CMS has announced the 2020 Medicare Part A and B premium, deductible, and coinsurance amounts. As in prior years, there are increases in these amounts. The 2020 Medicare Part D parameters were released earlier this year. (See our June 17, 2019 FYI.)
Download this FYI Alert as a printable PDF
Medicare Part A
On November 8, the Centers for Medicare & Medicaid Services (CMS) released the Medicare Part A premium amounts and the deductible and coinsurance amounts for 2020. It also provided a fact sheet with additional information.
Premiums
Approximately 99% of Medicare beneficiaries do not pay a Part A premium because they have at least 40 quarters of Medicare-covered employment. For those individuals who pay a premium, the Medicare Part A premiums for the 12-month period beginning on January 1, 2020 are as follows:
| Premium type |
2020 |
2019 |
Change |
| Premium to purchase coverage for individuals not otherwise eligible for Medicare Part A and certain disabled individuals |
$458 |
$437 |
4.8% |
| Premium for certain individuals entitled to a reduced monthly premium (who had at least 30 quarters or were married to someone with at least 30 quarters of Medicare-covered employment) |
$252 |
$240 |
5.0% |
Deductible and coinsurance amounts
The Medicare Part A deductible and coinsurance amounts for the 12-month period beginning on January 1, 2020 are as follows:
| Deductible and coinsurance type |
2020 |
2019 |
Change |
| Deductible for up to 60 days of Medicare-covered inpatient hospital care |
$1,408 |
$1,364 |
3.2% |
| Daily coinsurance for 61st through 90th day of hospitalization |
$352 |
$341 |
3.2% |
| Daily coinsurance for lifetime reserve days |
$704 |
$682 |
3.2% |
| Daily coinsurance for 21st through the 100th day of extended care services in skilled nursing facility |
$176.00 |
$170.50 |
3.2% |
Medicare Part B
CMS also released a notice that sets out the Medicare Part B monthly premium rates and annual deductible amounts for 2020.
The standard monthly premiums for Medicare Part B for 2020 are as follows:
| Premium type |
2020 |
2019 |
Change |
| Standard monthly premium |
$144.60 |
$135.50 |
6.7% |
Some Part B enrollees benefit from a “hold harmless” provision that protects them from any increase in Part B premiums (typically deducted from Social Security checks) that would effectively reduce their monthly Social Security payments.
The following individuals are not protected by the “hold harmless” provision:
- New Medicare enrollees in 2020
- Higher-income Medicare beneficiaries
- Medicare beneficiaries dually eligible for Medicare and Medicaid
- Medicare Part B enrollees not receiving Social Security benefits
The 2020 Medicare Part B monthly premiums based on income tax filing status and income are:
| Individual filing status* | Married filing jointly status* |
2020 monthly premium |
2019 monthly premium |
Change |
| Income up to $87,000 | Income up to $174,000 |
$144.60 |
$135.50 |
6.7% |
| $87,001 – $109,000 | $174,001 – $218,000 |
$202.40 |
$189.60 |
6.8% |
| $109,001 – $136,000 | $218,001 – $272,000 |
$289.20 |
$270.90 |
6.8% |
| $136,001 – $163,000 | $272,001 – $326,000 |
$376.00 |
$352.20 |
6.8% |
| $163,001 – $499,999 | $326,001 – $749,999 |
$462.70 |
$433.40 |
6.8% |
| $500,000 or more | $750,000 or more |
$491.60 |
$460.50 |
6.8% |
* Income ranges for 2019 and 2020 differ
| Married filing separately, lived with spouse during tax year* |
2020 monthly premium |
2019 monthly premium |
Change |
| Income up to $87,000 |
$144.60 |
$135.50 |
6.7% |
| $87,001 – $412,999 |
$462.70 |
$433.40 |
6.8% |
| $413,000 or more |
$491.60 |
$460.50 |
6.8% |
* Income ranges for 2019 and 2020 differ
Finally, the Medicare Part B annual deductible for the 12-month period beginning on January 1, 2020 is as follows:
| Deductible type |
2020 |
2019 |
Change |
| Medicare Part B |
$198 |
$185 |
7.0% |
Volume 42 | Issue 96