New Medicare Premiums for 2020

20 minute read| Updated for September, 2020

The Medicare premiums for 2020 have changed compared to 2019, and there are increased premium rates you should know about before assessing your health care needs.

Medicare Premiums to Expect in 2020 

Medicare premium costs in 2020 have been released by the Centers for Medicare & Medicaid Services (CMS). CMS is a federal government agency that’s tasked with the administration, distribution and oversight of the Medicare and Medicaid program.

In preparation for these new changes in 2020, CMS has broken down the Medicare premium rates and shared deductible information, making it clear who will pay for what based on what circumstances apply to each individual.

Perform research on your own individual Medicare Advantage plan, then compare rates of other plans that you discover in your research.

Medicare Part A Premium – Hospital Benefit

More than likely, you won’t have to pay a monthly Medicare premium for Part A because while you’ve been working, Medicare taxes have been taken out of your paychecks (if you’re a tax-paying United States citizen). If that’s not the case for you, then you could be paying up to $458 per month for your Medicare Part A premium.

Hospital Stays

For stays in the hospital, the following would apply in 2020:

  • For each benefit period, a $1,408 deductible applies.
  • During the initial 60 days of each benefit period, there’s no additional cost.

Skilled Nursing Facility Stays

For stays in skilled nursing facilities, the following would apply in 2020:
  • During the initial 20 days of each benefit period, there’s no additional cost.
  • During days 21–100 for each benefit period, a rate of $176 per day applies.

Medicare Part B Premium – Medical Benefit

There are multiple ways to determine the cost of your monthly Medicare Part B premium.

  • The standard Medicare Part B premium for 2020 is $144.60 or higher based on your income.

You’ll pay the standard monthly Medicare Part B premium amount or higher, based on your income from 2018, if the following applies to you. 

  • You’re enrolling in 2020 for the first time for Medicare Part B
  • Your Adjusted Gross Income on your tax return from 2018 is at a specified amount
  • You don’t receive benefits from the Social Security Administration
File individual tax return File joint tax return File married and separate tax return Monthly premium
$87,000 or less $174,000 or less $87,000 or less $144.60 (standard premium)
Above $87,000 up to $109,000 Above $174,000 up to $218,000 Not applicable $202.40
Above $109,000 up to $136,000 Above $218,000 up to $272,000 Not applicable $289.20
Above $136,000 up to $163,000 Above $272,000 up to $326,000 Not applicable $376.00
Above $163,000 and less than $500,000 Above $326,000 and less than $750,000 Above $87,000 and less than $413,000 $462.70
$500,000 or above $750,000 and above $413,000 and above $491.60
 
Source: Centers for Medicare & Medicaid Services

Medicare Part C Premium – Medicare Advantage

The monthly Medicare Part C premium varies from one Medicare Advantage plan to the next. As such, perform research on your own individual Medicare Advantage plan, and compare rates of other plans that you discover in your research.

Medicare Part D Premium – Drug Benefit

The monthly Medicare Part D premium varies from one prescription drug plan to the next. However, when determining the cost of your Medicare Part D premium, know that it’s based on your income in 2018.

Individual tax return yearly income Joint tax return yearly income File married and separate tax return Monthly premium
$87,000 or less $174,000 or less $87,000 or less Your plan premium
Above $87,000 up to $109,000 Above $174,000 up to $218,000 Not applicable $12.20 + your plan premium
Above $109,000 up to $136,000 Above $218,000 up to $272,000 Not applicable $31.50 + your plan premium
Above $136,000 up to $163,000 Above $272,000 up to $326,000 Not applicable $50.70 + your plan premium
Above $163,000 and less than $500,000 Above $326,000 and less than $750,000 Above $87,000 and less than $413,000 $70.00 + your plan premium
$500,000 or above $750,000 and above $413,000 and above $76.40 + your plan premium

Source: Centers for Medicare & Medicaid Services

Although Medicare premiums for 2020 have increased, now is the time to take a look at your income from 2018 to determine the cost of your Medicare premiums

Medicare Costs – 2019 vs. 2020

Now that you know what Medicare premium payments you have to pay in 2020, how much of an increase are you actually paying from last year?

  • In 2019, the monthly Medicare Part B standard premium was $135.50 — a difference of $9.10 to total a $144.60 Medicare premium for 2020.
  • In 2019, the Medicare Part A deductible cost $1,364 — a difference of $44 to total a $1,408 deductible for Medicare Part A in 2020.

Although Medicare premiums for 2020 have increased, now is the time to take a look at your income from 2018 to determine the cost of your Medicare premiums. It would also be the perfect time to review and compare various Medicare Part C and D plans to ensure you’re picking the right one that fits with you and your lifestyle.

Still have more questions about these new Medicare premiums rates for 2020? Speak to a licensed professional and review the 2020 Medicare premium rates for different Medicare benefits.