How Medicare Advantage plans can have no premium

When choosing the right Medicare Advantage (Part C) plan, it’s important to do your research. Many Medicare Advantage plans cover Medicare Parts A and B, Part D prescription drug coverage, and additional hearing, dental and vision benefits.

Plans and their coverage offerings can vary significantly. That gives you the ability to compare and choose from a robust selection of Medicare Advantage plans, so you can enroll in the kind of coverage that best suits your health care and financial needs.

For some people, the best option is a zero-premium plan, but there are many things to consider before deciding. Let’s talk through the benefits and drawbacks of zero-premium Medicare Advantage plans.

What is a zero-premium Medicare Advantage plan?

As the name suggests, a zero-premium Medicare Advantage plan requires no monthly premium. Many zero-premium plans offer the same benefits as other Medicare Advantage coverage options, like vision, dental, hearing, Part D prescription drug coverage and more.

Can Medicare Advantage plans really be free?

The short answer is yes and no. While you won’t pay a monthly premium, there are still many out-of-pocket expenses to consider, like deductibles, copays and coinsurance – and often these cost-sharing rates are higher than other plans.

Also, you’ll still be responsible for making your monthly Part B premium payments, as Part B coverage is required for you to qualify for a Medicare Advantage plan. (Although some plans include a Part B premium giveback.) Depending on your coverage needs, a zero-premium plan may help you save on costs.

Are you a Twin Cities resident looking for a $0 Medicare Advantage plan that includes a Part B premium giveback?

How zero-premium Medicare Advantage plans work

All Medicare Advantage plans receive funding from the government per enrollee. Health insurance companies work to create Medicare Advantage plans that use this money efficiently, allowing them to transfer savings to members. This might mean more funding toward extra perks like senior givebacks or zero-premium benefits.

Medicare Advantage plans save money by contracting with specific networks of doctors, specialists and hospitals. Many also offer members access to a variety of preventive care services, allowing them to manage their overall health and prevent larger issues. This, in turn, keeps members’ health care costs low.

A budget-friendly option if you think you’ll need minimal care

A zero-premium Part C plan might be a good, budget-friendly plan option if you don’t expect to receive many health care services throughout the year. You’ll still have coverage when you need it, but you can save on monthly premium payments. Plus, if you experience an emergency or develop a health condition for which you need consistent care, most Medicare Advantage plans have a yearly limit on how much you’ll have to pay out of pocket.

When considering enrolling in a zero-premium plan, make sure that the network your plan contracts with gives you access to the kinds of providers you need and covers the prescription drugs you take. Also, confirm that cost-sharing expenses, like copays and coinsurance, are within your budget.

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