What is Medicare Part A & Part B?
For those of you that are turning 65 or new to Medicare, let me first explain what Part A and Part B of Medicare is. Parts A & B are commonly known as “Original Medicare”. Together they provide the foundation for your health insurance coverage.
Medicare Part A of Medicare provides “hospitalization insurance”. In other words, Part A covers your costs while you are in the hospital. Things such as semi-private hospital room, skilled nursing facility stays, short term home-health care and other hospital-related costs.
Medicare Part B we like to think of as “medical insurance” since it provides coverage for services including: doctors visits, outpatient procedures, x-rays, lab tests, flu shots, mammograms, preventative services, and much more. Additionally, Part B can also cover more expensive services such as radiation, chemotherapy, and drugs administered in a clinical setting; for instance, injections for insulin or osteoporosis, etc.
Now that you understand what Parts A & B of Medicare covers, let’s get into the Medicare costs for 2020. Each year, Medicare premiums, deductibles, and copayments fluctuate, and are adjusted according to the Social Security Act.
What is Medicare Part D?
Medicare Part D or sometimes known as “Prescription Drug Coverage” or “RX Drug Coverage” is coverage for your prescription drug medications. Which is regulated by Medicare, and sold by private insurance companies to help cover the costs of your medications.
Part D plans can vary in cost and by the drugs they cover. Many different insurance companies offer Part D drug plans, and it is not uncommon to have 20-30 different drug plans available where you live.
Now that you understand what Parts A, B and D of Medicare covers, let’s get into the Medicare costs for 2020. Each year, Medicare premiums, deductibles, and copayments fluctuate, and are adjusted according to the Social Security Act. Let’s start with Medicare Part B costs…
2020 Medicare Cost for Part B
Part B Premiums
You pay a premium each month for Medicare Part B based on your income level. For 2020, most people, you will pay the standard premium amount of $144.60 per month (an increase from 2019, which was $135.50 per month). However, if you fall under the approximate 7% of people with Part B coverage and your income is over $87,000 (single) or $174,000 (married), then you may pay a higher premium.
See the chart below to find out what your premium will be in 2020.
Part B Deductibles
The annual deductible for Medicare Part B is $198 (an increase from 2019, which was $185 annually). After you met your deductible, Medicare pays 80% of any Part B approved services. You are responsible for paying the remaining 20%. One very important thing to remember is there is no cap on your out-of- pocket costs under Medicare Part B, which means if your total bill was $100,000, you would owe $20,000 or more as the bill rises.
2020 Medicare Costs for Part A
Part A Premiums
Approximately 99% of Medicare beneficiaries do not pay a premium for Medicare Part A since they have worked and paid taxes for at least 40 quarters (10 years). An easy rule of thumb is if you are eligible for Social Security Benefits, then you should be eligible for Medicare Part A at no cost.
People who have at least 30 quarters of work experience (or married to someone with at least 30 quarters work experience) may buy Part B at a reduced monthly rate of $252 per month in 2020 (an increase from 2019, which was $240 per month).
If you have worked less than 30 quarters, you will have to pay the full premium amount of Part A at $458 per month in 2020 (an increase from 2019, which was $437 per month)
Part A Deductibles
Overall, your Medicare Part A will cover a great amount of your expenses. However, you are responsible for some cost-sharing as well.
Any expenses you incur while an inpatient in the hospital would fall under Part A of Medicare. You would have to pay a $1,408 annual deductible (an increase from 2019, which was $1,364 annually) before your Medicare Part A hospitalization coverage begins.
See the chart below to see what your shared expenses would be when using your coverage.
2020 Medicare Costs for Part D
Similarly to Medicare Part B, Medicare costs for Part D is dependent based on your income. Additionally, your Medicare Part D premiums vary by plan and by state. Each state might have up to 30 different available plans to choose from.
Typically, you can find plans starting around $10 – $15 in most states, but it ultimately depends on the state and the carrier you choose.
Medicare 2020 Part D Premiums by Income
Check out the table below to review what your Medicare costs for Part D drug plans will be in 2020
What Will Medicare Cost ME?
We understand reading all these numbers can be a bit overwhelming and confusing for most. Trying to make sense out of how they affect you can be a bit challenging. But don’t worry… Our licensed insurance agents are here to help make sense out of what this all means to you, and your specific situation.
We can assist you with determining what your potential Medicare costs will be for the 2020 year just in a quick 5-minute phone call. Whether you are currently on Medicare, new to Medicare, or soon to be 65, we can help you!
Call 1-(888)-321-6361 to speak with a friendly licensed insurance agent today or fill out our free online quote form HERE and we will be in contact with you shortly!