Medicare Part C, also known as Medicare Advantage, is sold and managed by private insurance companies. Some of these companies offer $0 premium plans, but they may have other associated fees.

Medicare Advantage, also called Medicare Part C, is offered by private insurance companies to qualifying individuals who want more coverage than what’s included in Original Medicare (parts A and B).

Many Advantage plans cover the same services as Original Medicare, plus additional medical needs, such as:

If you’ve recently been shopping around for a Medicare Advantage plan, you may have noticed that some of these plans are advertised as “free.” Certain Advantage plans are called free because they offer a $0 monthly premium to be enrolled in the plan. This makes them an attractive offer for people looking to save money on monthly Medicare costs.

This article will explore what these free Medicare Advantage plans cover, what additional costs you might encounter, and who’s eligible for them.

Free Medicare Advantage plans are Medicare Part C plans that offer a $0 yearly premium. Compared with other Medicare plans, these zero-premium Medicare Advantage plans do not charge a yearly amount to enroll in the plan.

There’s generally no difference in coverage between a free plan and a paid plan. Regardless of cost, most Medicare Part C plans offer parts A and B, prescription drug coverage, and other additional coverage.

So you may wonder why companies offer these zero-premium Medicare plans.

When a company contracts with Medicare, it’s given a set amount of money to cover parts A and B insurance. If the company can save money elsewhere, such as by using in-network doctors and facilities, it may be able to pass those extra savings along to members. This can result in a free monthly premium.

These “free” Medicare Advantage plans are also a great way for companies to advertise attractive savings to potential beneficiaries.

Even though zero-premium Medicare Advantage plans are marketed as free, you’ll still have to pay some out-of-pocket costs for coverage, such as:

  • Medicare Advantage plan monthly premium: If a Medicare Advantage plan is free, you will not have to pay a monthly premium to be enrolled.
  • Part B monthly premium: Most free Medicare Advantage plans still charge a separate monthly Part B premium. Some plans cover this fee, but others may not. In 2024, the Part B monthly premium is $174.70 per month for most people.
  • Deductibles: Two types of yearly deductibles are associated with most Medicare Advantage plans. The plan itself may have a yearly deductible. This is the out-of-pocket amount you pay before your insurance pays out. The plan may also charge you a prescription drug deductible as well.
  • Coinsurance/copayments: Most Medicare Advantage plans charge copayments. A copayment is the out-of-pocket fee you pay every time you receive medical services. Some plans may also charge a coinsurance, which is the percentage of all medical costs you’re responsible for paying.

Medicare Advantage plans can also differ in costs based on their structures. For example, Paid Provider Organization (PPO) plans charge different copayment amounts based on whether your provider is in-network or out-of-network.

Plus, these costs may vary from year to year. For example, Private Fee-For-Service (PFFS) plans have experienced a small percentage increase in costs every year for the last few years.

There are no qualifications for free Medicare Advantage plans. Many Advantage plans offer a free monthly premium as part of their healthcare plan offerings.

When searching for a Medicare Advantage plan, you can usually sort your options by “lowest monthly premium” to see zero-premium Medicare Advantage plans in your area.

Another way to keep track of your Medicare Advantage costs is to pay attention to the evidence of coverage and annual notice of change letters that your plan sends you each year. This will help you stay on top of any price changes or fee increases.

Resources to help cover Medicare costs

One of the most important ways to manage your Medicare costs is to use the resources available to help cover or lower your costs. These resources include:

  • Medicaid: This program has helped cover medical costs for more than 88 million people who have a low income or don’t have the resources to pay for medical expenses.
  • Medicare Savings Programs: These programs can help low income beneficiaries pay Medicare Advantage premiums, deductibles, copayments, and coinsurance.
  • Supplemental Social Security: This benefit offers a monthly payment to people who are disabled, blind, or over age 65 years. This payment can help cover Medicare costs.
  • Additional resources: Other programs may offer help for people who live in certain U.S. territories or have high prescription drug costs.

Free Medicare Advantage plans are private Medicare insurance plans that offer a $0 monthly premium. While these plans are advertised as free, you’ll still have to pay the standard out-of-pocket costs for other premiums, deductibles, and copayments.

If you qualify for Medicare and are enrolled in parts A and B, you can search for zero-premium Medicare Advantage plans in your area.