If you are looking for lower Medicare drug plan costs, it helps to live in the right state.
In some places, Medicare Advantage drug plan premiums cost less than $5 a month, according to an analysis by MedicareAdvantage.com, a non-governmental health insurance agency.
MedicareAdvantage.com identified the cheapest states for Medicare drug plan premiums by looking at Medicare Advantage plans for 2025 that include drug coverage. The analysis was based on federal Medicare data.
The analysis focused on Medicare Advantage drug plans only. There are two main types of Medicare:
- Original Medicare. Also known as traditional Medicare, this is offered directly by the federal government. It generally does not cover prescription drug costs, although people with Original Medicare have the option to buy a stand-alone prescription drug plan from a private health insurance company.
- Medicare Advantage. These plans are offered by private insurers and must provide all the same benefits as Original Medicare. But most offer additional benefits, and those usually include prescription drug coverage.
There are four states where the average Medicare Advantage drug plan cost is less than $5 a month. They are:
- Florida: $1.09
- Nevada: $3.09
- Rhode Island: $4.56
- Texas: $4.99
In stark contrast to the states above are three where the average monthly premium is $42 or more. They are:
- Wyoming: $49.13
- South Dakota: $42.06
- Montana: $46.36
The average cost for all plans nationwide is $11.02 per month, although some plans offer $0 monthly premiums.
MedicareAdvantage.com says the cost of private Medicare coverage can vary wildly from state to state or even from one ZIP code to another. Retirees who live in places with many affordable, high-quality plans typically will see lower prices than seniors where selection is scarce.
Other factors that can impact premiums include the local cost of living and any supplemental benefits a plan might offer, according to MedicareAdvantage.com.
In addition to the drug plan premium, Medicare Advantage enrollees also pay the federal premium for Part B coverage of outpatient care, which is usually taken out of monthly Social Security payments, and may also be responsible for a deductible and co-pays.
In the past. Medicare Advantage plans were famous for offering a bunch of extra perks, but that might be changing. For more, check out “Some Medicare Advantage Freebies Might Disappear Soon.”
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