You may be surprised to learn that some Medicare Advantage plans have a monthly plan premium of $0. That's right—zero dollars per month. And that usually includes coverage for services that aren’t covered under Original Medicare.
With Medicare Advantage plans, rather than pay your medical bills directly, the federal government contracts with private insurance companies to administer your plan. You still have all the rights and benefits that come with Original Medicare, but private insurers—like Humana—compete for your business with low premiums and added benefits.
Private insurance companies are able to offer zero-premium Medicare Advantage plans, in part, because:
- To help manage costs, Medicare Advantage plans usually enter into contracts with a network of doctors and hospitals.
- That means you may have to pay more money out of pocket if you see a doctor outside the plan’s network
- Many Medicare Advantage plans offer preventive care and disease management programs to help people better manage their health, and healthy patients generally have lower healthcare costs.
- If a particular Medicare Advantage plan ends up spending less than the flat fee it gets from the government, it can pass the savings on to members.
- That may mean offering plans with a monthly plan premium of $0 or providing additional benefits, such as dental, vision and/or prescription coverage
