The annual cost-of-living adjustment (COLA) means that retirees will be getting bigger Social Security retirement benefits in 2020. Before you start celebrating the windfall, however, it’s important to consider two things. One, the increase is only 1.6 percent. Two, Medicare Part A and B costs are also increasing.
Here’s how much more you can expect to spend on Medicare costs in 2020.
Medicare enrollees do not need to pay a premium for Medicare Part A if they have at least 40 quarters of Medicare-covered employment. According to CMS, approximately 99 percent of Medicare enrollees pay no premium for Medicare Part A.
Enrollees do have to pay for Medicare Part B, however, and the premiums are going to increase in 2020. Enrollees who earn less than the income threshold pay the standard Medicare Part B premium. This amount is increasing from $135.50 in 2019 to $144.60 in 2020. Enrollees who earn more than the threshold pay the income-related monthly adjustment amounts.
The 2020 monthly Medicare Part B premiums for individual taxpayers are as follows:
- Earning $87,000 or less: $144.66
- Earning $87,000 to $109,000: $202.40
- Earning $109,000 to 136,000: $289.20
- Earning $136,000 to $163,000: $376.00
- Earning $163,000 to $500,000: $462.70
- Earning $500,000 and up: $491.60
The 2020 monthly Medicare Part B premiums for married taxpayers filing jointly are as follows:
- Earning $174,000 or less: $144.66
- Earning $174,000 to $218,000: $202.40
- Earning $218,000 to $272,000: $289.20
- Earning $272,000 to $326,000: $376.00
- Earning $326,000 to $750,000: $462.70
- Earning $750,000 and up: $491.60
Medicare Deductibles and Copays
The Medicare deductible is the amount that enrollees have to pay out of pocket before Medicare begins paying. The copay or coinsurance amount is what enrollees have to pay out of pocket when receiving care. These amounts are increasing for Medicare Part A and Medicare Part B in 2020.
- The Medicare Part B deductible is going from $185 in 2019 to $198 in 2020.
- The Medicare Part A inpatient hospital deductible, which covers the first 60 days of Medicare-covered inpatient hospital care, is going from $1,364 in 2019 to $1,408 in 2020.
- The Medicare Part A daily coinsurance for the 61st to 90th day of hospitalization is going from $341 in 2019 to $352 in 2020.
- The Medicare Part A coinsurance for lifetime reserve days is going from $682 in 2019 to $704 in 2020.
- The Medicare Part A coinsurance for skilled nursing is going from $170.50 in 2019 to $176 in 2020.
Medicare Advantage plans combine the coverage provided under Medicare Parts A and B and often provide prescription drug coverage as well. If you enroll in a Medicare Advantage plan, you will pay the Medicare Part B premium along with any additional premium required for the Medicare Advantage plan.
Some Medicare Advantage plans have $0 premiums, which means you won’t pay anything beyond the Medicare Part B premium for coverage, although you will still be responsible for any copays and deductibles that you plan has.
Unlike other Medicare costs, Medicare Advantage premiums are decreasing in 2020. According to CMS, premiums costs have gone down 23 percent since 2018.
Need help with Medicare Insurance in Texas? Based in Harlingen, PTT Financial has licensed agents who are ready to assist. Contact us to learn more.