Are Medicare Advantage Plans Really "Free"? Here’s the Truth

Why Do People Say Medicare Advantage Plans Are Free?

The word “free” gets tossed around a lot these days, especially in conversations about healthcare. However, as anyone who’s ever looked closely at their options knows, “free” usually comes with some fine print.

So, when you hear about $0 premium Medicare Advantage Plans or free Medicare Advantage plans, what’s the real story? Let’s break it down so you know exactly what to expect.

What Is a Medicare Advantage Plan?

Medicare Advantage Plans—sometimes called MAPDs—are an alternative way to receive your Medicare benefits. Instead of sticking with Original Medicare (Parts A and B), you can choose a Medicare Advantage Plan that bundles your hospital, medical, and often prescription drug coverage into one plan.

Many of these plans also offer extra benefits like dental, vision, hearing, or wellness perks that Original Medicare doesn’t cover.

Medicare Advantage Plans are offered by private insurance companies approved by Medicare. These are annual contracts, typically running from January 1 to December 31 each year—unless you’re enrolling later or qualify for a Special Enrollment Period.

Why Do Some Medicare Advantage Plans Have a $0 Premium?

Here’s where the confusion about “free” comes in. Many Medicare Advantage Plans advertise $0 monthly premiums, but that doesn’t mean you won’t pay anything for your healthcare.

You’re still responsible for your Medicare Part B premium. Additionally, you’ll have out-of-pocket costs like copays, coinsurance, and sometimes deductibles when you use healthcare services.

The reason some plans can offer $0 premiums is that Medicare pays the insurance company a set amount to manage your care.

This money comes from the Medicare program—which you’ve already paid into over your working years through payroll taxes—rather than directly from your pocket each month.

What Costs Should You Expect?

• Part B Premium: You must keep paying your Part B premium, even if your Advantage Plan has a $0 premium.

• Copays & Coinsurance: Expect to pay a set amount when you visit doctors, specialists, or use certain services.

• Deductibles: Some plans have medical or prescription drug deductibles.

• Maximum Out-of-Pocket Limit (MOOP): There’s an annual cap on how much you’ll spend on covered services, which can offer peace of mind.

  
  

Medicare Advantage vs. Medicare Supplement (Medigap)

It’s important not to confuse Medicare Advantage Plans with Medicare Supplement (Medigap) policies. Medigap plans work alongside Original Medicare to help cover costs like deductibles and coinsurance, but they don’t include prescription drug coverage.

If you want drug coverage with Medigap, you’ll need to enroll in a separate Part D plan.

How Do Medicare Advantage Plans Get Paid?

When you enroll in a Medicare Advantage Plan, Medicare shifts the funds it would have spent on your care to the private insurance company offering your plan. This arrangement gives insurers a strong incentive to keep you healthy—after all, healthier members mean lower costs.

That’s why Medicare Advantage Plans often include preventive care programs, disease management, and wellness incentives like gym memberships or healthy food cards. The focus is on helping you stay well, catch issues early, and avoid costly complications.

What About Doctor Networks?

Most Medicare Advantage Plans use a network of doctors, hospitals, and other providers. You’ll generally pay less when you use in-network providers, but going out-of-network may cost more or might not be covered at all (except in emergencies).

Is Medicare Advantage Right for Everyone?

Not necessarily. Everyone’s health needs and financial situation are different. For example, if you have a chronic condition or see a lot of specialists, you might prefer the flexibility of Original Medicare with a Medigap plan, which lets you see any provider nationwide who accepts Medicare—no referrals needed.

That’s why it’s smart to talk with a licensed insurance agent who can help you compare your options and find the coverage that fits your needs and budget.

Can You Get Help Paying for Medicare?

If you have a limited income, there are programs that can help with your Medicare costs. These range from assistance with prescription drug expenses to help paying your Part B premium, and sometimes even support with copays, deductibles, and coinsurance.

Frequently Asked Questions About Medicare Advantage Plans

Q. Are Medicare Advantage plans really free?

A. No plan is truly “free.” Many Medicare Advantage plans offer $0 monthly premiums, but you still need to pay your Medicare Part B premium and may have out-of-pocket costs for copays, coinsurance, and prescriptions.

Q. What’s included in a Medicare Advantage plan?

A. Most Medicare Advantage plans cover everything Original Medicare does, often with added benefits like prescription drug coverage, dental, vision, hearing, wellness programs, and more.

Q. Do I still pay my Medicare Part B premium on a Medicare Advantage plan?

A. Yes, you must continue to pay your Medicare Part B premium, even if your Medicare Advantage plan has a $0 monthly premium.

Q. How do Medicare Advantage plans keep costs low?

A. Medicare pays private insurers to manage your care. These insurers use networks and preventive programs to manage costs and may offer extra incentives to keep you healthy.

Q. Can I see any doctor with a Medicare Advantage plan?

A. Most plans have provider networks. You’ll usually pay less if you use in-network doctors and hospitals. Emergency care is always covered, even out-of-network.

Q. How is Medicare Advantage different from a Medicare Supplement (Medigap) plan?

A. Medicare Advantage replaces Original Medicare with a bundled plan from a private insurer, often including drug coverage. Medigap works alongside Original Medicare to help pay for out-of-pocket costs but doesn’t include drug coverage.

Q. Can I switch from Original Medicare to a Medicare Advantage plan?

A. Yes, you can enroll during certain periods, such as the Annual Enrollment Period (October 15–December 7) or if you qualify for a Special Enrollment Period.

Q. What if I have a low income—can I get extra help?

A. Yes, some programs may help cover your Medicare premiums, prescriptions, and other related costs. Our agents can help you find out if you qualify.

Q. Who can I talk to for personalized guidance?

A. The team at E-Advise Insurance is here to help. Call us at 855-855-8301 or visit E-Advise Insurance to get answers and support from a licensed agent.

Need Guidance? E-Advise Insurance Is Here to Help

Choosing the right Medicare coverage can feel overwhelming, but you don’t have to figure it out alone. At E-Advise Insurance, our licensed agents are here to answer your questions, explain your options, and check if you qualify for extra help. Call us at 855-855-8301 or fill out our online request form, and we’ll reach out to guide you every step of the way.