The Centers for Medicare & Medicaid Services have released the Medicare costs for 2021. Please see our most recent article, 2021 Medicare Part A and Part B Premiums and Deductibles, for current facts and figures.
CMS just released their numbers for 2020 premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs. Let’s take a look and see how these numbers might affect your clients.
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How Much Will Medicare Cost in 2020?
On November 8, 2019, CMS announced that the monthly Medicare Part B premium will be $144.60 for 2020, an increase of $9.10 from $135.50 in 2019. The annual deductible for Medicare Part B beneficiaries increased $13, from $185 in 2019 to $198 in 2020.
As for the Part A premium, CMS will raise it from $437 per month to $458 per month next year, which is a $21 increase from 2019. (Note: Most Medicare beneficiaries are exempt from paying the Medicare Part A premium since they or their spouse paid into Medicare while working.) The 2020 Part A deductible is $1,408 — $44 more than in 2019. Part A coinsurance amounts will also increase in 2020 as shown in this table.
|Type of Cost Sharing||2019||2020|
|Inpatient Hospital Deductible||$1,364||$1,408|
|Daily Coinsurance for Days 61 to 90||$341||$352|
|Daily Coinsurance for Lifetime Reserve Days||$682||$704|
|Skilled Nursing Facility Coinsurance||$170.50||$176|
If you have clients who are considered “held harmless,” they will pay less than the standard Part B premium. (The “Hold Harmless Provision” states that certain beneficiaries’ Part B premium increases cannot exceed the increase in their Social Security benefits.) Clients who have higher incomes will be facing another round of high income-related surcharges for their Part B premiums.
Here’s how your clients’ annual incomes will affect their Medicare Part B monthly premiums for 2020.
|File Individual Tax Return||File Joint Tax Return||Monthly Adjustment||2020 Part B Monthly Premium|
|$87,000 or Less||$174,000 or Less||$0.00||$144.60|
|$87,001 to $109,000||$174,001 to $218,000||$57.80||$202.40|
|$109,001 to $136,000||$218,001 to $272,000||$144.60||$289.20|
|$136,001 to $163,000||$272,001 to $326,000||$231.40||$376.00|
|$163,001 to $500,000||$326,001 to $750,000||$318.10||$462.70|
|$500,001 or More||$750,001 or More||$347.00||$491.60|
|File Separate Tax Return from Spouse||Monthly Adjustment||2020 Part B Monthly Premium|
|$87,000 or Less||$0.00||$144.60|
|$87,001 to $413,000||$318.10||$462.70|
|$413,001 or More||$347.00||$491.60|
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Almost 61 million Medicare enrollees are enrolled in Medicare Part A, Part B, or both programs. Be sure you can answer your clients’ questions around these cost increases or help them reassess their coverage if needed.
Editor’s Note: Table information is from CMS’ 2020 Medicare Parts A & Premiums and Deductibles Fact Sheet. This post was originally published in November 2019. Please see the article listed at the top of this post for the most up-to-date information.