Medicare Advantage Costs in 2023

While the average cost for your Medicare Advantage premium is $18 in 2023, this isn’t the guaranteed cost for everyone. 99% of Americans have access to a Medicare Advantage plan that includes prescription drug coverage with no premium charge at all 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 cover a reduction for your Part B premium in 2023, according to the Kaiser Family Foundation.

To clarify, your Medicare Advantage plan could cost around $0-$18. Consider the potential costs of your Part B premium, which is $164.90 in 2023, 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.

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.

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.

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.

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.

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.

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.

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.

In 2023, the maximum out-of-pocket (MOOP) you can spend for a Medicare Advantage plan is $8,300. 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.

If you take insulin, there is a new cap on out-of-pocket costs for injectable insulin. Starting on Jan. 1, 2023, injectable insulin is capped at $35 per monthly supply for Medicare Advantage beneficiaries.

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).

Editor Samantha Connell contributed to this article.