Don’t Assume It’s a Good Deal—The Worst Medicare Advantage Plans Often Come With the Lowest Costs

Key Takeaways

• Some of the lowest-cost Medicare Advantage plans in 2025 come with the highest long-term risks, including limited provider access, prior authorization hurdles, and denied claims.

• A low monthly cost doesn’t guarantee high-quality care. The worst plans often carry CMS star ratings of 2.5 or below and tend to rank poorly on customer satisfaction, care coordination, and access.

Lower Costs Can Hide Bigger Problems

It’s natural to be drawn to Medicare Advantage plans that promise low premiums, affordable copays, and attractive extra benefits. But in 2025, those low upfront costs can mask serious trade-offs. Plans that appear inexpensive on the surface often come with restrictive provider networks, frequent denials of service, and long delays due to prior authorizations.

The Centers for Medicare & Medicaid Services (CMS) gives each Medicare Advantage plan a star rating between 1 and 5. Plans with a rating below 3 stars are considered poor performers. In fact, CMS flags plans with consistently low ratings for potential sanctions or removal. If you’re choosing a plan based solely on price, you may find yourself enrolled in one with a 2.5-star rating or lower, exposing you to lower care quality, poor service, and administrative headaches.

What Makes a Medicare Advantage Plan Among the Worst?

Several key features often appear in the lowest-rated Medicare Advantage plans. Here’s what to watch for in 2025:

Low CMS Star Rating

Plans with a CMS rating of 2.5 stars or below are known to perform poorly in several categories:

• Chronic disease management

• Member complaints and disenrollments

• Customer service responsiveness

• Timeliness of appeals and grievances

A low rating is a warning sign. In 2025, the CMS star ratings are more critical than ever, as the agency continues efforts to reduce poor-performing plans and improve beneficiary satisfaction.

Prior Authorization Delays

Many of the worst plans in 2025 still rely heavily on prior authorization requirements. This means you must get approval before receiving services like MRIs, outpatient surgeries, or even home health care. These delays can:

• Postpone necessary treatment

• Increase emergency room use due to lack of timely care

• Result in denied claims for services already rendered

The added stress, paperwork, and uncertainty often outweigh any upfront cost savings.

Limited Provider Networks

Another hallmark of poorly rated plans is a restricted network of doctors, hospitals, and specialists. In 2025, this can be especially risky if:

• Your preferred providers are not in-network

• You travel frequently and need care outside your home region

• Your specialist options are severely limited

Many enrollees find that they cannot continue seeing the same doctors or must travel further for care.

High Out-of-Pocket Spending Caps

While some plans boast low or no premiums, they often include high maximum out-of-pocket (MOOP) limits. In 2025, the Medicare Advantage in-network MOOP can legally go as high as $9,350. The worst plans often set their limits near or at this ceiling.

You may not notice this until you face a major health issue. Suddenly, the cost burden can spike due to hospitalizations, surgeries, or cancer treatment.

Weak Coverage for Post-Acute and Long-Term Care

Poorly rated plans often provide minimal support for skilled nursing care, rehabilitation, or home health services. These gaps matter when recovering from surgery or managing chronic conditions.

Many plans:

• Offer shorter skilled nursing facility coverage

• Deny home health requests more often

• Limit physical and occupational therapy sessions

These cutbacks can impact your recovery, independence, and long-term health.

The Illusion of Added Benefits

In 2025, most Medicare Advantage plans advertise a variety of added benefits like vision, dental, hearing, gym memberships, or over-the-counter allowances. While these may seem like bonuses, the worst plans use them to distract from their deficiencies.

Here’s the reality:

• These extras are often limited in scope

• Many require you to use specific vendors or locations

• Some are difficult to access or require additional paperwork

Don’t let these extras distract from core concerns like care access, provider choice, and CMS rating.

Red Flags That a Plan May Not Deliver

Before enrolling in a Medicare Advantage plan in 2025, watch out for the following warning signs:

• A CMS rating below 3 stars

• Frequent or complicated prior authorizations

• No access to your current doctors or specialists

• MOOP limits close to the legal maximum

• High member disenrollment rates

If a plan has lost many enrollees over the past year, that’s often a strong signal that the experience is not meeting expectations.

Common Pitfalls When Choosing a Plan Based on Cost

Many Medicare beneficiaries assume that a low-cost plan means a good deal. But here’s what can go wrong:

1. Underestimating Total Yearly Costs

The premium may be low, but out-of-pocket costs for services, especially if you require frequent care, can add up fast. These include:

• Specialist copays

• Prescription drug costs

• Diagnostic tests

• Inpatient stays

What looks affordable in January can become burdensome by June.

2. Ignoring Coverage Changes

Plans can change each year. A plan that looked good in 2024 may have dropped providers or changed its drug formulary in 2025. Always review the plan’s Annual Notice of Change and confirm your doctors and prescriptions are still covered.

3. Falling for Overpromising Advertisements

Some plans invest heavily in marketing that emphasizes low costs and additional perks. These ads often don’t highlight network restrictions, prior authorization, or poor CMS ratings.

Instead of choosing based on commercials or brochures, take time to evaluate the full scope of what’s covered.

4. Confusing Premiums with Value

A lower premium doesn’t mean better value if you end up paying more in:

• Deductibles

• Coinsurance

• Prescription drug tiers

• Emergency or out-of-network care

Look beyond the price tag and focus on how the plan fits your health needs.

Who Is Most at Risk of Enrolling in a Poor-Quality Plan?

In 2025, some Medicare beneficiaries are more likely to end up in one of the worst plans due to:

• Lack of experience: New enrollees who are unfamiliar with Medicare Advantage rules

• Language barriers: Individuals who may not understand plan documents fully

• Low-income beneficiaries: Those who prioritize cost above all else

• People with multiple chronic conditions: Who need coordinated, reliable care that the worst plans struggle to provide

If you fall into one of these groups, getting personalized help before enrolling can prevent a costly mistake.

What CMS Is Doing About It in 2025

To improve the quality of Medicare Advantage plans, CMS continues to:

• Suppress plans with a history of low ratings from marketing to new enrollees

• Require plans to clearly publish network directories

• Penalize plans that inappropriately delay or deny care

• Encourage star rating improvement through quality bonuses

Still, some poor-performing plans remain in the system. That’s why it’s important for you to know what to look for before you enroll.

Steps You Can Take to Avoid the Worst Plans

To make a confident choice in 2025, follow these best practices:

• Check the CMS Star Rating: Aim for a plan with at least 3.5 stars.

• Review the Plan’s Summary of Benefits: Look closely at out-of-pocket costs, drug coverage, and prior authorization rules.

• Confirm Your Providers: Make sure your doctors, specialists, and hospitals are in-network.

• Review the Drug Formulary: Check if your prescriptions are covered and how much they’ll cost.

• Understand the MOOP Limit: Choose a plan with a lower out-of-pocket cap when possible.

• Read the Annual Notice of Change (ANOC): See how the plan is changing from last year.

• Talk to a Licensed Agent: Get help comparing your options in detail.

Choosing Quality Over Initial Savings Matters More Than Ever

In 2025, it’s easy to be drawn to Medicare Advantage plans with low premiums or enticing perks. But if a plan makes it harder to get the care you need, limits your choice of doctors, or surprises you with steep costs later, it’s not really a good deal.

Your Medicare coverage should support your health, not create more frustration. The best value comes from a plan that balances reasonable costs with reliable care, responsive service, and strong CMS performance.

Speak with a licensed agent listed on this website to review the details of your Medicare options before making a final decision. A quick conversation now could save you from a year of costly complications.