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2020 Medicare Part B Premiums, Deductibles and Coinsurance

Lorraine York-Edberg, SHINE Regional Program DirectorLorraine York-Edberg, SHINE Regional Program DirectorThe Centers for Medicare and Medicaid announced the Medicare Part A and B premiums and deductibles for 2020.

The standard monthly premium for Medicare Part B in 2020 will be $144.60, up from $135.50 in 2019, an increase of $9.10. The cost of this premium is normally taken out of your Social Security direct deposit. If you are not collecting Social Security yet, you will be billed the additional amount starting in 2020.

Social Security benefits are increasing by just 1.6% in 2020, which is about $16 for every thousand dollars received from Social Security. However, the 6.7% increase in Medicare Part B, will reduce the amount of increase you receive.

Medicare beneficiaries whose individual income is above $87,000 annually or a couple’s joint income above $174,000 annually will pay an increased amount for their Part B and Part D, called an income-related monthly adjustment amount, also known as “IRMAA.” The Federal government bases the 2020 adjustments on the beneficiaries’ 2018 Federal Income taxes. You may request a new initial determination by contacting your local Social Security office if you believe your IRMAA is incorrect. The monthly Part B premium for those who are enrolled helps pay for doctors' services, x-rays and tests, outpatient hospital care, ambulance service, medical supplies, and other medical equipment. 

The 2020 Part B annual deductible will be $198 for all people with Medicare, an increase of $13 from 2019. The Part B deductible is annual; once you have incurred $198 of expenses for Medicare-covered services in any year, the Part B deductible does not apply to any further covered services you receive for the rest of the year.

Social Security benefits are increasing by just 1.6% in 2020, which is about $16 for every thousand dollars received from Social Security.

Medicare Part A (Hospital Insurance) helps pay for hospital care, skilled nursing care, home health care, hospice care, and other services. The Part A deductible will increase from $1,364 to $1,408 for beneficiaries with Medicare only. The Part A deductible is the beneficiary’s only cost for up to 60 days of Medicare-covered inpatient hospital services. The 61st to the 90th day has increased from $341 to $352 a day, and beyond the 90th day has increased from $682 to $704 a day. For beneficiaries who have a Medigap plan to supplement Medicare, often most of these costs are covered by their supplemental insurance.

The skilled nursing facility coinsurance will increase from $170.50 to $176.00 for the 21st to the 100th day. Medicare Part A covers the first 20 days in a skilled nursing facility, after a three day qualifying stay in a hospital.

Many Medicare beneficiaries purchase additional insurance to cover the gaps of Medicare to help reduce out-of-pocket expenses including Medicare Supplemental Plans or Medicare Advantage Plans.  

This article is based on a news release from the Centers for Medicare and Medicaid Services.

The SHINE program, Serving the Health Insurance Needs of Everyone, provides confidential, and unbiased health insurance counseling for Medicare beneficiaries. This is a free service, though contributions are welcome and will go a long way to help support this vital program. For further assistance with any Medicare issue, you can make a SHINE appointment. To reach a trained and certified counselor in your area, contact the regional office at 1-800-498-4232 or 413-773-5555, or contact your local council on aging.