2020 Original Medicare Premiums and Deductibles
2020 Medicare Parts A and B Changes
Every year Medicare can change their premiums as well as your co-insurance amounts for Original Medicare. Some years the changes are relatively small. Other years the changes are larger. 2020 has some of the largest increases we’ve seen in the past few years.
If you are already on Medicare, you may be wondering how it impacts you. And if you are just about to start Medicare then you are probably already overwhelmed with the amount of information.
So I’ll try to clear things up a little bit for you.
Medicare Part B Premium
The amount most people will pay for their Medicare Part B premium Increased from $135.50 to $144.60. This means you could be paying an extra $9.10 per month which is almost an extra $110 per year for your Medicare Part B.
You could be paying a different amount for several reasons including:
- IRMAA
- Extra Help
- Hold-Harmless provision for Social Security recipients
Medicare Part B Deductible
The Medicare Part B Deductible increased from $185 to $198 in 2020. This is a once per calendar year deductible so the most it would impact you is $13.
But that is still a large jump compared to previous years. Going into 2019 it only increased by $2 from $183 in 2018 to $185 in 2019.
As a reminder, the part B deductible is what you are responsible for before Medicare starts paying for any non-preventive outpatient care.
Medicare Part A Deductible
The Medicare Part A deductible increased from $1,364 to $1,408 per occurrence. That’s an increase of $44 per occurrence.
And if you remember correctly, it’s possible for you to have to pay this deductible multiple times per year. Since it’s only good for 60 days, you could have to pay it more than once per year.
As a reminder, the part A deductible is what you are responsible for before Medicare starts paying for inpatient hospital care.
Medicare Part A Co-insurance Amounts
The Medicare Part A deductible is your responsibility for the first 60 days you spend as an inpatient in a hospital. Starting on day 61, you have a daily co-insurance amount you need to pay for your care.
In 2020, that amount is increasing from $341 to $352 per day. This is the amount owed per day for days 61-90.
After that, your responsibility increase to $704 per day for the rest of your lifetime reserve days.
Skilled Nursing Care co-insurance also increases for days 21-100 from $170.50 in 2019 to $176 in 2020.
What does this mean for you?
With these amounts increasing more than the historic trend you may be asking yourself what can you do?
One thing you can do is look at Medicare Supplements which help fill in the gaps of Original Medicare.
Or maybe you prefer to look into Medicare Advantage as an all in one solution for your Medicare needs.
Either way I can help you compare your options and make this much easier for you to make a decision. That way you don’t need to feel overwhelmed any longer and can stop worrying about insurance.
Mike Lovell
608-571-4461