It’s the time of year when Medicare announces changes that affect Medicare beneficiaries and the insurance plans they own. Like most years, the 2020 changes are incremental, but larger than what we saw for 2019. We will discuss them below and how they will affect your out of pocket exposure.
(It’s important to note that when the officials at CMS (Centers for Medicare and Medicaid Services) make changes, it affects all insurance plans – both new and old. It doesn’t matter when you purchased your coverage – all plans must abide by any new cost sharing rules.)
2020 Medicare Premiums, Deductibles & Coinsurance
| MEDICARE FEATURE |
2019 AMOUNT | 2020 AMOUNT | $ INCREASE |
|---|---|---|---|
| Medicare Part B Premiums (For Most People) | $135.50 | $144.60 | $9.10 |
| Medicare Part B Premiums (New Enrollees) | $135.50 | $144.60 | $9.10 |
| Part A Deductible (Inpatient Hospital) | $1,364 | $1,408 | $44 |
| Part B Deductible (Physician’s Services) | $185 | $198 | $13 |
| Hospital Coinsurance Days 61-90 | $341 | $352 | $11 |
| Hospital Coinsurance Days 91-150 | $682 | $704 | $22 |
| Skilled Nursing Facility Coinsurance | $170.50 | $176.00 | $5.50 |
| High Deductible Plan F | $2,300 | $2,340 | $40 |
Medicare Part B Premiums in 2020
Medicare Part B premiums will be increasing for many Medicare beneficiaries in 2020 due to the increase in Social Security monthly payments.
Those who fall under the “hold-harmless” provision, by rule, must have their Part B premiums offset by increases in Social Security payments. Some will have their premiums raised to $144.60 a month while others will see smaller increases based on a sliding scale.
Those who are new to Medicare in 2020 will pay $144.60 per month – a $9.10 increase from 2019. This amount will be more for high income earners. The Income Related Monthly Adjustment Amount (IRMAA) requires individuals making more than $85,000 – and couples filing jointly making over $170,000 – to pay more for Part B coverage. There are four tiers to the IRMAA payment schedule. You can view them here.
Medicare Part A and Part B Deductibles
Most of our clients ask about the Medicare Part B deductible each year. The good news: The Medicare Part B deductible for 2020 is $198 – a $13 increase from 2019. This is an important amount for those who own Medicare supplements not covering the Part B deductible – like Plan G and Plan N.
Plans G and N continue to be some of our most popular policies because of the small Part B deductible. In many cases, the lower premiums with G and N more than make up for the deductible and/or office copay amounts.
Like most years, the Part A deductible (Inpatient Hospital Care) is only increasing slightly to $1,408 – a year over year increase of $44. Most Medicare supplements cover the Part A deductible, so this figure is not quite as important. The most popular policies, Plans F, G and N, all cover this gap.
What is the 2020 Plan G & Plan F High Deductible Amount?
High Deductible Plan F and G are also popular due to their low premiums and known out of pocket exposure. The deductible will only be increasing slightly to $2,340 in 2020. That’s a modest $40 increase from 2019.
Plan F, G and J are the only plans currently offered that come in a high deductible version. Plan J hasn’t been available for many years – and Plan F will only be available for those who were Medicare eligible before 2020.
High Deductible Plan G will be the only plan available for those who are new to Medicare in 2020 and beyond. In many states, HD Plan G will offer the lowest monthly premiums of any Medicare supplement for sale.
Medicare Supplement Plans K and L Maximums
Plans K and L were introduced in 2010 as part of the Medicare Modernization Act. In our minds, these plans most closely resemble Medicare Advantage policies. They have larger out of pocket exposure than more traditional plans like F, G and N. Unlike Medicare Advantage, Plans K and L do not have network restrictions, however.
CMS announced moderate increases for 2020 to the out of pocket maximums for these two unique plans. The out of pocket will be $5,880 for Plan K and $2,940 for Plan L. We don’t see a lot of interest in these two plans at out agent as others (including many Advantage plans) offer more value when comparing benefits and costs.
Contact Us For Quotes And Assistance
We are a full service, independent insurance agency. We license direct with all of our carriers and can help you enroll (at no additional cost) with the Medicare insurance plan the best fits your needs and budget.
We work with many, many carriers offering Medicare supplement, Medicare Advantage and Part D prescription drug coverage. Contact us today to compare your best options.