what code the medical providers will use that changes the price you thought you may pay since the policies are generic in what is say it will cover.

Answered by David Fiveash on November 17, 2025

Broker Licensed in TX, AR, LA, MS, NM & OK

Answered by David Fiveash Medicare Insurance Agent

Tanja Roulhac · Answer

Medicare Advantage (MA) plans do not consistently save money for the Medicare program overall. In fact, CMS reports and studies (e.g., from KFF and MedPAC) indicate that MA plans often result in higher spending per enrollee compared to traditional Medicare, due to overpayments, administrative costs, and increased utilization. For instance, a 2021 KFF analysis estimated that MA added $7 billion in excess costs in 2019 alone.


While some MA plans may offer lower premiums or out-of-pocket savings for individual beneficiaries, the program as a whole has not generated net savings and contributes to Medicare's financial challenges.

Lesley Paul · Answer

An Advantage Plan can save you money because you do not pay a monthly premium, and your prescription drug coverage is included. You do have some copays and deductibles. However, I would also advise that if you see lots of doctors and pay frequent copays and deductibles, a Medigap plan might suit you better, because you will pay a monthly premium, but essentially no copays or other out of pocket expenses.

Answered by Lesley Paul on December 2, 2025

Agent Licensed in FL

Answered by Lesley Paul Medicare Insurance Agent

Jonathan Brower · Answer

Medicare Advantage plans may save money but primarily for people with few health issues who visit the doctor less often.  Advantage plans have lower monthly premiums than a supplement plan.  Many $O plans are available across the US.  Purchasing a supplement assures your medical costs for the year are mostly paid.  The more you have to use an Advantage plan the more costly it becomes.  Most services beyond preventative will have either co-pays or co-insurance costs.  Advantage plans have a maximum out of pocket amount associated with each plan.  
You will have to examine your situation and determine which path makes the most sense for you.    Seek out a broker willing to walk you through what either plan type looks like for you.

Glenda Martin · Answer

Medicare Advantage plans can potentially save you money, but it depends on your individual circumstances and healthcare needs. Here's a breakdown:

Pros:

•  Lower Premiums: Many Medicare Advantage plans have low or no monthly premiums, which can save you money compared to traditional Medicare with a Medigap policy.
•  Out-of-Pocket Maximums: Medicare Advantage plans have a maximum out-of-pocket limit, which can protect you from high medical bills. Once you reach this limit, the plan covers 100% of covered services for the rest of the year.
•  Additional Benefits: Many plans include extra benefits like dental, vision, and hearing care, which can lead to long-term savings.
•  Prescription Drug Coverage: Most Medicare Advantage plans include prescription drug coverage, which can save you money on medication costs  .

Cons:

•  Network Restrictions: Medicare Advantage plans often have network restrictions, which can limit your access to certain providers and potentially lead to unexpected costs.
•  Copays and Coinsurance: While premiums may be low, Medicare Advantage plans can involve copays and coinsurance costs that add up.
•  Prior Authorizations: Some plans require prior authorizations for certain services, which can delay care.

Who Can Benefit:

•  Low Healthcare Users: If you don't use healthcare services frequently, a Medicare Advantage plan might be a cost-effective option.
•  Those Who Value Predictable Costs: The out-of-pocket maximum in Medicare Advantage plans can provide financial predictability and protection.

Who Might Not Benefit:

•  High Healthcare Users: If you have chronic conditions or frequent medical needs, you might end up paying more out-of-pocket with a Medicare Advantage plan.
•  Those Who Value Provider Flexibility: If you prefer to see doctors outside a specific network, traditional Medicare or a Medigap plan might be a better fit .

Alaina Frederick · Answer

This is a very personalized question. It depends on so many factors. Speaking with your local Broker will help you understand the pro's and con's of what is at stake with regard to each option of selecting secondary coverage to Original Medicare. Please feel free to reach out. I can send you a link to schedule a quick phone call on my calendar.

Answered by Alaina Frederick on October 16, 2025

Agent Licensed in MO, AZ, IA & KS

Answered by Alaina Frederick Medicare Insurance Agent

Michael Claunch · Answer

You definitely save money on your premiums and Medicare B deductible. How much you save all comes down to how high is your supplement premium vs how much you use your Medicare Advantage and what is that plans max out of pocket.

Answered by Michael Claunch on April 7, 2025

Agent Licensed in TN

Answered by Michael Claunch Medicare Insurance Agent

Isaac Witham · Answer

How Medicare Advantage Can Save Money
1️⃣ Lower Monthly Premium
Most Medicare Advantage plans have:
$0 or low monthly premiums
Still must pay Part B premium
Compared to Medigap (which might cost $150–$250+ per month), this is a big upfront savings.
2️⃣ Built-In Maximum Out-of-Pocket
Advantage plans include an annual max out-of-pocket (MOOP).
Original Medicare + supplement:
No cap on Medicare alone
Supplement lowers costs but costs more monthly
Advantage:
Has a yearly cap (often $3,000–$7,500 depending on plan)
That protects against catastrophic costs.

Do Medicare Advantage plans save money?

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Do Medicare Advantage plans save money?

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Seniors: Ask a Question of Your Own

Related Questions

Agent Locator

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A non-government resource website