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Summary: Some Medicare costs will rise in 2020. This includes Part A costs and Part B costs. However, Part D and Medicare Advantage premiums are expected to fall.
Medicare costs can rise and fall. In 2012, for example, the Part B premium actually went down by over $15 a month.
In 2013, 2014, and 2015, the Medicare Part B premium remained unchanged. In 2020, however, Medicare costs are going up across the board. If you’re trying to figure out how much does Medicare cost now, check out the summary of rate increases below.
How much are Medicare premiums in 2020?
Premiums are higher in 2020 for both Part A and Part B. Most people don’t pay premiums for Part A, but if you’re one of the few who pays for Part A, your premiums will be $458 a month, a $21 increase over 2019.
Medicare costs for Part B premiums are also going up by about $9 a month; the 2020 Part B premium is $144.60, about 7% higher than 2019. The Part B premium increased quite a bit more than the 1.7% rate of inflation, but the Centers for Medicare and Medicaid Services (CMS) blame the extra costs on higher than expected spending for physician-administered drugs in 2019.
The 7% of enrollees who pay an income-related monthly adjustment amount (IRMAA) with their Medicare premiums will also pay a bit more. If this applies to you, visit the Social Security Administration’s 2020 IRMAA rates and income guidelines.
Remember: Everyone pays the monthly Part B premium, whether they choose Original Medicare or Medicare Advantage.
How much are 2020 Medicare costs for deductibles?
The Part B deductible jumps $13 to $198 in 2020, and the Part A deductible increases by $44 to $1,408. Part A daily coinsurance amounts will also go up:
- Inpatient days 61 through 90 now have a $352 daily copayment
- Inpatient days 91 through lifetime reserve days now cost $704 per day
- Skilled nursing facility inpatient days 21 through 100 will cost $176 per day
What are Medicare costs for prescription drugs in 2020?
Medicare costs for Part D premiums are actually going down in 2020. According to CMS, the projected average Part D premium in 2020 is $30, the lowest it has been since 2013. It represents a decrease of over 13% since 2017.
Now for the bad news: You have to spend more out-of-pocket before you fall into the coverage gap. In 2020, you won’t hit the donut hole until your prescription drug costs reach $4,020, a $200 increase. But there’s a silver lining here, too: Once you’re in the coverage gap, you’ll only pay 25% for generic prescription drugs in 2020, compared to 37% in 2019.
Remember: Medicare Part D Prescription Drug Plans are private plans, so your actual costs are set by the insurer who sells the plan. You may pay more or less than the national average Medicare costs for prescription drug coverage.
Are Medicare Advantage plan costs going up in 2020?
Medicare Advantage plans are private plans where plan premiums, benefits, and cost-sharing expenses are determined by the insurance company offering the plan. However, CMS says that new competition initiatives are lowering the Medicare costs for Medicare Advantage plans across the board. In 2020, premiums are expected to be 23% below 2018 costs—CMS says they are the lowest in 13 years.
Medicare Advantage deductibles are also at the discretion of the insurer. You may be able to find zero-premium and/or zero-deductible plans in your area (our plan comparison tool is helpful for evaluating costs).
Finally, the Medicare Advantage maximum out-of-pocket limit will stay the same in 2020 at $6,700. However, plans are allowed to set their out-of-pocket cap lower, so it’s important to compare all Medicare costs when you’re shopping for coverage this year.
Remember: Most Medicare Advantage plans include Part D coverage for prescription drugs, so keep that in mind when you check out MA premium costs. You won’t pay a separate Part D premium if your plan covers prescription medications.
Are Medicare Supplement insurance plan costs going up in 2020?
These plans are also sold by private insurance companies, so you need to check with the insurer to get 2020 premium rates. CMS has released new out-of-pocket caps for Plan K and Plan L. In 2020, the cap for Plan K will be $5,880, and Plan L will be $2,940. That’s an increase of $320 and $160 respectively.
How much does Medicare cost in 2020?
Everyone will pay a bit more for Part B in 2020, but after that, your 2020 Medicare costs may vary from your spouse’s or friends’. CMS announced that the average county will have 39 different Medicare Advantage plan options in 2020, up from 33 in 2019. That means more choices for everyone—and more opportunities to find cost-effective coverage that meets your needs.
If you choose to stick with Original Medicare, you still have options to lower your out-of-pocket Medicare costs with a Medicare Supplement insurance plan. Even though Plan C and Plan F will no longer be available to new beneficiaries, Plan G offers similar comprehensive coverage once you pay your Part B deductible. You have more options than ever to take control of your Medicare costs in 2020.
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