The Costs of Medicare Advantage Plans and How They Compare to Traditional Medicare

Medicare Advantage Plans (MAPs) are health plans offered by Medicare that let you choose from a variety of options, including private insurance and traditional Medicare. While many people believe that MAPs offer more benefits and options than traditional Medicare, there are some key differences between the two programs that should be taken into account when making a choice.

Medicare Advantage Plans

Medicare Advantage plans are a type of health care plan offered by the government that compete with traditional Medicare. They are divided into two types: Preferred Provider Organization (PPO) and Managed Care Organizations (MCOs).

The costs of Medicare Advantage plans and how they compare to traditional Medicare depend on the plan you choose and your covered benefits. The table below compares the cost of a PPO plan with the cost of a traditional Medicare plan.

Costs Comparison:

Traditional Medicare \ vs. PPO Plan \ \ \ Annual Premium $134 vs. $106
Out-of-Pocket Maximum $6,960 vs. $5,930
Coverage Base 100% vs. 65%
Annual Enrollment Limit 150% of the annual coverage limit vs. 130% Coverage Limit
Length of Coverage Lifetime vs. 3 years

What are the Costs of Medicare Advantage Plans?

Medicare Advantage Plans (MAPs) are a type of Medicare program that offer benefits and services not found in traditional Medicare. However, MAPs do come with costs. For example, some MAPs may have higher premiums than traditional Medicare, and they may have more restrictive eligibility requirements. In addition, some MAPs may have extra benefits or services that are not available to people who are enrolled in traditional Medicare.

To help you understand how different types of MAPs compare in terms of costs, we’ve prepared a table that compares the three most common types of MAPs: Medigap Plans, Part D Drug Plans, and Home Health Care Plans.

Medigap Plans:
Medigap plans are insurance plans that supplement Medicare coverage. They can provide benefits such as prescription drug coverage and dental care. Medigap plans usually have lower premiums than other types of MAPs, but they may have higher out-of-pocket costs.

Part D Drug Plans:
Part D drug plans are drugs plans that cover the cost of prescription drugs for people who are enrolled in Medicare. Part D drug plans usually have lower premiums than other types of MAPs, but they may have higher

How Do Medicare Advantage Plans Compare to Traditional Medicare?

Medicare Advantage plans are offered by private insurers instead of the government-run Medicare program. They offer a variety of benefits, such as more coordinated care and access to specialists, but they also have higher costs than traditional Medicare. In 2015, the average cost of a Medicare Advantage plan was $11,594 per person, compared to $7,992 for traditional Medicare.

The main reasons for these costs are that Medicare Advantage plans have higher premiums and copayments, and they often require patients to pay out-of-pocket for doctor visits and prescription drugs. However, there are some important differences between Medicare Advantage plans and traditional Medicare. First, Medicare Advantage plans often offer more comprehensive coverage than traditional Medicare does. Additionally, many Medicare Advantage plans allow people to remain in their plan even if they switch to another employer or switch to a different type of coverage. Finally, many Medicare Advantage plans have lower out-of-pocket maximums than traditional Medicare does.

Overall, the costs of Medicare Advantage plans are higher than the costs of traditional Medicare, but there are a number of factors that can influence these costs. Overall, it is important to compare the cost of different options before making a decision about which kind of coverage is best


Medicare Advantage plans are growing in popularity, but they come with a cost. In this article, we compare the costs of traditional Medicare and Medicare Advantage plans to help you decide which is best for you. The decision isn’t easy, but by comparing the costs side-by-side it will be easier for you to understand what is at stake and make an informed choice.