Are you a Medicare beneficiary wondering about changes to your coverage and costs for the coming year? The Centers for Medicare & Medicaid Services (CMS) has announced updates for Medicare in 2020, including a significant standard premium increase. Let's dive into the details and help you understand what these changes mean for you.
Medicare Premium Increases in 2020
One of the most notable changes for 2020 is the increase in Medicare premiums. The standard monthly premium for Medicare Part B (medical insurance) will rise by 7% to $144.60, up from $135.50 in 2019. This increase will affect around 70% of Medicare beneficiaries who have their premiums deducted from their Social Security benefits and are protected from increases that exceed certain thresholds.
For those who are not protected, the new income-related monthly adjustment amounts (IRMAA) for Medicare Part B and Part D (prescription drug plans) will be as follows:
| Income Level | Part B IRMAA | Part D IRMAA |
|---|---|---|
| $87,000 - $118,000 (single) | $144.60 | $12.20 |
| $118,001 - $148,000 (single) | $170.10 | $17.40 |
| Above $148,000 (single) | $259.10 | $33.90 |
| $174,000 - $214,000 (married) | $170.10 | $17.40 |
| Above $214,000 (married) | $259.10 | $33.90 |
Other Medicare Changes for 2020
In addition to premium increases, there are other changes to Medicare in 2020 that may affect your coverage and costs:
- Medicare Advantage (Part C) plans: More than 2,500 Medicare Advantage plans will be available in 2020, with an average monthly premium of $23, down from $26 in 2019.
- Medicare Prescription Drug Plans (Part D): The average monthly premium for stand-alone Part D plans will decrease by 14% to $30, down from $34.70 in 2019.
- Medicare cost-sharing: The annual deductible for Medicare Part A (hospital insurance) will increase by $44 to $1,408, and the daily coinsurance for hospital inpatient days 61-90 will rise by $10 to $352.
What Should You Do?
With these changes taking effect on January 1, 2020, it's essential to review your Medicare coverage and understand how these updates may impact your costs. Here are some steps you can take:
- Check your Medicare Summary Notice (MSN) to see if your premiums will be automatically adjusted based on your income.
- Compare Medicare Advantage and Part D plans to ensure you're enrolled in the most cost-effective option for your needs.
- Contact your local State Health Insurance Assistance Program (SHIP) for free, personalized assistance with Medicare.
Stay informed and proactive about your Medicare coverage to make the best decisions for your health and your budget in the coming year.
