The average cost for a Medicare Advantage plan is $14 per month in 2026, including plans that charge a $0 premium, according to the Centers for Medicare & Medicaid Services (CMS). Total out-of-pocket costs could be much higher, depending on your health care needs.
What is Medicare Advantage?
Medicare Advantage, also known as Medicare Part C, is a bundled alternative to Original Medicare that's offered by private insurance companies. It includes Medicare Part A and Part B, usually prescription drug coverage (Medicare Part D) and often additional benefits, which may include some coverage for dental and hearing. About 51% of people eligible for Medicare are expected to sign up for Medicare Advantage plans.
» MORE: Best Medicare Advantage plans
Compare Medicare Advantage plans
| Insurance company | NerdWallet rating | States available | Members in high-rated plans | Member experience |
|---|---|---|---|---|
| 48 states and Washington, D.C. | Medium (50% to 84%) | 3.74 (Average) | ||
| 46 states and Washington, D.C. | Low (49% or less) | 3.82 (Above average) | ||
| 43 states and Washington, D.C. | Medium (50% to 84%) | 3.89 (Above average) | ||
| 29 states and Washington, D.C. | Medium (50% to 84%) | 3.96 (Above average) |
What are Medicare Advantage costs?
If you have a Medicare Advantage plan, you may be responsible for paying these costs:
Medicare Advantage plans often have no premiums — 69% of 2026 Medicare Advantage plans have a $0 premium — but it’s not an absolute. For those in plans that charge a premium, the average cost is about $63 per month in 2026. Monthly premiums range from $0 to $366.
In addition to the Medicare Advantage plan premium, beneficiaries are responsible for their Medicare Part B premium, which is $202.90 per month in 2026. Some Medicare Advantage plans cover some or all of your Part B premium.
Prescription drug costs
For the vast majority of people with Medicare Advantage, prescription drug coverage is bundled with the plan. If you’re in a Medicare Advantage plan that charges no premium and includes prescription drug coverage, that means you pay no premium for Medicare Part D coverage. If your plan includes prescription drug coverage and charges a premium, the drug benefits are included in that cost.
Coinsurance, copayments and deductibles
Depending on your Medicare Advantage plan, you’ll typically have to pay a deductible, coinsurance and/or copayments when you seek medical care. Because many plans have no premium, it’s helpful to understand the plan’s cost structure, especially if you have a chronic condition.
- Deductible: The amount you’ll pay out of pocket before your Medicare Advantage plan starts covering eligible services.
- Coinsurance: A percentage of your medical costs — 20% of services, for instance — you pay out of pocket, generally after you hit your deductible.
- Copayment: A flat fee you pay for a specific service, such as a doctor’s visit or emergency room trip.
These payments are out-of-pocket costs, and Medicare Advantage plans are required to have a limit on what you can pay out of pocket each plan year. That limit can’t be higher than $9,250 in 2026.
Prescription drug benefits have separate out-of-pocket costs. Medicare out-of-pocket drug spending is capped at $2,100 in 2026.
Shopping for Medicare Advantage plans? We have you covered.
| MEDICARE ADVANTAGE is an alternative to traditional Medicare offered by private health insurers. Compare options from our Medicare Advantage roundup. | |
| Best major company | Best for size of network |
| Best government ratings | Best for low-cost plan availability |
Costs for additional benefits
Medicare Advantage plans typically offer access to extra benefits that aren’t available under Original Medicare. Some plans charge an additional fee for extra coverage.
For instance, members of some Kaiser Permanente Medicare Advantage plans have the option to buy the company’s Advantage Plus benefits package, which offers extra dental, hearing and vision benefits. And some AARP Medicare Advantage plans offer optional additional dental benefits with a separate premium. Most Medicare Advantage plans, however, include extra benefits in the cost of the plan.
Medicare Advantage by state
Medicare Advantage plan availability varies by location. Click on a state on the map below to see the best Medicare Advantage plans available in that state.
Frequently Asked Questions
What is the Medicare Advantage premium?
Medicare Advantage premiums vary by plan. Including plans with $0 premiums, the average premium is $14 per month in 2026, according to data from the Centers for Medicare & Medicaid Services.
What is the biggest disadvantage of Medicare Advantage?
One of the disadvantages of a Medicare Advantage plan is that members are generally limited to the plan’s network of medical providers and hospitals when seeking medical care. If you want to get care from an out-of-network provider, your plan costs will usually be higher, or the plan may not cover it.
Is Medicare Advantage more expensive than Medicare?
Out-of-pocket costs for Medicare Advantage plans tend to be lower than Original Medicare, but you have more choices for medical providers under Original Medicare. You also have the option, with Original Medicare, to buy a Medigap plan that covers many of your out-of-pocket costs if you need care. The best choice for you will depend on your budget and health care needs.
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- 1. Centers for Medicare & Medicaid Services. Medicare Advantage and Medicare Prescription Drug Programs Expected to Remain Stable in 2026. Accessed Nov 20, 2024.
- 2. Centers for Medicare & Medicaid Services. CY2026 Landscape (202511) (ZIP). Accessed Nov 20, 2024.
- 3. Centers for Medicare & Medicaid Services. Understanding Medicare Advantage Plans. Accessed Nov 20, 2024.
