Medicare Your Coverage Options

What are Medicare premium and other costs in 2020?

Written by Diane Archer
The 2020 standard monthly Medicare Part B premiumwhich covers medical and outpatient care, rises to $144.60. It represents a monthly increase of $9.10, from $135.50 this year, for people with incomes of $87,000 or less.
Social Security benefits are increasing in 2020up 1.6 percent from this year, an average of $24 a month. Some of that increase will go towards the higher Medicare monthly premium. But, most people will have about $15.00 more a month after paying the higher standard Medicare Part B premium.
In 2020, people whose modified adjusted gross income from two years ago as reported on their federal tax return–about six percent of the Medicare population–pay:
  • $202.40 a month, if their income is above $87,000 and no more than $109,000.
  • $289.20 a month, if their income is above $109,000 and no more than $136,000
  • $376.00 a month, if their income is above $136,000 and no more than $163,000
  • $462.70 a month, if their income is above $163,000 and no more than $500,000
  • $491.60 a month, if their income is above $500,000

For couples with combined incomes under $326,000 filing a joint tax return, the premium amount is double the individual income. Couples with incomes between $326,000 and $750,000 each pay a $491.60 monthly premium. And, couples with incomes over $750,000 each pay a $491.60 monthly premium. Visit this CMS web site if you are filing separate returns

Part B annual deductible: $198, an increase of $13 from the annual deductible of $185 in 2019.

People with incomes up to 135 percent of the federal poverty level, ($1,426 in monthly income for an individual and $1,923 for a couple in 2019; these amounts may increase in 2020) are eligible for help paying their premiums through Medicaid or a Medicare Savings Program.

For more than four decades, the Medicare Part B premium (medical insurance) was the same for everyone regardless of income, geography or health status, a quarter of the cost of Part B services. (Medicare Part A, hospital insurance, is premium-free if you have contributed into Social Security for at least 40 quarters.)  In 2007, wealthier people with Medicare began paying higher premiums.

Here are 2020 Part A costs:

  • There is no Part A premium if you or your spouse have at least 40 quarters of coverage.
  • The Part A premium if you or a spouse has at least 30 quarters of coverage is $252 a month; if you don’t have at least 30 quarters, the premium could be $458 a month.
  • The Part A inpatient hospital deductible is $1,408, an increase of $44 from $1,364 in 2019, and daily coinsurance for hospitalizations after day 60 is $352 a day in a benefit period; coinsurance for lifetime reserve days is $704 a day.
  • The Part A daily coinsurance for skilled nursing facility stays after day 20 is $176, an increase of $5.50 from $170.50 in 2019.

Here’s more from Just Care:

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2 Comments

  • Medicare premiums have increased on an annual basis for the last 3 years. Is the increase a regular occurrence – should recipients expect an increase in premiums every year?

    Who determines the amount of the premium?
    How are the increases in premiums calculated?

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