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CMS Releases Medicare Part A and B Values for 2019

CMS Releases Medicare Part A and B Values for 2019

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Volume 41 | Issue 81

CMS has announced the 2019 Medicare Part A and B premium, deductible and coinsurance amounts. There is a small increase in Part A and Part B amounts. The 2019 Medicare Part D parameters were released earlier this year. (See our May 16, 2018 For Your Information.)

Medicare Part A

On October 12, the Centers for Medicare & Medicaid Services (CMS) announced the Medicare Part A premium, deductible and coinsurance amounts for 2019 and provided a fact sheet with additional background.

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, 2019 are as follows:

Premium Type 2019 2018 Change
Premium to purchase coverage for individuals not otherwise eligible for Medicare Part A and certain disabled individuals $437 $422 3.6%
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) $240 $232 3.4%

Deductible and Coinsurance Amounts

The Medicare Part A deductible and coinsurance amounts for the 12-month period beginning on January 1, 2019 are as follows:

Deductible and Coinsurance Type 2019 2018 Change
Deductible for up to 60 days of Medicare-covered inpatient hospital care $1,364 $1,340 1.8%
Daily coinsurance for 61st through 90th day of hospitalization $341 $335 1.8%
Daily coinsurance for lifetime reserve days $682 $670 1.8%
Daily coinsurance for 21st through the 100th day of extended care services in skilled nursing facility $170.50 $167.50 1.8%

 

Medicare Part B

The CMS announcement and fact sheet also included the Medicare Part B monthly premium rates and annual deductible amounts for 2019.

The standard monthly premiums for Medicare Part B for 2019 and 2018 are as follows:

Premium Type 2019 2018 Change
Standard monthly premium $135.50 $134.00 1.1%

 

About 3.5% of 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.

Comment: The following individuals are not protected by the “hold harmless” provision:

    • New Medicare enrollees in 2019
    • Higher-income Medicare beneficiaries
    • Medicare beneficiaries dually eligible for Medicare and Medicaid
    • Medicare Part B enrollees not receiving Social Security benefits

 

The 2019 Medicare Part B monthly premiums based on income tax filing status and income are:

Individual Filing Status Married Filing Jointly Status 2019 Monthly Premium 2018 Monthly Premium Change
Income up to $85,000 Income up to $170,000 $135.50 $134.00 1.1%
$85,001 – $107,000 $170,001 – $214,000 $189.60 $187.50 1.1%
$107,001 – $133,500 $214,001 – $267,000 $270.90 $267.90 1.1%
$133,501 – $160,000 $267,001 – $320,000 $352.20 $348.30 1.1%
$160,001 – $499,999 * $320,001 – $749,999 * $433.40 $428.60 1.1%
$500,000 or more * $750,000 or more * $460.50 $428.60 7.4%

* Income ranges changed from 2018 to 2019

 

Married Filing Separately, Lived with Spouse During Tax Year 2019 Monthly Premium 2017 Monthly Premium Change
Income up to $85,000 $135.50 $134.00 1.1%
$85,001 – $414,999 * $433.40 $428.60 1.1%
$415,000 or more * $460.50 $428.60 7.4%

* Income ranges changed from 2018 to 2019

 

Finally, the Medicare Part B deductibles for the 12-month period beginning on January 1, 2019 and January 1, 2018 are as follows:

Deductible Type 2019 2018 Change
Medicare Part B $185 $183 1.1%

 

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