One of the most misunderstood aspects of Medicare Advantage is the cost. With so many ads promoting low-premium plans, it’s easy to assume that Medicare is suddenly low-cost.
But there are additional things to consider. Even if you sign up for a Medicare Advantage plan, you’re still required to pay your Medicare Part B premium. In 2026, that premium is $202.90 per month for most beneficiaries.
Let’s break down what this really means—and why the phrase “low-premium” doesn’t tell the full story.
What Is Medicare Part B—and Why Do You Still Pay?
Medicare Part B covers your outpatient care, including doctor visits, lab work, preventive screenings, durable medical equipment, and more. Whether you enroll in Original Medicare or a Medicare Advantage plan, Part B is a foundational piece of your coverage.
To stay enrolled in Part B, you must pay a monthly premium. That premium goes directly to Medicare—not your Advantage plan provider.
So when you hear the term “low-premium” Advantage plan, it simply means the private insurance company may charge you a low premium for your Advantage Plan in addition to what you already owe for Part B.
Why This Detail Matters
Many people enroll in a Medicare Advantage plan thinking that “lower-premiums” means they’ll have no monthly costs. Then, a few months later, they see the standard Part B premium withdrawn from their Social Security check—and feel blindsided.
It’s not a hidden fee. It’s the baseline cost of Medicare that applies no matter which route you take.
Understanding this upfront can help avoid budget surprises.
What Should You Look At Beyond the Premium?
When reviewing a Medicare Advantage plan, there are several factors to consider beyond the monthly premium:
- The plan’s out-of-pocket maximum
- Copayments or coinsurance for services like hospital stays, specialist visits, and diagnostic tests
- Prescription drug coverage, including formulary tiers and how your medications are covered
- Provider access, including whether your doctors and hospitals are in-network
- Requirements such as referrals or prior authorizations for certain services
Some plans may have lower premiums but different cost-sharing structures. Because costs and coverage can vary by plan and location, it’s important to review how each plan works and what your potential out-of-pocket costs may be when you receive care.
Make Sure the “low-premium” Plan Doesn’t Surprise You
Medicare Advantage plans can offer valuable coverage, but it’s important to understand all aspects of the plan and how it works with Original Medicare.