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CMS releases Medicare Part A and B values for 2020

CMS releases Medicare Part A and B values for 2020

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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

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