The average monthly premium for Medicare Advantage in 2024 is $18.50, along with the Part B premium of $174.70. However, premiums vary depending on the level of coverage, the plan provider, and where people live.
Medicare Advantage, or Medicare Part C, is a bundled alternative to Original Medicare. Advantage plans are available from private insurers who contract with Medicare.
Advantage plans include parts A and B and usually Part D, which covers prescription drugs. Premiums for Advantage plans vary widely depending on several factors. When calculating the expense, a person must factor in deductibles and copayments.
This article explains the cost of Medicare Advantage plans and how they compare with other plans.
A person enrolled in Medicare Advantage must pay Medicare Part B monthly premiums in addition to premiums for their Advantage plan.
Part B monthly premiums in 2024 are $174.70, although this amount may vary with income.
For instance, some individuals with Social Security benefits may pay a little less via the Medical Savings Program, while some Medicare Advantage plans pay all or part of Part B premiums.
The average premium for a Medicare Advantage plan in 2024 is $18.50 per month. Some premiums cost $0, while others cost $200 or more.
The table below shows a breakdown of Medicare Advantage costs.
| Medicare Advantage (MA) premium | • varies from $0 to $200+ • average monthly premium for 2024 is $18.50 |
|---|---|
| MA deductible | • often no MA deductible • must pay Part B monthly deductible of $174.70 • often pay Part D (prescription drug) monthly deductible of $55.50 (average) |
| Copayments and coinsurance | • varies depending on plan and the services people use • maximum out-of-pocket costs of $8,850 |
The cost of Advantage plans includes monthly premiums, deductibles, and cost-sharing in the form of copayments or coinsurance.
Glossary of Medicare terms
We may use a few terms in this article that can be helpful to understand when selecting the best insurance plan:
- Out-of-pocket costs: An out-of-pocket cost is the amount a person must pay for medical care when Medicare does not pay the total cost or offer coverage. These costs can include deductibles, coinsurance, copayments, and premiums.
- Deductible: This is an annual amount a person must spend out of pocket within a certain period before an insurer starts to fund their treatments.
- Coinsurance: This is the percentage of treatment costs that a person must self-fund. For Medicare Part B, this is 20%.
- Copayment: This is a fixed dollar amount a person with insurance pays when receiving certain treatments. For Medicare, this usually applies to prescription drugs.
These amounts vary with a person’s geographical location and the plan. Other factors that affect costs include:
- the scope and frequency of healthcare services a person needs
- whether a person’s plan offers extra benefits that involve higher premiums
- whether a person goes to a healthcare professional that accepts Medicare
- whether a person goes to an in-network or out-of-network provider
People can use this Medicare tool to find plans available in their area. Each plan provides details on coverage, copayments, and deductibles.
Medicare Advantage plan providers impose a yearly cost cap, meaning people do not have to pay for expenses that exceed the cap.
In 2024, the cap for out-of-pocket costs in Medicare Advantage plans is $8,850. This amount is the limit for plans that do not include prescription drug coverage.
However, this is the upper limit, and many plans have lower caps.
Medicare has a tool that allows people to compare the yearly cost of Original Medicare with that of Medicare Advantage plans.
When using the tool, people select either a low, medium, or high premium Advantage plan. Regardless of their premium, the estimated yearly cost is lower with Medicare Advantage than with Original Medicare.
The cost comparison tool also allows people to check whether they want to include Part D, which is prescription drug coverage, and Medigap. The latter refers to supplemental insurance that covers costs that Medicare does not.
If a person adds these plans, the cost of Original Medicare increases, making the cost difference between Medicare Advantage and Original Medicare greater.
For people receiving Social Security retirement benefits, Medicare Part B premiums will come from their monthly check.
Those who do not receive benefits may pay their premiums every 3 months by check, credit card, or automatic debit from a checking account.
An individual pays their Advantage plan premium to the private company that provides it.
Payment methods vary among providers, but they often include check, credit card, and automatic debit.
Not everyone can afford to pay Medicare premiums, including those for Medicare Advantage.
People with a limited income may receive help with payments if they qualify for Medicare Savings Programs (MSPs) or Medicaid.
Medicare Savings Programs
A person may apply for MSPs if they have or are eligible for Medicare Part A.
They must have an income below a set threshold as well as limited resources in the form of stocks, bonds, and money in a bank account.
The table below shows the four kinds of MSPs, the monthly income limits to become eligible for them, and the resource limits.
| Medicare savings program | Monthly income limit to be eligible | Resource limit | What it pays for |
|---|---|---|---|
| Qualified Medicare Beneficiary (QMB) Program | • $1,275 individual • $1,724 married couple | • $9,430 individual • $14,130 married couple | • parts A and B premiums, copayments, coinsurance, and deductibles • extra help paying for prescription drugs |
| Specified Low-Income Medicare Beneficiary (SLMB) Program | • $1,526 individual • $2,064 married couple | • $9,430 individual • $14,130 married couple | • Part B for people with parts A and B • extra help paying for prescription drugs |
| Qualifying Individual (QI) Program | • $1,715 individual • $2,320 married couple | • $9,430 individual • $14,130 married couple | • Part B for people with parts A and B • extra help paying for prescription drugs |
| Qualified Disabled and Working Individuals Program | • $5,105 individual • $6,899 married couple | • $4,000 individual • $6,000 married couple | • helps a working person with a disability pay for Part A premiums |
Medicare may change the costs for each plan annually.
Learn more about Medicare for people with disabilities.
Medicaid
Medicaid is an alternative program that provides help with healthcare costs. Some states call the program Medi-Cal or Medical Assistance.
Medicaid is a joint federal and state program for people with a low income and limited resources.
It may cover services that Medicare does not fully cover, such as personal care, community services, and transportation to healthcare facilities.
States vary in their income and resource requirements for enrollment in Medicaid.
Learn about the differences between Medicare and Medicaid.
Medicare resources
For more resources to help guide you through the complex world of medical insurance, visit our Medicare hub.
Many factors can influence the cost of Medicare Advantage plans, including the level of coverage a person needs and the benefits they wish to include.
In 2024, people with Medicare Advantage pay the Part B premium of $174.70 and an average Medicare Advantage plan premium of $18.50.
Medicare Advantage plans put a cap on annual costs, which is a benefit that Medicare parts A and B do not offer.
Medicare offers various tools that allow people to compare Medicare Original with Medicare Advantage plans.