Best Medicare Advantage Plans

Bottom Line

To choose the best Medicare Advantage company, consider what you need from a plan. Are you comfortable with an HMO, or do you require additional flexibility? For instance, if you want a PFFS plan, there are a few providers to consider, including UnitedHealthcare and Humana. 

If cost is your primary concern, consider Cigna. But beware that its Medicare star rating—an important indicator of quality—is below average. Or would you rather pay more monthly for a higher level of quality and customer satisfaction? Check out UHC's AARP plans, Aetna, and Kaiser, if it’s available in your area. 

Do you want a plan with drug coverage? If so, how much do you expect to spend on prescription drugs, and which specific drugs do you use? Medicare.gov’s plan finder lets you input the drugs you use when comparing plans to see which provides the best coverage. You can also see which specific plans offer additional coverage in the Medicare donut hole.

Individual Medicare Advantage plans have their own Medicare star ratings—we looked at national company averages. So, even if you choose a top-ranked company like UnitedHealthcare, ensure the specific MA plan you’re interested in has a rating you’re comfortable with. That information is also available in the plan finder tool.

What Is Medicare Advantage?

Medicare Advantage (MA), also known as Medicare Part C, is a program in which private insurers offer coverage as an alternative to government-provided Medicare. MA providers must be approved by Medicare and must offer most of the same coverage as Medicare parts A and B. They also usually offer prescription drug coverage and other benefits such as:

• Preventive dental care coverage
• Basic vision care coverage
• Basic hearing coverage
• Gym memberships
• Transportation to and from appointments
• Over-the-counter drugs

Pros and Cons of Medicare Advantage

Pros

• Low or no premiums: MA providers are paid by Medicare to administer the plans, so most (73%) don't charge enrollees premiums, though customers are still required to pay their Part B premium unless the MA plan also covers that.
• Out-of-pocket maximums: MA plans must limit the amount you pay out of pocket each year. For 2024, the maximum must be $8,850. Some plans have lower limits. Original Medicare doesn't have out-of-pocket maximums.
• Extra benefits: Many plans provide services that Original Medicare doesn't, such as vision, hearing, or dental coverage. Some also cover gym memberships or transportation to doctor visits.

Cons

• Fewer choices of health care providers: Medicare Advantage plans have networks of providers and you either can't visit and out-of-network doctor (if you have an HMO) or you'll pay more to do so (with a PPO). In contrast, you can use any doctor with Original Medicare.
• No Medigap coverage allowed: You can't use a Medicare Supplement (Medigap) plan to cover out-of-pocket costs like coinsurance and copays. That may not matter if you're 65 and relatively healthy. But as you age, you tend to need more expensive care. And while MA plans will cover 100% of your care after you meet your out-of-pocket maximum, that maximum may still be high enough that over the years, you'll pay more for coverage than you would if you stayed with Original Medicare and got a Medigap plan.
• Preauthorization requirements: Medicare Advantage plans require advance authorization for care much more often than Original Medicare, which can delay treatment. A government report also found that some MA providers wrongfully deny coverage. About 13% of denials met Medicare rules and should have been approved.
• Geographic coverage limitations: Medicare Advantage coverage is limited to the plan’s service area, which means your plan may not cover you while traveling (except for emergency care). If you travel a lot or have homes in different states, this is something to consider.
  

How to Choose a Medicare Advantage Plan

All MA plans must offer the same standard coverage as Original Medicare (Part A hospital insurance and Part B medical insurance). And many don't charge any premiums or deductibles. But there are other differences between plans.

Think About Plan Type

Would you prefer an HMO or a PPO? An HMO may be cheaper but require you to choose from a smaller group of health care providers and get referrals to see specialists. PPOs allow you to see out-of-network doctors and don't require referrals.

Compare Provider Networks

If you have doctors that you see now and don't want to switch, see if they are included in the provider network of any plan you're considering.

Examine Costs

Although you probably won't have to pay a premium, Medicare Advantage plans do include copays, which are fees you pay out of pocket when you receive care. Plans have out-of-pocket maximums, so be sure to examine these limits on your costs. The lower the out-of-pocket maximum, the better.

Check for Your Medicines

Look for any medications you currently take on the plan's formulary (the list of drugs covered by the plan) to see whether yours would be covered. And don't forget to look at medication copays, too.

Look at Plan Star Ratings

The government examines MA plans for their quality and customer satisfaction, and then assigns each a Medicare Star Rating. The ratings range from one star to five stars, with one star representing the lowest score.

How We Chose the Best Medicare Advantage Providers

To identify which Medicare insurance companies to review, we analyzed business and market insight databases including Statistia, Plunkett, and Gale. We also considered user-generated data from Google to determine public interest and trends in Medicare plans.

We collected data from third-party rating agencies like the credit rating agency AM Best and the National Committee for Quality Assurance (NCQA), an independent organization that rates health insurance plans on quality and customer satisfaction. We also gathered data from government websites and databases provided by the Centers for Medicare and Medicaid Services (CMS) such as CMS.gov and HealthCare.gov, and directly from companies via websites, media contacts, and existing partnerships. The data collection process spanned Sept. 15 to Sept. 29, 2023.

We then developed a quantitative model that scores each Medicare Advantage provider based on four major categories and 22 criteria that are crucial in evaluating the company's offerings and benefits.

We weighted the four categories as follows for this article:

• Plan features: 35%
• Plan quality and customer satisfaction: 30%
• Cost: 20%
• Availability: 15%

Read our full methodology for reviewing Medicare insurance providers.