Which statement about Medicare Advantage plan premiums is true?

Which statement about Medicare Advantage plan premiums is true?

• A. Premiums can be as low as near zero with CMS support
• B. Plan premiums are always zero
• C. There are never any out-of-pocket costs
• D. Premiums are always higher than Part B

Answer: (A)

Medicare Advantage plan costs can be very low because private plans compete and many receive CMS subsidies that help keep premiums down. That means it’s possible to enroll in a plan with a monthly premium that is near zero, or even $0, depending on the area and the specific plan. This is why the statement about premiums being potentially near zero with CMS support is the best description. Keep in mind that plan premiums are not guaranteed to be zero—some plans do charge a positive premium beyond the Part B premium. And even with a minimal plan premium, there are still costs to consider, such as copays, deductibles, and the plan’s maximum out-of-pocket limit. Also, the plan premium isn’t always higher than Part B; in many cases the plan premium is zero or lower than some Part B scenarios, depending on the plan and region. The key takeaway is that Medicare Advantage premiums vary by plan and region, and CMS subsidies can help some plans keep those premiums very low. You still pay the Part B premium to Medicare, and you may have additional costs depending on the plan.

Medicare Advantage plan costs can be very low because private plans compete and many receive CMS subsidies that help keep premiums down. That means it’s possible to enroll in a plan with a monthly premium that is near zero, or even $0, depending on the area and the specific plan. This is why the statement about premiums being potentially near zero with CMS support is the best description.

Keep in mind that plan premiums are not guaranteed to be zero—some plans do charge a positive premium beyond the Part B premium. And even with a minimal plan premium, there are still costs to consider, such as copays, deductibles, and the plan’s maximum out-of-pocket limit. Also, the plan premium isn’t always higher than Part B; in many cases the plan premium is zero or lower than some Part B scenarios, depending on the plan and region.

The key takeaway is that Medicare Advantage premiums vary by plan and region, and CMS subsidies can help some plans keep those premiums very low. You still pay the Part B premium to Medicare, and you may have additional costs depending on the plan.