What's the Cost of a Medicare Advantage Plan?
A Medicare Advantage plan with prescription drug coverage costs $27 per month, on average.
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Almost 6 of every 10 plans have no monthly cost. The amount you pay for a Medicare Advantage plan depends on things like the amount of coverage you get and the ability to see doctors outside the network.
How much do Medicare Advantage plans cost?
Medicare Advantage plans with prescription drug coverage cost an average of $27 per month in 2026, down from $28 per month in 2025.
The amount you pay for a Medicare Advantage plan depends on the type of plan you buy. More restrictive plans like
HMOs
tend to cost less than plans that give you more freedom like
PPOs.
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Many Medicare Advantage plans have a $0 monthly rate. You'll still have to cover some costs when you go to the doctor with these plans. For example, Medicare Advantage plans typically require you to pay a certain amount of money before coverage starts, called a deductible.
Many Medicare Advantage plans have a separate deductible for prescription drugs. The average drug deductible for 2026 Medicare Advantage plans is $443.
Average monthly cost of Medicare Advantage by plan type
With a Medicare Advantage plan, you're also responsible for paying a part of your bill when you go to the hospital. These costs include:
- Copays: A flat fee you pay when you get care or fill a prescription. For example, you may pay a $20 copay when you see the doctor for your annual checkup.
- Coinsurance: A percentage of your bill that you pay. For example, 20% coinsurance on a procedure that costs $500 would cost you $100.
Copays and coinsurance amounts will be different depending on your plan. Policies with higher monthly rates usually let you pay less when you see the doctor.
In addition, all plans cap the amount you'll pay for care in a single year, called an out-of-pocket maximum. For 2026, the average Medicare Advantage out-of-pocket max is $6,367 for in-network care.
Medicare Advantage plan cost by company
Devoted Health has the cheapest average rates of any major Medicare Advantage company, at $1 per month.
HealthSpring (formerly Cigna), Wellcare and Aetna also have affordable plans, ranging from $4 to $19 per month, on average. All the largest Medicare Advantage companies offer plans with no monthly cost.
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When shopping around, it's important to consider factors other than price. For example, Blue Cross Blue Shield (BCBS) has high average rates, but BCBS customers get access to the largest network of doctors in the country. It might make sense to pay more for a Blue Cross plan if you want more freedom in choosing your doctor.
Kaiser Permanente has the most expensive average rates among the major Medicare Advantage companies. However, Kaiser has a strong reputation for customer satisfaction. Consider a Medicare Advantage plan from Kaiser Permanente if you value a smooth claim-filing process over getting the cheapest rate.
Monthly Medicare Advantage cost by company
Company | Average monthly cost | |
|---|---|---|
| Devoted Health | $1 |
| HealthSpring | $4 |
| Wellcare | $9 |
| Aetna | $19 |
| Humana | $22 |
Monthly rates are for Medicare Advantage plans with prescription drug coverage. HealthSpring is the new name for Cigna Medicare.
Cigna sold its Medicare Advantage business to a Blue Cross Blue Shield company called Health Care Service Corp. (HCSC). The company has rebranded and is now calling itself "HealthSpring."
Average cost by state
The average cost of a Medicare Advantage plan depends on where you live.
Vermont has the cheapest Medicare Advantage plans. Every plan sold in Vermont on Medicare.gov has a $0 rate. South Dakotans pay the highest average rates for Medicare Advantage, at $115 per month. Medicare Advantage plans aren't sold in Alaska.
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Zero-dollar plans are available in every state (except Alaska, where you can't buy Medicare Advantage plans). Even if you live in a state with a high average rate, you still have access to low-cost Medicare Advantage plans.
Factors like the number and type of plans available, the cost of care and the companies selling plans can all influence the average cost of a Medicare Advantage plan in your state.
Medicare Advantage cost by state
State | Monthly cost |
|---|---|
| Alabama | $23 |
| Arizona | $22 |
| Arkansas | $12 |
| California | $15 |
| Colorado | $18 |
Monthly rates are for Medicare Advantage plans with prescription drug coverage.
Total monthly Medicare Advantage costs
On average, Medicare Advantage costs about $230 per month, on average, when you add in your cost for Medicare Part B.
Even when you sign up for Medicare Advantage, you'll still have to pay for Original Medicare (Parts A and B).
Medicare Advantage plans come from private insurance companies, but they're still part of the government’s Medicare program. So while the cost of Medicare Advantage is determined by the plan you choose, the costs for Medicare Parts A and B are set by the government.
Typical monthly costs with Medicare Advantage
-
Medicare Part A (hospitalization): $0
About 99% of Medicare enrollees don't pay anything for Medicare Part A. That's because your taxes pay for this program. While you (or your spouse) were working, you paid a Medicare tax on your income, and as a result, you likely won't pay for Medicare Part A when you're retired.
-
Medicare Part B (medical care): $202.90 per month in 2026
The government sets the cost of Medicare Part B each year. Most people pay this monthly cost directly from their Social Security benefits. The government charges an extra fee, called IRMAA, if you earn more than $109,000 per year.
-
Medicare Advantage (bundled coverage): $27 per month, on average, in 2026
What you pay for a Medicare Advantage plan covers some of the plan's extra benefits, such as vision, dental and prescription drug benefits. Keep in mind that the government also gives companies extra money to spend on these benefits. That enables companies to offer plans with no monthly rates. There are also some plans that have a "giveback" program. The plans cost $0 per month and lower your monthly cost for Medicare Part B.
How much does the government pay for Medicare Advantage plans?
What you pay for a Medicare Advantage plan is only part of the plan's cost. Medicare also pays insurance companies a flat rate for each Medicare enrollee, typically around or over $1,000 per month. The actual payment amount depends on location, plan benefits and overall community health.
How to get the best deal with a Medicare Advantage plan
How you can save
-
Choose a plan that matches your medical needs
- Get a plan that includes extra benefits like prescription drugs, dental and vision
- If you qualify, take advantage of low-income programs, Medicaid or Special Needs Plans
What to avoid if you want to save money
-
Going outside the network for medical care
- Getting penalties for signing up late
- Having a plan with a high out-of-pocket maximum when you need expensive medical care
Frequently asked questions
What is the average monthly cost of Medicare Advantage plans?
In 2026, Medicare Advantage plans cost an average of $27 per month. However, about 60% of plans have no monthly rate. And keep in mind that you still have to pay for Part B, which is $202.90 per month for most people.
Is Medicare Advantage free for seniors?
Medicare Advantage isn't automatically free for seniors, but many plans have a $0 monthly rate. However, you still have to pay $202.90 per month for your Part B coverage. And you'll also still have to pay for some of your medical bills in the form of your deductible, copays and coinsurance.
Does Medicare Advantage pay 100 percent?
No, Medicare Advantage plans don't pay for 100% of your medical bills. You have to pay your deductible before coverage starts, and then you'll split your bills with your insurance company. This is called "coinsurance." However, Medicare Advantage plans do put a limit on your yearly healthcare spending. This is called the "out-of-pocket maximum," and once you hit it, your medical care is free as long as it's covered.
Methodology and sources
Medicare Advantage costs for 2026 are from the Centers for Medicare & Medicaid Services (CMS) public use files. Average rates are for plans that include prescription drug coverage. Companies are grouped by consumer brand and include subsidiaries.
This analysis excludes employer-sponsored plans, health care prepayment plans (HCPPs), Medicare medical savings account (MSA) plans, Program of All-Inclusive Care for the Elderly (PACE) plans, sanctioned plans and Special Needs Plans.
Insurance Writer
Cate Deventer is a ValuePenguin writer who specializes in health insurance, Medicare, auto and home insurance. She's been a licensed insurance agent since 2011.
She started her insurance career working as a customer service agent for State Farm. She later moved to an independent agency, where she worked with several insurance companies and hundreds of clients. She quoted policies, filed claims and answered insurance questions. In 2021, she pivoted her career and began writing about insurance for Bankrate. She moved to ValuePenguin in 2023 and began writing about health insurance and Medicare.
Cate has a passion for helping readers choose insurance to fit their needs. She enjoys knowing that her research and knowledge help people choose insurance products that make a positive difference in their lives.
How insurance helped Cate
Cate used her health insurance knowledge to navigate a surgery in 2023. Understanding how her policy worked let her focus on recovery instead of worrying about bills.
Expertise
- Health insurance
- Medicare & Medicaid
- Auto insurance
- Home insurance
- Life insurance
Credentials
- Licensed Life, Accident & Health Insurance Agent
- Licensed Property & Casualty Insurance Agent
Referenced by
- CBS
- NBC
- Wall Street Journal
Education
- BA, Theatre, Purdue University
- BA, English, Indiana University
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