Medicare makes changes to its costs and benefits almost every year and there are quite a few in 2020. Some, such as the elimination of two of the most popular Medicare Supplement Plans, have been in the works for a long time.
Other Medicare changes, such as the expanded telemedicine benefits, were approved in response to the coronavirus pandemic.
If you’re trying to make sense of your Medicare benefits in 2020, here’s what you need to know.
Medicare changes at a glance:
- Premiums for Part A and Part B have increased slightly in 2020
- Deductibles for Part A and Part B have increased slightly in 2020
- Average premiums for Medicare Advantage are lower in 2020
- Average premiums for Medicare Part D are lower in 2020
- People eligible for Medicare as of January 1, 2020, won’t be able to buy Plan C or Plan F
- Expanded benefits for Original Medicare
- New benefit options for Medicare Advantage
What are Medicare premiums for 2020?
Premiums for both Part A and Part B increased slightly in 2020. If you are one of the few who doesn’t qualify for premium-free Part A, your new Part A premium is $458. The standard Part B premium increased by about $9 to $144.60.
If you pay the income-related monthly adjustment amount (IRMAA) with your Part B premium, you’ll be pleasantly surprised. The adjustment amounts have decreased slightly compared to 2019, and the income threshold has increased from $85,000 to $87,000 for singles and $174,000 for married couples.
Remember, the IRMAA is assessed based on your 2018 tax return, so if your income has changed significantly in the last year, be sure to let Medicare know. You may be able to have the IRMAA removed.
What are Medicare deductibles for 2020?
The $44 hike in the Part A deductible is one of the biggest Medicare cost changes for 2020. The new Part A deductible is $1,408, up from $1,364 in 2019. Remember, the Part A deductible is per benefit period, not per calendar year, so you can pay the Part A deductible several times a year if you have multiple hospitalizations.
