Are Medicare Plans Free?
May 21, 2024 | Todd Lewison
When you hear something is free, you may say that it’s too good to be true! In some cases, it is; in others, it’s not. So, when it comes to Medicare plans, the question arises: Are there really free options available? While Medicare Advantage plans aren’t technically free, there are some with a $0 premium. However, it’s important to understand the different coverage options and trade-offs involved in opting for these plans. Keep on reading to find out more about these types of Medicare plans.
Are There Free Medicare Plans?
Medicare Advantage plans are not considered free; however, some are available with a $0 monthly premium. One reason they cannot be claimed to be free is that in order to enroll in one of these plans, you must still have Medicare Parts A and Part B, and most individuals do pay a premium for Medicare Part B.
Medicare Advantage plans (MA/MAPDs) are a popular choice for Medicare coverage among seniors. Medicare Advantage plans are offered by private insurance companies contracted with Medicare. All plans vary in premium, coverage, copays, coinsurance, max-out-of-pocket and more. A $0 Medicare plan typically has higher cost-sharing in the form of copays and coinsurance compared to those with a monthly premium. One way to look at it is you can pay less for the plan upfront but then pay more when you use the coverage and services. On the other hand, if you pay a higher monthly premium, you generally pay a lower amount when you use the plan (i.e., go to the doctor, a specialist, or have surgery).
Find out More: Frequently Asked Questions About Medicare Advantage Plans
How Advantage Plan Premiums Impact Out of Pocket Costs
The way in which Medicare Advantage plan premiums impact out-of-pocket costs can differ from person to person. If you visit the doctor often, you might want to pay a little more in premiums so that each visit costs less. On the other hand, if you only expect to visit the doctor annually, it may be more beneficial for you to save money on premiums each month and pay a higher cost sharing if you have other visits throughout the year. Ultimately, the choice depends on your individual situation.
It’s possible that by selecting a health insurance plan with a lower premium, you may end up paying more out-of-pocket expenses for copays or coinsurance in the case of a medical emergency. With all the unknowns, it can feel like taking a gamble while selecting a plan. The good news is you have the opportunity to change your plan each year during the Annual Election Period (AEP), if you feel like it’s not the best fit. Working with an experienced insurance broker can help you analyze the various plan options and select one that is suitable for your individual health and lifestyle needs.
Where to Find Medicare Help
Determining your Medicare premiums is just one part of the extensive Medicare puzzle. Fortunately, you don’t have to do it alone; the experienced team at Twin City Underwriters helps people like you understand their medicare options and enroll in a plan that meets your unique needs. Contact our team today to learn more about your Medicare plan options.
Twin City Underwriters helps Medicare recipients in Minnesota, Wisconsin, North Dakota, South Dakota, Iowa and Florida find the Medicare plan that meets their unique needs. Attend an online Medicare webinar, in-person Medicare workshop, or schedule a one-on-one meeting with one of our Medicare insurance brokers to get your questions answered!
Do you need help with Medicare, insurance and health plans? Explore your options with Allina Health Aetna, BlueCross BlueShield of Minnesota, Medica, UCare, United HealthCare and more. We work with you to find the best plan for your needs and budget. Contact us today to get started.
