IMPORTANT:

2020 Medicare Changes Summary:

Starting January 1st, 2020:

  • The standard Part B Premium is $144.60/month 
  • Medicare Part B deductible increased to $198 per year 
  • Medicare Part A premiums, (if applicable) deductible, and coinsurance are higher in 2020.
  • Medigap (Medicare Supplement) Plan C and Plan F are no longer available for purchase by newly eligible Medicare beneficiaries.
  • The income brackets for high – Income premium adjustments for Medicare Part B and D have been adjusted for inflation.  “High – Income” starts at $87,000 for a single person, instead of $85,000.  
  • Part D coverage gap (commonly known as the donut hole) is more affordable.  Once you enter the coverage gap, brand name and generic drugs will be limited to a 25% co- insurance. Some people never reach the coverage gap, as the threshold is $4020.

**Continue scrolling down for part specific changes for Medicare in 2020**

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MEDICARE SUPPLEMENT INSURANCE (MEDIGAP) POLICY:  HELPS WITH COSTS THAT MEDICARE DOES NOT COVER

Medicare Supplement Insurance (Medigap) helps pay some of the health care costs that Original Medicare (Part A and Part B) do not cover, such as:

  • Copayments
  • Coinsurance
  • Deductibles
  • Medicare will pay its share of the Medicare-approved amount for covered health care costs.
  • Then your Medicare Supplement (Medigap) Policy will pay its share
  • We can assist you in obtaining a Medicare Supplement (Medigap) Insurance policy.

2020 Medicare Part A Changes:

Starting January 1st, 2020:

  • Medicare Part A inpatient deductible for hospital admittance has increased from $1,364 (in 2019) to $1,408 (in 2020) for each benefit period.
  • The Medicare Part A premium for people with 30+ (but less than 40) quarters of work history, has increased from $240/month (in 2019) to $252/month (in 2020).
  • The Medicare Part A premium for people with fewer than 30 quarters of work history, is increasing from $437/month (in 2019) to $458/month (in 2020).

      PART A:  HOSPITALIZATION INPATIENT DEDUCTIBLE AND COINSURANCE

    • Part A has a deductible that applies to each benefit period (rather than a calendar year deductible like Part B or private insurance plans) and is increasing from $1,364 (in 2019) to $1,408 (in 2020)*. *This increase applies to all enrollees, although many enrollees have Medicare Supplement (Medigap) Insurance coverage that pays all or part of the Part A deductible.

    • Days 1-60: $0 coinsurance for each benefit period.  

    • Days 61-90: $352 coinsurance per day of each benefit period.  In 2020, it is $352 per day.   (up slightly from $351 per day in 2019).    

    • Days 91 and beyond: The coinsurance per each “lifetime reserve day” after day 90 for each benefit period is $704 coinsurance per day in 2020 (up from $682 per day in 2019). (up to 60 days over your lifetime)

    • As in 2019, for 2020 the recipient will pay all costs beyond lifetime reserve days.

        • PART A:  SKILLED NURSING FACILITIES

        • Medicare only covers skilled nursing facility care if the patient had an inpatient hospital stay of at least three days before being transferred to a skilled nursing facility. There is a coinsurance payment that applies to days 21 through 100 in a skilled nursing facility, and for days 101 and beyond, all costs must be paid by the recipient.
        • Days 1-20: $0 for each benefit period
        • Days 21-100: $176  (up from $170.50 a day in 2019) coinsurance per day of each benefit period.  
        • Days 101 and beyond: all costs must be paid by recipient.

        2020 Medicare Part B Changes:

        Starting January 1st, 2020:

        • The standard monthly premium of Medicare Part B increased to $144.60/month in 2020. (Up from $135.50 in 2019).  
        • The annual deductible for Medicare Part B will be $198 per year in 2020. (up from $185 in 2019)
        • Most people pay the standard monthly premium amount ($144.60).  If your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount, you may pay an Income Related monthly Adjustment Amount.   The Income Related Monthly Adjustment Amount (IRMAA) brackets have been changed as follows.

        2020 Medicare Part D Changes:

        Starting January 1st, 2020:

        • The Part D monthly premium varies by plan.  
        • For stand-alone Part D prescription drug plans, average basic premiums increased to a projected average premium of $32.74/month, up from $32.50/month.*

        *It is important to understand that the average basic premium is less than the average enhanced plan premium, so overall average Part D premiums are higher than the average basic premiums.

        • Most Medicare drug plans have a coverage gap (also called the “donut hole”).  This means there is a temporary limit on what the drug plan will cover for drugs.  Not everyone will enter the coverage gap. The coverage gap begins after you and your drug plan have spent a certain amount on covered drugs
        • In 2019, the coverage gap applied after an initial amount of $3820 was spent. In 2020, the coverage gap applies after an initial amount of $4020 is spent.  The good news is that the Affordable Care Act (ACA) has been gradually closing the coverage gap in Medicare Part D.  The percentage is set by Medicare. In 2019, once the coverage gap started, Medicare members paid 25% for brand-name prescriptions and 37% for generic medications.  Now, in 2020, once the coverage gap starts, Medicare members only have to pay 25% for both brand-name and generic prescriptions.