Monthly Cost of Medicare Advantage Plans
In 2025, Medicare Advantage (MA) plans offer an attractive alternative to Original Medicare (Part A and Part B) for many seniors. With an average monthly premium of around $17, these plans provide comprehensive healthcare coverage at a relatively affordable price[1].
However, it's essential to understand that the monthly cost charged by the Medicare Advantage plan itself is only one part of the equation. Enrollees must also pay the standard Medicare Part B premium, which starts at $185/month in 2025 but can be higher depending on income[1].
The range of Medicare Advantage premiums varies widely by plan and location, often falling between $0 and a few hundred dollars monthly[1]. To help individuals make informed decisions, Medicare offers a cost comparison tool that allows people to compare the yearly cost of Original Medicare with that of Medicare Advantage plans[6].
Beyond premiums, individuals need to consider other out-of-pocket costs associated with Medicare Advantage plans, including deductibles, copayments, coinsurance, out-of-pocket maximums, and prescription drug costs.
- **Deductibles:** Some Medicare Advantage plans may include deductibles that must be met before coverage begins. - **Copayments and coinsurance:** Plans often require fixed copayments for doctor visits, specialist care, or hospital stays. These amounts can vary by service. - **Out-of-pocket maximums:** Medicare Advantage plans are required to cap annual out-of-pocket spending for covered services. In 2025, this maximum is typically a few thousand dollars (exact limits vary by plan). - **Prescription drug costs:** Many Medicare Advantage plans include Part D drug coverage; in 2025, the maximum out-of-pocket limit for prescription drugs is capped at $2,000 due to the Inflation Reduction Act[4]. Monthly drug plan premiums average about $47 but vary by plan and income[1].
When considering a Medicare Advantage plan, individuals should factor in these costs to get a complete picture of their expected healthcare expenses.
|Cost Component|Typical Amount or Range in 2025| |-|-| |Monthly Medicare Advantage premium|$0 to a few hundred dollars, average ~$17| |Medicare Part B premium|Starts at $185/month, higher for higher incomes| |Deductibles|Varies by plan, some may have zero| |Copayments/Coinsurance|Varies by service and plan| |Out-of-pocket maximum|Plan-dependent, usually capped at several thousand dollars annually| |Prescription drug premium (Part D)|Average $47/month, plus income-related surcharge possible| |Prescription drug out-of-pocket limit|Capped at $2,000 annually starting in 2025|
It's important to note that the figures for traditional health insurance premiums and deductibles from ACA Marketplace plans or employer plans are much higher and not directly comparable to Medicare Advantage plans and their costs[2][3]. Medicare Supplement (Medigap) premiums are also listed separately and tend to be higher monthly but cover gaps in Original Medicare[5].
For more resources to help guide you through the complex world of medical insurance, visit the Medicare hub. People with a limited income may receive help with Medicare Advantage payments if they qualify for Medicare Savings Programs (MSPs) or Medicaid[7].
[1] https://www.medicare.gov/sign-up-change-plans/types-of-medicare-health-plans/medicare-advantage-plans [2] https://www.healthcare.gov/glossary/aca-marketplace/ [3] https://www.medicare.gov/employer-plans-info/employer-group-health-plan-costs-and-coverage/employer-group-health-plan-costs-and-coverage.html [4] https://www.medicareadvocacy.org/2022-out-of-pocket-limit-for-part-d-beneficiaries-to-be-reduced-to-5000/ [5] https://www.medicare.gov/supplements-other-insurance/medigap-policy-information/what-medigap-policies-are-sold [6] https://www.medicare.gov/find-a-plan/compare-plans/?InitialTab=0 [7] https://www.medicare.gov/your-medicare-costs/getting-extra-help-to-pay-for-your-medicare-costs/medicare-savings-programs-msps.html
- The monthly cost of Medicare Advantage (MA) plans, on average, is around $17, but enrollees must also pay the standard Medicare Part B premium, which can be higher depending on income.
- The range of Medicare Advantage premiums varies widely by plan and location, often falling between $0 and a few hundred dollars monthly.
- Beyond premiums, individuals need to consider out-of-pocket costs associated with MA plans, including deductibles, copayments, coinsurance, out-of-pocket maximums, and prescription drug costs.
- Some Medicare Advantage plans may include deductibles that must be met before coverage begins, while others may have zero deductibles.
- Medicare Advantage plans require fixed copayments for doctor visits, specialist care, or hospital stays, and these amounts can vary by service.
- Medicare Advantage plans are required to cap annual out-of-pocket spending for covered services, with the maximum typically a few thousand dollars in 2025 (plan-dependent limits).
- Many Medicare Advantage plans include Part D drug coverage, and the maximum out-of-pocket limit for prescription drugs is capped at $2,000 due to the Inflation Reduction Act in 2025.
- For people with a limited income, assistance with Medicare Advantage payments may be available if they qualify for Medicare Savings Programs (MSPs) or Medicaid.
