Best States for Affordable Medicare Plans: 2023 Medicare Advantage Premiums by State

In this Guide...

The national average Medicare Advantage plan premium is $17.60 per month in 2023, according to our analysis of October data from the Center for Medicare & Medicaid Services (CMS). Find out the average premiums and deductibles for 2023 Medicare Advantage plans and see where your state ranks among the least and most affordable.

1
Key Findings

 

  • The average premium for a Medicare Advantage (Medicare Part C) plan that includes prescription drug coverage is $17.60 per month. The average deductible for medical care is $25.44 in 2023, partly due to plans in many states that feature $0 medical deductibles.

  • Private Medicare plan premiums, deductibles and availability can vary widely by state and even by county. Florida, New Mexico, Rhode Island, Alabama, South Carolina, Nevada and Nebraska rank among the most affordable states for Medicare Advantage in 2023.

  • In 2023, no Medicare Advantage plan may have a maximum out-of-pocket spending limit for in-network care that is greater than $8,300. Most plans use a limit that is less than that amount. The average max out-of-pocket (MOOP) spending limit for Medicare Advantage Prescription Drug (MA-PD) plans in 2023 is $4,663.80.
2
Study Overview

Medicare Advantage Prescription Drug plan premiums, deductibles and other plan data for 2023 were recently published by the Centers for Medicare & Medicaid Services (CMS), and two broad takeaways are clear:

  • Plans continue to become more affordable each year, with the average 2023 premium dropping to $17.60 per month and the average medical deductible registering $25.44 per year, each down from their respective averages in 2022.

  • Affordability varies greatly by state, ranging from an average premium of just $2.50 per month in Nevada to $46.79 per month in Minnesota. 

Medicare Advantage (Medicare Part C) plans are private insurance plans that serve as alternatives to federally funded Original Medicare (Medicare Part A and Part B).

Medicare Advantage plans replace Original Medicare, covering Part A and Part B benefits in one plan. Medicare Advantage plans may also typically offer a range of benefits not covered by Original Medicare such as dental, vision and hearing care. Around nine out of 10 Medicare Advantage plans also include prescription drug coverage and are known as Medicare Advantage Prescription Drug, or MA-PD, plans. 

The table below ranks each state according to the average premium paid for a Medicare Advantage Prescription Drug plan in 2023, while also illustrating the average medical deductible and total number of plans available within the state. 

3
Average Medicare Advantage Prescription Drug Plan Premiums by State

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Graphic table showing the rental vacancy rate of each state from 2015 to 2021, including the second quarter rate


Alaska is not included in this list, as individual Medicare Advantage plans (not employer-provided) aren't currently available in the state.

4
The Most Affordable States for Medicare Advantage Plans

There are 20 states where the average medical deductible for 2023 MA-PD plans is $0. Plans often have a separate deductible for prescription drug benefits.

Considering average monthly premiums and average medical deductibles, Medicare Advantage plans with Prescription Drug coverage are the most affordable in:

  • Rhode Island ($0 average medical deductible; $5.32 average premium)
  • Alabama ($0 average medical deductible; $5.95 average premium)
  • Florida ($0 average medical deductible; $6.46 average premium)

New Mexico ($0 medical deductible; $9.69 average premium) and South Carolina ($0 medical deductible; $9.89 average premium) also rank among the most affordable states for MA-PD coverage. 

Nevada ($2.50) and Nebraska ($2.66) are home to plans with the lowest average monthly premiums, but each state has average medical deductibles that are higher than the national average. 

Also of note is a new change for Medicare in 2023: patient costs for a one-month supply of insulin are limited to no more than $35.

5
The Least Affordable States for Medicare Advantage Plans

At the other end of the scale:

  • New Hampshire is home to plans with the highest average medical deductible for 2023 plans, at $151.38. New Hampshire MA-PD plans have a $19.31 average monthly premium, which is one of the 20 highest state averages in 2023. 

  • New Jersey plans have the 2nd highest average medical deductible ($111.64), and only 14 states have plans with higher average premiums than New Jersey’s $20.75 per month. 

Other states where MA-PD plans can be more expensive than the average include:

  • Oregon ($68.85 average deductible; $27.34 average premium)
  • North Dakota ($53 average deductible; $30.51 average premium)
  • South Dakota ($83.33 average deductible and $20.56 average premium).  

Minnesota ($46.79) and Michigan ($39.83) have the highest average premiums in the nation, but plans in each state have $0 average medical deductibles. 

6
Medicare Advantage Plan Availability by State

There are 27,519 unique Medicare Advantage Prescription Drug plans available nationwide in 2023. This includes localized versions of regionally available plans, which can vary from one county to the next.

Plan selection varies from 12 plan options in Washington D.C. to 6,939 in Georgia. The states with the most MA-PD plans available in 2023 include:

  1. Georgia: 6,939
  2. Texas: 4,673
  3. Kentucky: 3,763
  4. Ohio: 3,476
  5. Virginia: 3,442
  6. Missouri: 3,233
  7. Indiana: 3,207
  8. North Carolina: 2,749
  9. Tennessee: 2,563
  10. Pennsylvania: 2,474

The states and districts with the fewest MA-PD plans available in 2023 include:

  1. District of Columbia: 12
  2. Hawaii: 38
  3. Delaware: 63
  4. Rhode Island: 86
  5. Wyoming: 87

Medicare Advantage has continued to soar in popularity since it was first introduced to the market nearly 20 years ago. Roughly half of the nation’s 59 million Medicare beneficiaries are enrolled in a Medicare Advantage plan today.

Much of the popularity of Medicare Advantage (otherwise known as Medicare Part C) may be attributed to the low monthly premiums offered by many plans.

While the cost of health insurance seems to rise every year, Medicare Advantage premiums have gone against the grain and have decreased in price every year since 2015 and have been cut by more than half since 2010. 

Medicare beneficiaries across the nation are currently taking part in the fall Medicare open enrollment period. For many beneficiaries, this is the only time of year they can compare local plan options and make changes to their Medicare insurance coverage.

The fall open enrollment period takes place from October 15 to December 7 each year. Coverage for plans purchased during 2022 open enrollment take effect on January 1, 2023.

8
Methodology

We analyzed 2023 Medicare Advantage Prescription Drug plan cost details provided by the Centers for Medicare & Medicaid Services (CMS) and insurance plan providers through Sun Fire Inc.

Average premiums, deductibles and max out-of-pocket spending limits are not weighted by enrollment.

View more of our research and reports.

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