Every year Medicare costs can change. Costs for the upcoming year are announced in the late fall, and the new costs go into effect January 1.
What is the Medicare Part B Premium for 2020?
The standard monthly Medicare Part B premium for 2020 is $144.60, up from $135.50 in 2019. Medicare Part B helps pay for doctor visits and outpatient care.
Most people will pay the standard Part B premium amount, but you could pay more based on your income. Medicare uses your reported income from two years ago to determine what you’ll pay.
Medicare adds an income-related monthly adjustment amount (IRMMA) to Part B premiums for individuals with an adjusted gross income over $87,000 and for couples with income over $174,000. High earners could pay up to $491.60 per month for Part B in 2020.
Other Part B costs include a deductible and coinsurance for those who have Original Medicare (Parts A & B). The 2020 Part B deductible is $198.
What is the Medicare Part A Deductible in 2020?
The Medicare Part A deductible for 2020 is $1,408 per benefit period, up from $1,364 in 2019. A benefit period begins the day you’re admitted to the hospital and ends when you’ve been out for 60 days in a row. The deductible covers up to 60 days in the hospital. After that you pay daily copays.
Medicare Part A covers hospital and inpatient care.
If you have a Medicare Advantage plan (Part C), the Part A deductible and other Part A costs usually won’t apply. Each plan sets its own cost-sharing terms for hospitalizations. For example, you may have daily copays for a set number of days or a flat cost per hospitalization. After that, plans usually pay 100% of hospital costs. Check plan details for exact costs.
Explore Medicare Coverage Choices
Understand your coverage options and what fits your health care needs and budget.
The Medicare Part D donut hole closes on January 1, 2020, but it’s not exactly going away. The donut hole – also called the “coverage gap” – is still one of the four Medicare Part D payment stages.
The donut hole is considered closed because you will no longer pay more for your drugs while you’re in it. You will pay the same amount for your drugs from the initial payment stage through the donut hole. In 2020, you will pay no more than 25% of the cost for both brand-name and generic drugs in the donut hole.
You enter the donut hole once you and your plan have paid $4,020 for your drugs in 2020. You exit the donut hole when the total cost of your drugs for the year reaches $6,350.
The average Part D plan premium is expected to be about $32.74. You can get drug coverage through a standalone Part D plan or a Medicare Advantage plan.
Remember, the costs for Medicare can change each year. And the total costs you will have for your Medicare coverage will vary depending on the coverage you have along with the health care items and services you use.