Medicare Rate Increase 2020 | What You Need to Know

Original Medicare (Part A and Part B) includes some out-of-pocket costs such as deductibles and monthly premiums. Your Medicare Part B premium rate can increase based on your income.

The standard Part B premium is $144.60 in 2020.

Man calculating his finances

Medicare rates, deductibles and copays

Every year, the Centers for Medicare and Medicaid determine rates for Medicare Part B premiums. If your reported income two years prior is above a specific threshold, you may have to pay more than the standard premium.

Though most beneficiaries will not pay a monthly premium for Medicare Part A, some people may have to pay up to $458 per month in 2020.

Both Medicare Part A and Part B have deductibles and coinsurance.

  • In 2020, the Medicare Part A deductible for inpatient hospital care is $1,408 per benefit period.

    Inpatient hospital stays that last longer than 60 days also require daily coinsurance payments.

  • The Medicare Part B deductible for 2020 is $198 per year.

    After your deductible is met, you typically have to pay a 20% coinsurance of the Medicare-approved amount for doctor’s office visits, outpatient therapy and medical equipment.

Original Medicare does not typically cover prescription drugs.

If you want Medicare prescription drug coverage, you can consider enrolling in:

  • A Medicare Advantage (Medicare Part C) plan that includes prescription drug coverage

  • A Medicare Part D prescription drug plan

You can learn more about Part D plans available where you live and enroll in a Medicare prescription drug plan online in as little as 10 minutes when you visit MyRxPlans.com.1

Managing your Medicare costs

Medicare Advantage plans may help some enrollees save money on health care costs.

All Medicare Advantage plans offer the same basic benefits available through Original Medicare, and some MA plans offer additional benefits that can include:

  • Dental care coverage
  • Vision care coverage
  • Prescription drug cost coverage
  • Health and wellness programs

Medicare Advantage plans also include an annual out-of-pocket spending limit, which could help protect you from Medicare costs that can add up quickly when you have a serious illness or injury.

Medicare Advantage plans are sold by private insurers, so monthly costs and rate increases will vary based on your plan.

To learn more and to select the right Medicare Advantage plan for you, call today to speak with a licensed insurance agent.

 

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