I often get asked by people about Medicare Advantage plans that have zero premium, and if they’re eligible for those types of plans.
Anyone who’s eligible for Part A and Part B of Medicare is eligible to enroll in a Medicare Advantage plan and can select a plan that has zero premium. Most of the Medicare Advantage plans do have a premium to them but there are some that offer coverage with a no premium.
How can an insurance company offer a plan that has no premium? When you enroll in a Medicare Advantage plan you are assigning your Medicare benefits to that insurance company, and Medicare is going to provide that insurance company with a monthly payment.
When you enroll in a Medicare Advantage plan, you’re making an annual election to do so. At the end of any year you can cancel your Medicare Advantage plan and revert back to original A & B of Medicare.
The idea behind it is these annual elections allow you a great amount of flexibility to get the most appropriate benefit program for you.