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Ashford Insurance

Costs for Medicare in 2020

Sonia Ashford

Sonia Ashford

Sonia Ashford is the owner of Ashford Insurance an independent health insurance agency specializing in Texas and Oklahoma Medicare insurance.

Costs for Medicare in 2020

As we press into another new year, I wanted to remind you of how much your Medicare premiums, deductibles, and other out-of-pocket costs will be for 2020.

Every year, the Medicare premiums, deductibles, and copayment rates are adjusted according to the Social Security Act. For the year 2020, the Medicare Part B monthly premiums and the annual deductible are slightly higher than the 2019 year amounts.

The standard monthly premiums for a Medicare Part B enrollee will be $144.60 for 2020, a jump of $9.10.

The standard premium is what most Medicare-eligible will pay. Part B of Medicare covers physician services, outpatient hospital services, certain home health services, durable medical equipment, and certain other medical and health services that are not covered by Medicare Part A.

The annual deductible for all Part B beneficiaries is $198 in 2020, a slight rise of $13.

The increase in the Part B premiums and deductible is mostly due to Medicare’s rising expenses for drugs that are administered in doctors’ offices. The current law requires Medicare to pay the average sales price for a Part B drug and also pay the physicians a small percentage of a drug’s sale price.

Since 2007, Part B premiums have been based partly on a beneficiary’s income, with higher-income beneficiaries paying higher premiums. This income-related monthly adjustment amounts only affect about 7 percent of people with Part B. The 2020 Part B total premiums for high-income beneficiaries can be found here: http://tucne.ws/1drw

Medicare Part A covers inpatient hospital, skilled nursing, and some home health-care services. Around 99% of Medicare beneficiaries do not have a Part A premium since they paid Medicare payroll taxes for at least 40 quarters of employment.

The Part A inpatient hospital deductible that beneficiaries will pay if they are admitted to the hospital will be $1,408 in 2020, a rise of $44. This Part A inpatient hospital deductible covers the beneficiaries’ share of costs for the first 60 days of Medicare-covered inpatient hospital care for a benefit period.

Beneficiaries must pay a coinsurance amount of $352 per day for the 61st through 90th day of hospitalization for 2020 (versus $341 for 2019) in a benefit period and then $704 per day for lifetime reserve days (compared to $682 in 2019).

For those beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care services in a benefit period will increase to $176 in 2020 ($170.50 in 2019).

All these premiums and cost-sharing apply to people on Original or Traditional Medicare. The premiums and deductibles for Medicare Advantage and Medicare Part D Prescription Drug plans were previously finalized.

For 2020, Medicare Advantage premiums are expected to decline on average by 23 percent from 2018 and will be the lowest in the past 13 years while the plan choices, benefits, and enrollments continue to increase.

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Sonia Ashford

Sonia Ashford

Sonia Ashford, “The Medicare Insurance Lady”, has been helping Medicare eligibles in Texas with their Medicare Insurance since 2005.