November 14, 2019
The Centers for Medicare and Medicaid Services (CMS) have announced the 2020 increases in premiums, deductibles, and coinsurance amounts for the Medicare Part A and Medicare Part B programs. The increase in costs associated with Medicare are adjusted in accordance with the recent 1.6 percent Cost-of-Living Adjustment (COLA) announced by the Social Security Administration (SSA) for 2020.
It’s easy to get confused by the multiple Parts of Medicare when selecting the health coverage one needs, as there are multiple “Parts” and plans available. It’s important to get educated in order to choose coverage that best suits one’s unique healthcare and financial needs and avoid paying for coverage that will likely not be needed.
Simply put, Medicare Part A is often referred to as “Hospital Insurance” and generally covers inpatient hospital stays, care at skilled nursing facilities, hospice care, and home health care. Medicare Part B, or “Medical Insurance,” typically covers outpatient services, as well as durable medical equipment (DME), laboratory tests, and vaccinations.
In 2020, the Medicare Part B monthly premium will increase to $144.60 a month for most Medicare recipients, which is a $9.10 increase from the 2019 premium of $135.50 per month. For many Medicare recipients, there is no Medicare Part A monthly premium cost.
Some Medicare recipients may not see the full $9.10 a month increase due to a “hold harmless” provision which prevents an increase in Medicare premiums from exceeding the amount a beneficiary will receive from the Social Security COLA. Medicare recipients whose yearly household income exceeds $87,000, however, may be assessed an income-related monthly adjustment amount (IRMAA). These individuals will see their monthly premium increase by an amount ranging from $57.80 to $347.00.
In addition to the increase in premium costs, the Medicare Part A deductible will go up to $1,408.00 for 2020, while the Part B deductible will be increasing to $198.00.
This post was written by Lauryn, a Benefit Coordinator.
Photo credit: Medicare.gov
Nothing in this post is intended as advice or a suggestion to elect or not elect to claim benefits of any kind, including Social Security benefits, nor is it intended as financial advice in any way. The decision to claim benefits is a personal one that is contingent upon each individual’s unique circumstances.