2020 brings about some changes to Medicare’s Part A and B premiums, coinsurance and deductibles. While these Medicare costs will make up the majority of your spending, there are other Medicare costs, like Part B Excess Charges.
Check out 2021’s Medicare changes.
2020 Medicare Part B Premium and Deductible
Medicare Part B Premium 2020: $144.60*
Medicare Part B Deductible 2020: $198
*Most people pay this amount. See below for details on who pays more.
Medicare Part B Premium for higher earners
While the majority of 2020 Medicare Part B enrollees pay $144.60, you can actually pay more! Your Part B monthly premium is based on your income. The higher the income, the more you pay each month. Also, if you’re married but file separately, it can be very expensive.
Medicare Part B premium for those individual/married filed jointly
| Beneficiaries who file individual tax returns with income | Beneficiaries who file joint tax returns with income | Income-based extra monthly payment | Total monthly premium amount |
|---|---|---|---|
| Less than or equal to $87,000 | Less than or equal to $174,000 | $0.00 | $144.60 |
| Greater than $87,000 and less than or equal to $109,000 | Greater than $174,000 and less than or equal to $218,000 | $57.80 | $202.40 |
| Greater than $109,000 and less than or equal to $136,000 | Greater than $218,000 and less than or equal to $272,000 | $144.60 | $289.20 |
| Greater than $136,000 and less than or equal to $163,000 | Greater than $272,000 and less than or equal to $326,000 | $231.40 | $376.00 |
| Greater than $163,000 and less than $500,000 | Greater than $326,000 and less than $750,000 | $318.10 | $462.70 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | $347 | $491.60 |
Medicare Part B premium for those who are Married and live in the house but file separately on tax returns:
| Beneficiaries who are married and lived with their spouses at any time during the year, but who file separate tax returns from their spouses | Income-related monthly adjustment amount | Total monthly premium amount |
|---|---|---|
| Less than or equal to $87,000 | $0.00 | 144.60 |
| Greater than $87,000 and less than $413,000 | $318.10 | $462.70 |
| Greater than or equal to $413,000 | $347 | $491.60 |
2020 Medicare Part A Premium
Most seniors 65 and older** who are Medicare-eligible will not pay the Part A premium. You qualify for Part A premium-free, if you or your spouse has worked and paid taxes for 10 years. If you didn’t work those 40 quarters, you’ll pay for your Part A premium -and, it’s pricey!
**If you’re Medicare-eligible because of disability and under 65, Medicare Part A is always premium-free.
Check out the 2022 Medicare Part A & B Costs
| Medicare Part A Monthly Premium by Years Worked*** | ||
|---|---|---|
| 10 years/40 quarters or more | 7.5 – less than 10 years/30-39 quarters | less than 7.5 years |
| $0 | $252 | $458 |
***Medicare Part A premium is based on years you or your spouse worked and paid taxes.
Medicare Part A Deductible and Coinsurance 2020
Medicare’s Part A deductible and coinsurance are costly and have limitations without an out-of-pocket maximum.
The chart and footnotes should make the Part A deductible and coinsurance come to life.
| 2020 Part A Deductible and Coinsurance Cost-Sharing | ||
|---|---|---|
| Inpatient hospital deductible | $1,408**** | |
| Hospital coinsurance for 61st-90th Day | $352 per day | |
| 60 Hospital Lifetime reserve days***** | $704 per day | |
| Skilled Nursing Facility coinsurance day 21-100 | $176 per day | |
****Medicare’s Part A benefit period deductible starts over every single time you are out of the hospital for 60 days. There is no limit on how many times you can pay your deductible in one year.
*****You only get 60 additional days to use in a lifetime. With Medicare Part A after you use these “reserve” days, you have to pay 100% of the costs.
Medigap can save you from Medicare’s Part A&B Runaway Costs
As you can see from the charts above, Original Medicare leaves some significant holes in coverage. If you are looking to limit your financial exposure, you should consider a Medigap plan. These plans supplement Medicare by paying some or all of your Medicare copays, coinsurance and deductibles.
To get the most coverage, you’ll want to consider Medigap G. There are 8 standardized plans, so Medigap plans are easy to compare. Once you compare them, you’ll see why Plan G is the most popular with seniors.
Get a Medigap Quote Enroll in Medigap
Senior65.com Next Steps
If you want to find a plan that will help pay for the deductibles and coinsurance amounts not covered by Medicare, give us a call at 800-930-7956. We would be glad to discuss your options and help you select and enroll in a plan that meets your needs. There is never a cost or hidden fee to work with us.
You may also want to check out how Medicare is covering COVID-19.