How Medicare Advantage Plans Can Have $0 Premium

One of the questions I am asked most frequently is “how can a Medicare Advantage plan have No Premium”  This is a very valid question and I am writing today to try to shed some light on this question.

The simple answer is Government subsidies. When you sign up for a Medicare Advantage plan the Federal Government pays the Insurance company a certain amount or “Premium” each month to handle all of your medical claims. The amount of money is determined by many factors such as the cost of Medical care in your County and other factors.

As you know the government takes money from your Social Security check each month for your Medicare Part B premium. If you were to decide to stick with Original Medicare ONLY the government would pay a portion of your bills and you would be responsible to pay the rest.

The problem with Medicare has always been the “GAPS” in coverage and the co-insurance. Without going into too much detail here’s some of the expeses you will encounter with Original Medicare ONLY: Continue reading

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