Medicare Part C: Medicare Advantage

Medicare Advantage (MA), also known as Part C, is an alternative way to receive Medicare benefits through private insurance companies approved by Medicare. These plans combine Part A and Part B coverage, and most include Part D prescription drug coverage (MA-PD plans).

Medicare Advantage Overview

What is Medicare Advantage?

FeatureDescription
AdministrationPrivate insurance companies
ApprovalMust be approved by CMS
CoverageMust cover everything Original Medicare covers
Additional benefitsOften includes vision, dental, hearing, fitness
Out-of-pocket maximumRequired annual limit on spending

Medicare Advantage vs. Original Medicare

FactorOriginal MedicareMedicare Advantage
AdministrationFederal governmentPrivate insurers
Provider choiceAny Medicare providerUsually network-based
ReferralsNot requiredMay be required (HMO)
Out-of-pocket maxNoneRequired
Prescription drugsSeparate Part D neededUsually included
Additional benefitsNot includedOften included

Key Point: To enroll in a Medicare Advantage plan, you must have BOTH Medicare Part A AND Part B and continue paying your Part B premium.

Types of Medicare Advantage Plans

Health Maintenance Organization (HMO)

FeatureDetails
NetworkMust use plan's network providers
Primary care physicianUsually required
ReferralsGenerally required for specialists
Out-of-network coverageUsually none except emergencies
CostTypically lower premiums and copays

Preferred Provider Organization (PPO)

FeatureDetails
NetworkHas network but allows out-of-network
Primary care physicianNot required
ReferralsNot required for specialists
Out-of-network coverageCovered at higher cost
CostHigher premiums than HMO

Other MA Plan Types

Plan TypeDescription
Private Fee-for-Service (PFFS)Plan determines payment to providers
Special Needs Plans (SNP)For specific populations (dual-eligible, chronic conditions, institutional)
HMO Point-of-Service (HMO-POS)HMO with some out-of-network coverage
Regional PPOPPO covering entire region

2025 Medicare Advantage Costs

Average MA Plan Costs

Cost Type2025 Average
MA-PD premium (in addition to Part B)$13.32/month
MA plans with $0 premium76% of enrollees
HMO average premium$11/month
Local PPO average premium$15/month
Regional PPO average premium$75/month

Maximum Out-of-Pocket Limits

Coverage Type2025 Maximum
In-network onlyVaries by plan
In-network + out-of-networkHigher limit
Required by MedicareYes (no limit in Original Medicare)

Exam Tip: The out-of-pocket maximum is a key advantage of MA plans. Original Medicare has NO out-of-pocket limit—you pay 20% coinsurance indefinitely.

Additional Benefits in MA Plans

Commonly Included Benefits

BenefitOriginal MedicareMany MA Plans
Routine dentalNot coveredOften included
Routine visionNot coveredOften included
Hearing aidsNot coveredOften included
Fitness programsNot coveredOften included (SilverSneakers)
TransportationNot coveredSometimes included
Over-the-counter allowanceNot coveredSometimes included

Mental Health Improvements in 2025

ChangeDescription
Expanded providersMarriage/family therapists and mental health counselors now covered
Intensive outpatientNew program bridging outpatient and hospital care
Network requirementsBehavioral health network expansion required

Enrollment and Eligibility

Eligibility Requirements

RequirementDetails
Part A enrollmentMust have Part A
Part B enrollmentMust have Part B
Continue Part B premiumStill pay $185.00/month (or IRMAA amount)
Service areaMust live in plan's service area
No ESRD (with exceptions)Can enroll if develop ESRD while enrolled

Enrollment Periods

PeriodDatesChanges Allowed
Annual Enrollment Period (AEP)Oct 15 - Dec 7Switch to/from MA, change MA plans
Medicare Advantage Open Enrollment (MA OEP)Jan 1 - Mar 31Switch MA plans or return to Original Medicare
Initial Enrollment Period (IEP)7 months around 65th birthdayInitial enrollment in MA
Special Enrollment Period (SEP)VariesQualifying life events

Disenrollment

ReasonOptions
Move out of service areaChange plans or return to Original Medicare
Plan leaves MedicareAutomatic enrollment options provided
DissatisfactionSwitch during AEP or MA OEP
Plan doesn't meet standardsMay have SEP

Key Point: During the Medicare Advantage Open Enrollment Period (Jan 1 - Mar 31), those already in an MA plan can switch to a different MA plan or return to Original Medicare and add a Part D plan.

Test Your Knowledge

Which of the following is required to enroll in a Medicare Advantage plan?

A
B
C
D
Test Your Knowledge

What is a key advantage of Medicare Advantage plans compared to Original Medicare?

A
B
C
D
Test Your Knowledge

During which period can a Medicare Advantage enrollee switch to a different MA plan or return to Original Medicare?

A
B
C
D