A frequent question I get from many clients is how can a Medicare Advantage plan have no monthly premium?  This is possible because Medicare Advantage insurance companies are provided a monthly stipend from Medicare.  That stipend is then used to subsidize the zero premium plans.

In other words, Medicare pays the insurance company to administer your benefits.  So instead of the federal government (Medicare) managing your health care, a private insurance company of your choice is doing that instead.  Medicare has paid that insurance company a monthly amount to take care of you.  Therefore, they can charge no premium because they are getting paid by the government.  The co-payments and co-insurance amounts for services rendered are what the insurance company charges in order to make a profit.

Questions about Medicare?

To contact us for unbiased assistance in navigating your Florida Medicare options, call (941) 405 – 3900.

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