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
So what’s the catch?
Of course, no Medicare Advantage plan is really $0 cost. You may still pay deductibles and copays for covered services, and you’ll still have to pay the Part B premium. But depending on your own personal healthcare needs, a Medicare Advantage plan may be worth it for the added benefits.
Medicare Advantage plans also offer one level of predictability not available with Original Medicare: There’s a yearly limit on how much you’ll have to pay out of pocket.
When can I enroll in a $0 monthly premium Medicare Advantage plan?
There are a few different times you can shop for a $0 monthly premium Medicare Advantage Plan. Your Initial Enrollment Period (IEP) for Medicare begins 3 months before the month of your 65th birthday, including your birthday month, and continues through the 3 months after the month of your 65th birthday. During this time, you could choose to sign up for a Medicare Advantage plan if you enroll in both Part A and Part B of Medicare.1
You may enroll in a $0 monthly premium Medicare Advantage plan during the Initial Coverage Election Period (ICEP). This period may run parallel with your IEP, as it also begins 3 months before you turn 65 when you choose to enroll in both Medicare Parts A and B. However, if you decide to enroll in Part B later, your ICEP begins 3 months before your Part B coverage takes effect. During this period, you may enroll in a Medicare Advantage plan.2 For more information, see our article on the ICEP for Medicare.
You could also shop for a $0 monthly premium Medicare Advantage plan during the Medicare Annual Enrollment Period (AEP). This is a period each year from Oct. 15 to Dec. 7, where you may switch to a new Medicare Advantage plan or enroll in Medicare Advantage for the first time.3
If you are already enrolled in Medicare Advantage, you could also shop for $0 monthly premium plans during the Medicare Advantage Open Enrollment Period (OEP). This takes place from Jan. 1 to March 31 each year. During the Medicare Advantage OEP, you can disenroll from your current Medicare Advantage plan and switch to a new one.4