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- Published: August 14, 2020
- Updated: October 24, 2023
- 7 min read time
- This page features 11 Cited Research ArticlesKey Takeaways
- The Medicare Advantage premium is $18.50 in 2024, which is an 4% increase from 2023.
- The Part B premium, which you have to pay with a Medicare Advantage plan, is increasing to $174.70 in 2024.
- Additional benefits, what plan you choose and which state you live in can fluctuate the cost of your Medicare Advantage plan.
- Many Medicare Advantage plans have an option with $0 premiums in 2024.
How Much Do Medicare Advantage Plans Cost?
While the average cost for your Medicare Advantage premium is $18.50 in 2024, this isn’t the guaranteed cost for everyone. 99% of Americans had access to a Medicare Advantage plan that included prescription drug coverage with no premium charge in 2023.
To enroll in an Advantage plan, most still have to pay the monthly premium for Medicare Part B (medical insurance). 17% of Medicare Advantage plans even covered a reduction for your Part B premium in 2023, according to the Kaiser Family Foundation.
Consider the potential costs of your Part B premium, which is $174.70 in 2024, when choosing a plan.
Medicare Advantage plans can also offer additional benefits, like dental coverage or meal delivery services, which can increase costs. So, monthly premiums for Medicare Advantage plans vary based on the terms of the plan, the benefits offered and other circumstances.Did You Know?There were 3,998 Medicare Advantage plans available nationwide in 2023. 89% of the plans included prescription coverage, which often has a premium of $0.Source: Kaiser Family Foundation“It’s important to remember that the cost of a Medicare Advantage plan involves more than just the monthly premium. Sometimes the plans with higher premiums actually bring the biggest long-term savings.”
Average Cost of Medicare Advantage Plans in Each State
The most affordable average Medicare Advantage premium is $0 per month in Alaska. The most expensive average premium is $70.77 per month in Minnesota. Refer to the map below to find the average cost of Medicare Advantage Plans in each state.
2023 Average Medicare Advantage Premium Costs by State
States with the most affordable premiums for a Medicare Advantage plan are Alaska, Nevada, Kansas, Missouri and Texas. States with costly Medicare Advantage plan premiums are Minnesota, Massachusetts, Hawaii, Wyoming and North Dakota.Top 5 Most Affordable States for Medicare Advantage Plans
Medicare Advantage Rates by Plan Type
There are two main types of Medicare Advantage plans — health maintenance organizations (HMO) and preferred provider organizations (PPO). With an HMO plan, you can expect to pay lower monthly rates and pay less out of pocket, according to Humana. A PPO plan allows you to see providers in and out of the network without a referral — so you can expect higher rates and out-of-pocket costs.
There are also two main types of PPO plans — local and regional. Local PPOs are typically cheaper, with average rates of $20 a month. Regional PPOs cost closer to $49 a month. Below are 2023 rates for select HMO and PPO plans with Medicare Advantage companies so you have a better idea of what to expect, along with what’s covered.
2023 Medicare Advantage HMO & PPO Rates
Plan Features Humana Honor (HMO) Aetna Medicare Premier (Local PPO) BlueMedicare Choice (Regional PPO) Monthly Premium $0 $0 $67.40 Plan Benefits ✓ Vision
✓ Worldwide emergency
✓ Over-the-counter drugs
✓ Worldwide emergency
✓ Over-the-counter drugs
✓ Worldwide emergency
✗ Over-the-counter drugs
- $0 Primary Doctor Copay
- $25 Specialist Copay
- $10 Primary Doctor Copay
- $50 Specialist Copay
Have you selected your 2024 Medicare plan?Maximize your Medicare savings by connecting with a licensed insurance agent. Annual Enrollment is open until December 7th.
- $0 Primary Doctor Copay
- $50 Specialist Copay
Comparing the Costs of Medicare Advantage Plans
When comparing the costs of Medicare Advantage plans, be sure to consider the benefits you are receiving. For example, a free Medicare Advantage plan with a $0 premium may sound enticing, but the plan may come with bare-bones coverage.
A low premium may not be a good bargain if you end up paying hefty copayments on prescription drugs or have to pay the full costs of the benefits you passed up for the lower monthly payment.
Six Costs To Consider When Comparing Medicare Advantage Plans
- Monthly premium
- The average Medicare Advantage monthly premium is $18.50 in 2024.
- Doctor visit copayment
- Make sure you consider the different copayment amounts for your primary care doctor and specialist doctor.
- Prescription drug copayment
- Your prescription drug copayment depends on which Medicare Advantage plan you select.
- Your deductible
- Your deductible ranges depending on which Medicare Advantage plan you choose.
- Maximum out-of-pocket costs
- In 2024, your maximum out-of-pocket costs with Medicare Advantage are capped at $8,850.
- Additional benefits (vision, hearing, dental or other services)
- Other potential benefits include meal delivery services, telehealth, flex cards and fitness benefits.
Consider how much you’ll likely pay per year for various health care services, then compare that to the premiums you’d pay over the course of the year.Find More Cost Details From Your Medicare Advantage Plan
Evidence of Coverage (EOC) Your insurer will send you an EOC document each fall. It will give you updated information about what your plan covers, your costs and other important information. Annual Notice of Change (ANOC) Your ANOC will alert you to changes in your costs, coverage and services that take effect on Jan. 1 of the coming year. This document also arrives from your insurer in the fall.
How Are Medicare Advantage Plans Priced?
It’s important to look beyond just the monthly premium when shopping for a Medicare Advantage plan. You need to consider your total Medicare costs. These include deductibles, copayments, coinsurance and maximum out-of-pocket costs.
Since Medicare Advantage plans are sold by private insurers, the companies can make several decisions that affect the price of each plan.Business Decisions That Affect Medicare Advantage Plan Pricing
- Which plans a company chooses to offer
- How the company calculates the price and profit margin for premiums and cost-sharing
- Additional benefits that the company offers
Unlike Medigap, which has 10 standardized plans across all companies, there are no standardized Medicare Advantage plans.
You will need to compare Medicare Advantage plans to find the right benefits and prices for your health care needs and personal finances.Did You Know?Medicare does not set the amounts that Medicare Advantage plans can charge for deductibles and services. These are set by the private insurers selling the plans and can change each year on Jan. 1.
Consider Your Potential Out-of-Pocket Costs
In 2023, the maximum out-of-pocket (MOOP) you can spend for a Medicare Advantage plan is $8,850. This amount changes each year. You should also consider your monthly premium, annual deductible, copays and coinsurance.
Starting in 2025, there will be a $2,000 cap on how much Medicare Advantage and Part D beneficiaries can pay out-of-pocket for prescription drugs.
As of Jan. 1, 2023, injectable insulin is capped at $35 per monthly supply for Medicare Advantage beneficiaries.
Getting Help Paying for Medicare Advantage Plans
If you need financial aid to pay for your Medicare Advantage plan, consider a Medicare Special Needs Plan (SNP) plan instead. SNP plans are a type of Medicare Advantage plan for individuals eligible for Medicare and who have specific financial or health care needs.
All SNP plans provide prescription drug coverage, benefits to a specific disease or condition, along with other benefits. There are three main types of SNP plans — a Chronic Condition SNP (C-SNP), Institutional SNP (I-SNP) and Dual Eligible SNP (D-SNP).
Frequently Asked Questions About Medicare Advantage CostsWhat is the average cost of Medicare Advantage?The average premium cost for a Medicare Advantage plan in 2024 is $18.50.Is Medicare Advantage more expensive than Original Medicare?Medicare Advantage is actually less expensive than Original Medicare, according to a 2022 Wakely Consulting Group study.Is Medicare Advantage more expensive than Medigap?No. Medicare Advantage plans typically have more affordable premiums compared to a Medigap plan.How can Medicare Advantage plans cost nothing?Private insurers can offer a Medicare Advantage plan for $0 to balance out other out-of-pocket costs, like your deductibles and copays.What are the out-of-network costs for Medicare Advantage plans?Out-of-network costs are from care received by providers who aren’t covered by your Medicare Advantage plan.
Editor Samantha Connell contributed to this article.Last Modified: October 24, 2023
11 Cited Research Articles
- National Council on Aging. (2023, October 13). What You'll Pay in Out-of-Pocket Medicare Costs in 2024. Retrieved from https://www.ncoa.org/article/what-you-will-pay-in-out-of-pocket-medicare-costs-in-2024
- Centers for U.S. Medicare & Medicaid Services. (2023, October 12). 2024 Medicare Parts A & B Premiums and Deductibles. Retrieved from https://www.cms.gov/newsroom/fact-sheets/2024-medicare-parts-b-premiums-and-deductibles
- U.S. Centers for Medicare & Medicaid Services. (2023, September 26). Medicare Advantage and Medicare Prescription Drug Programs to Remain Stable in 2024. Retrieved from https://www.cms.gov/newsroom/press-releases/medicare-advantage-and-medicare-prescription-drug-programs-remain-stable-2024?wpisrc=nl_health202
- Freed, M. et al. (2022, November 10). Medicare Advantage 2023 Spotlight: First Look. Retrieved from https://www.kff.org/medicare/issue-brief/medicare-advantage-2023-spotlight-first-look/
- U.S. Centers for Medicare & Medicaid Services. (2022, September 29). Biden-Harris Administration Announces Lower Premiums for Medicare Advantage and Prescription Drug Plans in 2023. Retrieved from https://www.cms.gov/newsroom/press-releases/biden-harris-administration-announces-lower-premiums-medicare-advantage-and-prescription-drug-plans
- U.S. Centers for Medicare & Medicaid Services. (2022, September 29). Fact Sheet. Retrieved from https://www.cms.gov/files/document/2023-medicare-advantage-and-part-d-state-state-fact-sheets.pdf
- Humana. (2022, September 8). HMO vs. PPO: Which Is Right for You? Retrieved from https://www.humana.com/medicare/medicare-resources/hmo-vs-ppo
- Humana. (2022, September 1). Is Medicare Advantage Really Free? Monthly Plan Premium Explained. Retrieved from https://www.humana.com/medicare/medicare-resources/is-medicare-advantage-free
- Freed, M. et al. (2022, August 25). Medicare Advantage in 2022: Premiums, Out-of-Pocket Limits, Cost Sharing, Supplemental Benefits, Prior Authorization and Star Ratings. Retrieved from https://www.kff.org/medicare/issue-brief/medicare-advantage-in-2022-premiums-out-of-pocket-limits-cost-sharing-supplemental-benefits-prior-authorization-and-star-ratings/
- U.S. Centers for Medicare & Medicaid Services. (2022). Find a Medicare Plan. Retrieved from https://www.medicare.gov/plan-compare/#/search-results?plan_type=PLAN_TYPE_MAPD&fips=12117&zip=32708&year=2023&lang=en&page=6
- White, J. (2020, January 24). Medigap vs. Medicare Advantage: What’s the Difference? Retrieved from https://www.thestreet.com/personal-finance/medigap-vs-medicare-advantage
- Edited By
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