How Is Medicare Part C Financed? 
Like original Medicare ultimately is financed through your taxes . Medicare pays private insurance companies a set amount per enrollee to administer the claims . The company can then take that money and develope their plan whithin guidelines set by Medicare . If the company is able to provide the benefits with the money provided by Medicare , then you may not have to pay an additional premium other than your normal Medicare Part B premium . If the benefits are more than Medicare allowance allows for then some plans charge an extra premium in addition to what Medicare provides . This is where the danger comes in when you hear about Medicare cutting funds to Medicare Advantage . Right now there are some very good zero premium plans available . These may be forced to go away if cuts are allowed to continue . 