While searching for a Medicare Advantage Plan, you may come across a few options that don’t have a monthly premium. It might be hard to believe, but that $0 premium is possible.
Learn more about why $0 premium Medicare Advantage Plans are available and what you should consider before signing on with one of these affordable options.
How Can a Plan Offer a $0 Premium?
Medicare Advantage Plans (also called Medicare Part C) are run by Medicare-approved private insurance companies. The insurance companies receive a flat-rate payment from Medicare to help cover the costs of some services. Sometimes, the plans spend less than that payment, which means they don’t need to charge members as much for premiums.
The bottom line — the more money the Medicare Advantage Plan can save, the more cost benefits it can pass on to its plan members.
The Medicare Advantage Plans can save money by offering more preventive care services, which keeps members healthy. And healthier members end up having fewer healthcare costs.
Plans can also save money by contracting a specific network of doctors and hospitals. If a member gets care outside of this network, they’ll end up paying more out-of-pocket costs.
Other Costs to Consider
Although a Medicare Advantage Plan may have a $0 premium, it isn’t completely free. Plans will still have deductibles and copayments, so it’s essential to look at those before choosing one. In some cases, a plan without a premium may have higher copayments than a plan with a premium.
Also, remember that you will still likely have to pay monthly Medicare Part B medical insurance premiums. Some Medicare Advantage Plans can cover this monthly premium, but not all. In 2021, the standard premium for Part B is $148.50 a month, but that amount can increase based on your income.
Before choosing a Medicare Advantage Plan, make sure you look at all the costs involved. While a $0 premium may look great on the surface, it’s important to research other costs and the specific services or treatments covered under the plan.