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Medicare Advantage Myths That Could Cost You in 2025 From “$0 premium” plans to shrinking networks, not everything in the brochure tells the full story. Here’s how to separate fact from fiction this open enrollment. Every fall, the deluge begins. The average American eligible for Medicare receives up to eight mailers a week — not counting the TV ads, phone calls, and pop-ups promising “$0 premiums” and “all-in-one coverage” for Medicare Advantage plans. It sounds like winning the healthcare lottery. But Medicare Advantage isn’t simple — or free. Behind the shiny perks are trade-offs in access, flexibility, and cost. As a healthcare advisor, I’ve seen how even the most informed people get caught off-guard by the fine print. This year’s open enrollment season is the perfect time to separate myth from reality — and understand what’s actually changing for 2025. Myth #1: Medicare Is Free One of the biggest misconceptions is that Medicare, once you reach 65, means no more medical bills. In reality, Medicare is insurance — not a lifetime entitlement. You still pay premiums, deductibles, and about 20 percent coinsurance on most services. Even those “$0 premium” Medicare Advantage plans are funded by the same taxpayer dollars that support traditional Medicare. The government pays private insurers a fixed monthly rate per enrollee, and those insurers assume the risk — and potential profit. If you’re healthy, they keep more of that payment. If you’re not, they spend it on your care. So, no, Medicare isn’t free. The money is simply moving behind the scenes. Understanding where it flows — and how it’s used — is the first step toward choosing wisely. MORE FOR YOU Myth #2: Any Medicare Advantage Plan Will Do To see where Medicare Advantage (Part C) sits, it helps to understand the basics: Part A covers hospital and skilled-nursing care. Part B covers outpatient care, doctor visits, and preventive services. These are managed by the Centers for Medicare & Medicaid Services (CMS) under “Original Medicare.” Because Original Medicare doesn’t cover everything, many people buy Medigap supplemental plans and a Part D drug plan to fill the gaps. Medicare Advantage bundles all of this — hospital, medical, and often drug coverage — into one plan administered by a private insurer. By law, Advantage plans must cover everything Original Medicare covers, and most add extras like dental, vision, hearing, or fitness benefits. The trade-off is managed care: limited provider networks, prior authorizations, and yearly benefit resets. The key is understanding that every plan balances access, cost, and control differently — and those differences only matter once you start using care. Depending on how often you use care, you might pay more or less than under traditional Medicare plus a supplement. The right choice depends entirely on your health profile and tolerance for restrictions. Myth #3: A 5-Star Plan Is Always Better To help beneficiaries compare plans, CMS rates every Medicare Advantage plan on a 1-to-5-star scale. The scores combine dozens of measures: preventive screenings, chronic-condition management, customer service, member complaints, and even call-center responsiveness. Plans rated 4 stars or higher don’t just get bragging rights — they also earn bonus payments from CMS. Those funds often appear as richer benefits or lower copays, meaning the stars have real financial impact. But there are quirks. Each year, CMS adjusts its scoring thresholds, so a plan can lose a star even if nothing changes for you. The ratings emphasize administrative performance and satisfaction more than clinical outcomes. In short, a 5-star plan might manage paperwork well but still have a narrow network. What to remember: Stars are a solid starting point — but not the whole story. Combine them with your own research and, most importantly, a needs assessment. Myth #4: $0 Premium Means the Plan Works for You CMS pays private insurers roughly $1,000–$1,200 per person per month to manage care. In return, insurers take on both benefits and financial risk. If you stay healthy, the plan keeps more of that money. If you get sick, it’s used to cover your care. That’s why plans heavily promote extras like dental, fitness, and over-the-counter benefits — the “shiny objects” that attract enrollment. However, research shows that many aren’t aware of these perks or simply do not use them. There’s no single “best” Medicare Advantage plan. The right one depends on your doctors, prescriptions, chronic conditions, and financial comfort. A healthy retiree might value dental coverage; someone managing diabetes or heart disease should prioritize network quality and maximum out-of-pocket caps. The smartest step is to start with a needs assessment, not a brochure. A needs assessment simply means reviewing your health and lifestyle — the doctors you see, how often you need care, your medications, whether you travel, and how much cost-sharing you can afford. Mapping those factors before you enroll helps determine whether Medicare Advantage or Original Medicare plus a supplement gives you better protection and flexibility. Myth #5: Once You Pick A Plan, You’re Set The Medicare landscape is shifting again — not dramatically, but in ways that matter. Fewer plan choices. The number of individual Medicare Advantage plans is expected to drop by about 6.5% nationwide. Some insurers are consolidating under tighter margins and regulatory pressure, meaning some people may have to switch plans. Reduced extras. The “added value” of Advantage plans declined slightly for 2025, according to Milliman. Some plans are scaling back over-the-counter allowances, transportation, or flex-card perks. Tighter oversight and transparency. CMS is cracking down on misleading marketing and ensuring “$0 premium” ads clearly disclose costs and restrictions. Agent commissions are also under review. Dual-eligible changes. For people on both Medicare and Medicaid, new rules for Dual Eligible Special Needs Plans (D-SNPs) tighten participation requirements. Some “look-alike” plans may disappear, requiring transitions to fully integrated plans. Telehealth’s uncertain future. Pandemic-era telehealth waivers are set to expire unless Congress acts. That could limit virtual visits for some beneficiaries — especially outside urban areas. During recent government funding gaps, CMS also paused telehealth claim processing, underscoring how quickly access can shift. How to Choose Wisely Confirm your providers. Networks change every year; verify that your doctors and hospitals remain in-network. Check your prescriptions. Drug formularies update annually — confirm coverage and copays. Compare total costs. Consider premiums, copays, and out-of-pocket caps together. Ask about telehealth. Not all plans will keep pandemic-era flexibility. Review your Annual Notice of Change. It tells you exactly what’s new — and what’s gone. Seek unbiased help. State Health Insurance Assistance Programs (SHIPs) offer free, expert guidance. Two-thirds of U.S. bankruptcies involve medical debt. The right plan isn’t a luxury — it’s protection. Medicare Advantage offers simplicity and coordination; Original Medicare offers freedom and stability. The key is knowing which one fits you. As open enrollment unfolds, take an hour to align your health plan with your financial goals. Ask hard questions. Compare options. Don’t be swayed by glossy mailers or celebrity endorsements. Because in Medicare, what you don’t ask can cost you. Editorial StandardsReprints & Permissions
