Have Part A Premiums or Deductibles Changed?
Among the 2020 Medicare changes were increases in Part A premiums, deductibles, and coinsurance.
Only about 1 percent of Medicare beneficiaries pay a Part A premium, which increased from $437 each month in 2019 to $458 each month in 2020. This figure applies to those who have fewer than 30 quarters (7.5 years) of work history.
For those with more than 30 quarters, but fewer than 40 (10 years), premiums are now $252 each month, up from $240 per month in 2019.
Part A deductibles, which cover the first 60 days you are in the hospital, have also gone up. If you are admitted to the hospital this year, it will cost you $1,408, up from $1,364 in 2019. Days 61 through 90 of hospitalization will run you $352 per day, up from $341 in 2019.
Have Part B Premiums and Deductibles Increased?
The standard premium for Part B plans also changed this year, increasing from $135.50 per month in 2019 to $144.60 per month in 2020. Some Medicare recipients may pay less than this full amount depending on their Social Security cost of living adjustment (COLA). Other individuals may be charged above the standard premium amount due to income-adjusted surcharges.
Medicare Advantage plans have been gaining in popularity in recent years as a comprehensive alternative to Original Medicare.
Part B deductibles have also increased to $198 in 2020. This is up significantly from $185 in 2019 and $183 in 2017 and 2018. This change was made to reduce costs to Medicare, as it encourages beneficiaries to only go to the doctor for medically necessary services or standard preventive care.