Medicare advantage premiums 2025
In 2025, insurance providers offer a wide variety of Medicare Advantage plans, some even without any premium over what you already have to pay for your Medicare plan B.
Zero Premium Medicare Advantage Plans 2025: You may have heard that some Medicare Advantage Plans offer health coverage at no additional cost over what you already pay for your Medicare Part B premium. Those plans are called ‘Zero Premium’ or ‘$0 Premium’ advantage plans. The way it works is that the government pays Medicare approved private insurance companies that offer these plans to administer Medicare coverage.
If those companies are able to use this money economically (for example by limiting their enrollees to use a specific network of health care providers which those they have special contracts), they can offer better medical and prescription drug benefits than original Medicare.
However, the expression ‘zero premium’ may be misleading – the fact is that if you enroll in such a zero-premium plan, you are still responsible to pay your Medicare Part B premium, plus (depending on the plan) you may still be responsible for out-of-pocket costs like doctor’s office co-payments. So make sure to read the plan’s regulations carefully before you enroll!
How much are Medicare advantage plans in 2025? While some advantage plans have a no monthly plan premium, most do. The premium not only depends on the benefits that are included in the advantage plan, but also on the deductibles or co-payment requirements.
The average premium for Medicare Advantage plans in 2025 is approximately $17.00 per month, according to CMS.gov.
Medicare Advantage plans are usually a good choice to add additional coverage to your original Medicare insurance because they typically offer more protection than Medicare Parts A and B. Many times, you will have coverage for prescription drugs or world-wide coverage included.
Regardless of the Medicare advantage plan you may choose, you must continue to pay your Medicare Part B premium.
Medicare Advantage plans are popular, because other than traditional Medicare, they cap your amount of out-of-pocket costs. For example, traditional Medicare plans typically require you to co-pay 20% of the Medicare-approved amount out of your own pocket. For someone with high medical costs, this can quickly add up. If you are however enrolled in a Medicare Advantage plans, you will have the same if not better benefits, and your annual out-of-pocket expenses will be limited, typically to between $2,000 and $5,000.
While Medicare Advantage plans can provide better coverage at lower overall costs, the choices can seem overwhelming. Depending on where someone lives, the Medicare Advantage plan options may number in the hundreds. In 2025, according to CMS.gov, about 62% of Medicare beneficiaries have access to Medicare Advantage plans with ratings of at least 4 stars – this is because not all plans will be available in all geographic areas. As rates and benefits vary, you need to carefully compare plans from different insurance providers in order to find the one that best fits your health care needs.
