2020 Medicare Premiums and Costs
The Centers for Medicare and Medicaid Services (CMS) released the 2020 Medicare premiums and costs that impact retirees for 2020. Unfortunately, the news doesn’t seem to bring a lot to be merry about for the upcoming year.
Here is a breakdown of what retirees on Medicare should expect in upcoming costs for 2020:
Part A (Hospitalization coverage):
Premium: $458.00 a month. Increase of over 4.80% from 2019. Those who qualify for Social Security benefits do not have to incur this premium.
Part A deductible: $1,408.00 per benefit period. An increase of over 3.20% from 2019. The good news; the Part A deductible was projected to be $1,420 per benefit period.
- 1 thru 60: $0.00.
- 61 thru 91: $352.00. An increase of over 3.8% from 2019 .
- 91 and over: $704. Also, an increase of over 3.8% from 2019.
Please note that the Inpatient deductible and coinsurance for stays in a hospital can be covered by a Supplemental Policy (Medigap).
Part B (Medical coverage):
Premium: $144.60 a month. An increase of 6.72% from 2019.
Part B Deductible: $198.00. An increase of over 7.00% from 2019.
Please note: with changes to Supplemental Plans (Medigap) the Part B Deductible premium can no longer be covered by these plans. Anyone entering into Medicare, if medical care is needed, this deductible must be paid out of pocket.
Supplemental Plans (Medigap Plans):
Premium for Plan G policy: $176.71 a month. An increase of over 5.00% blended for gender and tobaccos use.
Plan G policies are, due to Plan F policies no longer being for purchase, now the most robust plan available as they cover all the “gaps” within Medicare Part A and B with the exception of the Medicare Part B Deductible.
Plan G policy step up premium for age increased, for those states that are not guaranteed issue, by 7.21% from 2019 to 2020 on a national level blended for gender as well as tobacco use.
Part D (Prescription Drug Coverage):
Premium: $40.81 a month on a national level. A decrease of over 12.50% from 2019 (the good news).
Deductible: $401.08 on a national level. An increase of over 5.50%. Unfortunately, in order for coverage to start the Part D deductible must be paid in full first.
Please note: Part D policies that include a deductible increased by over 15% in premiums and the number of plans available nationwide decreased by just under 50%.
National Base Premium: $33.74. A decrease of about 1.36% from 2019. This is the amount that the Income Related Monthly Adjustment Amount (IRMAA) as well as the Part D late enrollment penalty is based on.
The Income Related Monthly Adjustment Amount (IRMAA) Brackets for 2020:
The good news is that the brackets did adjust slightly for inflation as the first 4 brackets has been increased by just under 1.90%. The surcharges for Part D declined slightly while the Part B surcharge increased by over 6.75%.
The 2020 Brackets are as follows:
Expected premium and costs per person who is using prescription medications on a national level:
- Part B: $144.60 a month.
- Part D: $74.29 a month (includes deductible on a monthly basis).
- Supplemental (Plan G Medigap Policy): $176.71 a month.
- Total: $395.60 a month.
- Annual: $4,747.20.
Please note: if a person enrolled into Medicare visits a hospital for a medically necessary need they are also subject to that Medicare Part B deductible of $198.00.
Annual total: $4,945.20 on a national level.
On average Medicare premiums inflated from 2019 to 2020:
- Part B: 6.72%.
- Part D premium: over -12.50%.
- Part D deductible: over 5.50%.
- Supplemental Plan (Plan G): 00%.
- Supplemental Plan (Plan G) step up for age: over 7.20%.
The time to start planning for Medicare premiums and costs is today for a free report detailing how healthcare will impact you contact firstname.lastname@example.org