Medicare premiums, deductibles and coinsurance amounts change annually. Here’s a look at some of the costs that will apply in 2020 if you’re enrolled in Original Medicare Part A and Part B.
Medicare Part B premiums
According to the Centers for Medicare & Medicaid Services, most people with Medicare who receive Social Security benefits will pay the standard monthly Part B premium of $144.60 in 2020. However, if your premiums are deducted from your Social Security benefits, and the cost-of-living increase in your benefit payments for 2020 will not be enough to cover the Medicare Part B increase, then you may pay less than the standard Part B premium.
People with higher incomes may pay more than the standard premium. If your modified adjusted gross income as reported on your 2018 federal income tax return is above a certain amount, you’ll pay the standard premium amount and an Income Related Monthly Adjustment Amount, which is an extra charge added to your premium, as shown in the following table.
Other Medicare costs
The following out-of-pocket costs for Original Medicare Part A and Part B apply in 2020:
- Part A deductible for inpatient hospitalization: $1,408 per benefit period
- Part A premium for those who need to buy coverage: up to $458 per month (most people don’t pay a premium for Medicare Part A)
- Part A coinsurance: $352 per day for days 61 through 90, and $704 per “lifetime reserve day” after day 90 (up to a 60-day lifetime maximum)
- Part B annual deductible: $198
- Skilled nursing facility coinsurance: $176 for days 21 through 100 (for each benefit period)
*Past performance is not an indicator of future results. This material is not financial advice or an offer to sell any product. The statements contained herein are solely based upon the opinions of Elevage Partners, LLC (“Elevage”). Elevage is a registered investment adviser. More information about the firm can be found in its Form ADV Part 2, which may be requested by calling (877) 922-8243 or visiting http://www.adviserinfo.sec.gov. The information contained herein is derived from sources we believe to be reliable, but which we have not independently verified. Elevage assumes no responsibility for errors, inaccuracies or omissions in this information. Elevage reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs. The information provided in this report should not be considered a recommendation to purchase or sell any particular security. There is no assurance that any securities discussed herein will remain in an account’s portfolio at the time you receive. It should not be assumed that any of the securities transactions, holdings or sectors discussed were, or will prove to be profitable, or that the investment recommendations or decisions Elevage makes in the future will be profitable or will equal the investment performance of the securities discussed herein.ELV-17-02