Key Takeaways
- You pay a premium on a set schedule whether or not you use any care.
- Many Advantage plans have low or even $0 premiums but heavier cost-sharing.
- Premiums do not count toward your cost-sharing or out-of-pocket maximum.
A premium is the regular monthly fee you pay for your coverage — the same idea as the premiums you already know from car, life or health insurance. You pay it on schedule whether or not you actually use any benefits that month.
Many Medicare Advantage plans advertise low or even $0 premiums, but those usually come with heavier cost-sharing elsewhere. Keep in mind that premiums do not count toward your cost-sharing.