2020 Medicare Costs
2020 Medicare Parts B Premium and Deductibles
The Centers for Medicare & Medicaid Services (CMS) has finally announced the 2020 Medicare premiums, deductibles, and coinsurance amounts.
Medicare Part B Premium will be $144.60 per month in 2020
Medicare Part B covers doctors and specialist visits, outpatient hospital services, certain home health services, durable medical equipment, and other medical and health services not covered by Medicare Part A.
Each year the Medicare premiums, deductibles, and coinsurance rates are adjusted according to the Social Security Act.
For 2020, the Medicare Part B monthly premiums and the annual deductible are increasing. The standard monthly premium for Medicare Part B enrollees will be $144.60 for 2020, an increase of $9.10 from $135.50 in 2019. If you are paying quarterly you bill will increase to $433.80.
Medicare Part B Annual Deductible will be $198 in 2020
The annual deductible for all Medicare Part B beneficiaries is $198 in 2020, an increase of $13 from $185 in 2019.
If you have a Medigap plan that does not cover the Part B deductible then you must pay this amount first before your plan picks up any costs.
Medicare Part B Income-Related Monthly Adjustment Amounts for people with Higher Incomes
If you earn more than $87,000 and are single or more than $174,000 and are married your Part B monthly premium will be increased based on your income.
These income-related monthly adjustment amounts (IRMAA) affect roughly 10 percent of people with Medicare Part B. The 2020 Part B total premiums for high income beneficiaries are shown in the following table:
|Beneficiaries who file individual tax returns with income:||Beneficiaries who filejoint tax returns with income:||Income-related monthly adjustment amount||Total monthly premium amount|
|Less than or equal to $87,000||Less than or equal to $174,000||$0.00||$144.60|
|Greater than $87,000 and less than or equal to $109,000||Greater than $174,000 and less than or equal to $218,000||$57.80||$202.40|
|Greater than $109,000 and less than or equal to $136,000||Greater than $218,000 and less than or equal to $272,000||$144.60||$289.20|
|Greater than $136,000 and less than or equal to $163,000||Greater than $272,000 and less than or equal to $326,000||$231.40||$376.00|
|Greater than $163,000 and less than $500,000||Greater than $326,000 and less than $750,000||$318.10||$462.70|
|Greater than or equal to $500,000||Greater than or equal to $750,000||$347.00||$491.60|
Premiums for high-income beneficiaries who are married and lived with their spouse at any time during the taxable year, but file a separate return, are as follows:
|Beneficiaries who are married and lived with their spouses at any time during the year, but who file separate tax returns from their spouses:||Income-related monthly adjustment amount||Total monthly premium amount|
|Less than or equal to $87,000||$0.00||$144.60|
|Greater than $87,000 and less than $413,000||$318.10||$462.70|
|Greater than or equal to $413,000||$347.00||$491.60|
Medicare Part A Premiums/Deductibles
Medicare Part A covers inpatient hospital (overnight hospital stays), skilled nursing facility, and some home health care services. About 99% of Medicare beneficiaries do not have a Part A premium since they have earned the minimum 40 quarterly credits as they earned their Social Security benefit.
The Medicare Part A inpatient hospital deductible that beneficiaries will pay when admitted to the hospital will be $1,408 in 2020, an increase of $44 from $1,364 in 2019.
The Part A inpatient hospital deductible covers beneficiaries’ share of costs for the first 60 days of Medicare-covered inpatient hospital care in a benefit period. In 2020, beneficiaries must pay a coinsurance amount of $352 per day for the 61st through 90th day of a hospitalization ($341 in 2019) in a benefit period and $704 per day for lifetime reserve days ($682 in 2019).
For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care services in a benefit period will be $176.00 in 2020 ($170.50 in 2019).
|Part A Deductible and Coinsurance Amounts for Calendar Years 2019 and 2020 by Type of Cost Sharing|
|Inpatient hospital deductible||$1,364||$1,408|
|Daily coinsurance for 61st-90th Day||$341||$352|
|Daily coinsurance for lifetime reserve days||$682||$704|
|Skilled Nursing Facility coinsurance||$170.50||$176|
People age 65 and over who have earned fewer than 40 quarters and certain persons with disabilities pay a monthly premium in order to voluntarily enroll in Medicare Part A.
Individuals who had at least 30 quarters of coverage or were married to someone with at least 30 quarters of coverage may buy into Part A at a reduced monthly premium rate, which will be $252 in 2020, a $12 increase from 2019.
Certain uninsured individuals who have less than 30 quarters of coverage and certain individuals with disabilities who have exhausted other entitlement will pay the full premium, which will be $458 a month in 2020, a $21 increase from 2019.
What will you pay?
Well, that depends on what type of insurance you have. Some people have insurance plans called Medigap plans that cover 100% of your out of pocket costs so they do not pay any deductibles or copays.
Other people who have Medicare Advantage Plans may pay very little per month (in some cases $0 per month) and will only pay copays when they see a doctor or other providers.
Would you like to know more?
If you would like help understanding your costs or need help finding a plan or if just want to ask a few questions, you can call me directly at 207-370-0143 or use my simple form on the CONTACT page of this site to send an email message.
The best part about working with me is that it will not cost you anything to talk with me to discuss your options and review the plans that are available. I am an independent insurance agent and I am paid by the insurance companies (not you) in the form of a commission when you enroll in a plan.
You will not pay anything to meet with me and you will pay the same price for your insurance that everyone pays whether they had my help or not.