2020 Medicare Changes At A Glance

2020 Medicare Changes

There are many changes coming to Medicare benefits in 2020. The following are a few key takeaways:

  • Part A Deductible – Increases from $1364 => to $1420
  • Part B Deductible – Increases from $185 => to $197
  • Part B Premium – Increases $135.50/mo => to $144.30/mo
  • Social Security “cost of living” increase 1.6%
  • Part D Initial Deductible – increases from $415 => to $435
  • Part D Out-of-Pocket Threshold – increases from $3820 => to $4020


Part A Deductible

Original Medicare consists of two parts: Part A (hospital insurance) and Part B (medical insurance). Part A covers the first 60 inpatient days during a benefit period. This includes care received while in a hospital, a skilled nursing facility, hospice care and home health care.

In 2019 the Part A Deductible was $1,364, but it’s projected to increase to $1,420 in 2020. The increase in the Part A deductible will apply to all enrollees. Many enrollees may have supplemental coverage that pays all or part of the Part A deductible.

Part B Deductible

Part B covers medical services and supplies. This includes outpatient care, preventative services, ambulance, and medical equipment.  In 2019 the Part B Deductible was $185, but it is projected to increase to $197 in 2020.

Many enrollees may have supplemental coverage that pays for the Part B deductible. Such as Medicaid, employer-sponsored plans, and Medigap plans C and F. The following is a quote from Medicare.gov regarding Medigap plans.

Starting January 1, 2020, Medigap plans sold to new people with Medicare will not be allowed to cover the Part B deductible. Because of this, Plans C and F will no longer be available to people new to Medicare starting on January 1, 2020. If you already have either of these 2 plans (or the high deductible version of Plan F) or are covered by one of these plans before January 1, 2020, you will be able to keep your plan. If you were eligible for Medicare before January 1, 2020, but not yet enrolled, you may be able to buy one of these plans.

Part B Premium

The monthly premium for Part B  was $135.50 and is expected to increase to $144.30 in 2020. The increase is likely to apply to nearly all Part B enrollees.

Social Security announced the cost-of-living adjustment is expected to increase by 1.6% in 2020. This means the average retiree will get around $24 more each month which will cover the Part B increase.

2020 Medicare Changes

Part D Deductible

The initial deductible for Part D prescription drug plans was $415 in 2019 and is expected to increase to $435 in 2020. The initial deductible is the amount enrollees pay before Part D begins to pay its share.

The out-of-pocket threshold (where catastrophic coverage begins) will increase significantly, from $5100 in 2019 to $6350 in 2020. The copay amounts for people who reach the catastrophic coverage level will also increase slightly in 2020.


Upward Trend

John Shinn, the Senior Products Specialist at Empower Brokerage, has been working with Medicare Insurance for over forty years. In that time he has seen many changes to the program. An aspect of Medicare that surprises most people is how the costs trend upward every year, John explains. “The only thing that has remained constant about Medicare is the constant change”. Click Here to see a short video of John explain what Medicare changes to expect.

To learn more about Medicare Supplement Plans, call Empower today and let us help you with your Medicare questions.

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