As 2020 comes around senior households might want to be wary of changes in Medicare that will potentially hurt their pocketbooks. The federal government recently announced premiums and deductibles for those with traditional Medicare will increase.
Medicare Part B For 2020
Part B premiums & deductibles for 2020 will be receiving an increase of $9.10 per month for a total of $144.60. For the year there is a total increase of $109. Deductibles on the other hand for Part B will increase $13 going to $198 for the whole year. What is the reasoning behind these rises in cost? Largely, due to spending on physician-administered drugs, part B premiums and deductibles have felt the effects causing the increase. The table below shows Medicare Part B income-related monthly adjuments.
| Beneficiaries who file
individual tax returns with income: |
Beneficiaries who file
joint tax returns with income: |
Income-related monthly adjustment amount | Total monthly premium amount |
| Less than or equal to $87,000 | Less than or equal to $174,000 | $0.00 | $144.60 |
| Greater than $87,000 and less than or equal to $109,000 | Greater than $174,000 and less than or equal to $218,000 | 57.80 | 202.40 |
| Greater than $109,000 and less than or equal to $136,000 | Greater than $218,000 and less than or equal to $272,000 | 144.60 | 289.20 |
| Greater than $136,000 and less than or equal to $163,000 | Greater than $272,000 and less than or equal to $326,000 | 231.40 | 376.00 |
| Greater than $163,000 and less than $500,000 | Greater than $326,000 and less than $750,000 | 318.10 | 462.70 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | 347.00 | 491.60 |
Premiums for high-income beneficiaries who are married and lived with their spouse at any time during the taxable year, but file a separate return, are as follows:
| Beneficiaries who are married and lived with their spouses at any time during the year, but who file separate tax returns from their spouses: | Income-related monthly adjustment amount | Total monthly premium amount |
| Less than or equal to $87,000 | $0.00 | $144.60 |
| Greater than $87,000 and less than $413,000 | 318.10 | 462.70 |
| Greater than or equal to $413,000 | 347.00 | 491.60 |
Medicare Part A 2020
Medicare Part A received an increase of $44 bringing the total to around $1,408 for the upcoming year. Part A inpatient hospital deductible covers beneficiaries’ share of costs for the first 60 days of inpatient hospital care. After that, the beneficiary must pay a coinsurance around $352 per day from days 61-90. This increase is coming from a cost of $341 in 2019. For lifetime reserve days an increase to $704 from $682 will be in effect for 2020. Skilled nursing coinsurance went up from $170.50 to $176. The chart below can help you visualize the changes.
| Part A Deductible and Coinsurance Amounts for Calendar Years 2019 and 2020 by Type of Cost Sharing |
||
| 2019 | 2020 | |
| Inpatient hospital deductible | $1,364 | $1,408 |
| Daily coinsurance for 61st-90th Day | $341 | $352 |
| Daily coinsurance for lifetime reserve days | $682 | $704 |
| Skilled Nursing Facility coinsurance | $170.50 | $176 |
What’s the difference between Part A & B?
Part A & B cover multiple types of care for Medicare recipients. Part A as stated earlier covers inpatient hospital services, skilled nursing facility services, and some home health care. As for Part B physician services are covered as well as outpatient hospital services, certain home health, medical equipment, and other medical and health not covered by Part A. To see how your parts A & B are changed for 2020 contact your agent today for a Medicare review!
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