Medicare Advantage, also called Medicare Part C, has become a popular choice for seniors looking to buy coverage. About 32.8 million people (54% of Medicare beneficiaries) have a Medicare Advantage plan, according to 2025 data from KFF.
Medicare Advantage costs vary based on multiple factors and most plans actually don’t have premiums. The plans may offer additional benefits beyond Original Medicare, but whether those added perks are worth it depends on your budget and what you want from your Medicare plan.
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Coverage
Helps pay the 20% that Original Medicare doesn’t cover
Coinsurance
Pays 100% of Part A and Part B coinsurance
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Available in all 50 states
Helps pay the 20% that Original Medicare doesn’t cover
Pays 100% of Part A and Part B coinsurance
Available in all 50 states
What Is Medicare Advantage?
Private health insurance companies offer Medicare Advantage plans. Medicare Advantage offers all the benefits found in Original Medicare (Parts A and B), such as hospitalizations, home health, hospice, skilled nursing, outpatient care, including physician visits, preventive care and medical equipment.
Medicare Advantage plans can also provide expanded benefits not found in Original Medicare, like prescription drugs, dental, vision and hearing care.
Though coverage can vary by Medicare Advantage plan, nearly all Part C plans offer prescription drugs, vision, dental and hearing coverage, as well as fitness benefits, according to KFF. Other expanded coverage you may find in a Medicare Advantage plan includes benefits to help pay for over-the-counter drugs, transportation, meals, bathroom safety devices and in-home support services.
Expert-recommended Medicare Advantage Providers
How Much Does Medicare Advantage Cost?
Our research found that Part C monthly premiums ran the gamut from $0 to $200, and KFF estimates that the average premium is $13 per month.
More than three-quarters of Medicare beneficiaries with plans that have prescription drug coverage didn’t pay a premium in 2025, according to KFF. If a Medicare Advantage plan has a premium, you pay a monthly premium to the insurance company.
Medicare Part C costs vary depending on multiple factors, including:
- Coverage and benefits
- Insurance company
- Location
Costs can fluctuate each year, so it’s a good idea to compare plans in your area annually.
Whether your Plan C plan requires a premium or not, you pay a monthly Part B premium that Medicare beneficiaries must pay. In 2025, the Part B monthly premium is $185-$629, depending on your income. Some plans offer a Part B premium reduction as part of their offerings to help offset Part B costs. Part A usually has no premiums unless you didn’t pay Medicare taxes for at least 40 quarters.
If you have a high income, you may also need to pay an Income-Related Monthly Adjustment Amount. IRMAA surcharges can add to your Part B costs each month if your gross income is above $106,000 for single tax filers and $212,000 for those with joint tax returns.
Here’s a look at examples of Medicare Part C plans available to Medicare beneficiaries located in ZIP code 60629 in Chicago and their associated costs.
2025 Medicare Part C Costs for ZIP Code 60629 (Chicago)
| Plan | Monthly premium | Annual deductible | Drug deductible | Maximum in-network out-of-pocket costs |
|---|---|---|---|---|
| Humana USAA Honor Giveback H5216-258-0 (PPO) | $0 | $100 | Plan doesn’t cover prescription drugs | $5,500 |
| AARP Medicare Advantage IL-C (HMO-POS) | $0 | $0 | $340 | $2,900 |
| Essence Advantage Choice (PPO) | $0 | $0 | $295 | $4,150 |
| Aetna Medicare Choice (PPO) | $0 | $0 | $590 | $4,750 |
| Blue Cross Medicare Advantage Secure (PPO) | $0 | $0 | $0 | $3,500 |
| Cigna Preferred Medicare (HMO) | $0 | $0 | $0 | $2,350 |
| Humana Gold Plus H1468-013 (HMO) (PFFS) | $0 | $0 | $0 | $2,150 |
| Blue Cross Medicare Advantage Protect (PPO) | $0 | $0 | Plan doesn’t cover prescription drugs | $6,750 |
Related: Medicare Advantage Plans By State
What Out-of-Pocket Costs Do You Pay?
Premiums aren’t the only cost in Medicare Advantage plans. You also pay out-of-pocket costs when you need care. Here are out-of-pocket expenses you may experience in a Part C plan:
- Copay: A copay is what you pay at the time of service, such as at a doctor’s appointment.
- Deductible: A deductible is the amount you have to pay before the plan begins paying for care.
- Coinsurance: Coinsurance is the percentage you pay for care after reaching your deductible. The health plan picks up the rest of the bill.
- Out-of-pocket maximum: Medicare Advantage plans have out-of-pocket maximums, which is the most you’ll pay for in-network healthcare services in a year. Once you reach your out-of-pocket maximum, the plan picks up the rest of the costs for the year.
How To Compare Medicare Advantage Plans
Medicare beneficiaries typically have multiple Medicare Advantage options in their area. KFF estimates that 32% of beneficiaries have more than 50 Medicare Advantage plans offered in their area, and the beneficiary has 42 options.
But how do you compare Medicare Advantage plans? You first determine what your situation requires. Think about these items while comparing plans so you’re able to pick one that best suits your needs.
Medicare Advantage Costs Frequently Asked Questions (FAQs)
Does Medicare Advantage pay 100%?
Private health insurance plans that offer Medicare Advantage typically don’t pay 100% of healthcare costs unless you reach your plan’s annual out-of-pocket maximum.
Before you reach your max, you typically have to pay the plan’s deductible and coinsurance.
Can I drop my Medicare Advantage plan and go back to Original Medicare?
Yes, you can switch from Medicare Advantage to Original Medicare during the annual enrollment period or the Medicare Advantage open enrollment period. The annual enrollment period runs from October 15 to December 7, and the Medicare Advantage open enrollment period is from January 1 to March 31.
The only other time that you can switch Medicare plans is if you have a qualifying life event that triggers a two-month special enrollment period. Those life events include if you move out of the plan’s service area, the company stops serving your area, the plan cuts its provider network significantly or consistently receives low Medicare star ratings.
What are potential negatives about Medicare Advantage?
Though Medicare Advantage may offer more coverage than Original Medicare, two potential drawbacks include:
- You typically need to go to in-network providers. Medicare Advantage plans have provider networks, which means not all doctors who accept Medicare may take your Medicare Advantage coverage. Depending on the plan, you either have to pay higher out-of-network costs when you get out-of-network care or the plan won’t cover out-of-network care at all.
- Medicare Advantage is more restrictive than Original Medicare and you may need primary care referrals to see specialists and preauthorizations from the company to receive some types of care.
