New Medicare Costs

About a month ago, Social Security announced that 2020 would see a cost-of-living increase of 1.6%.
CMS just released new costs for 2020, which you will be very interested in. This includes a new means testing table of costs.

The 2020 baseline Part B premium will be $144.60. (means tested amounts are in table below)

The 2020 Medicare Part B deductible will be $198. Part B is still an 80/20 coinsurance split under Original Medicare.

Here are the Part A deductibles and coinsurances for 2020 compared to 2019::

Part A Deductible and Coinsurance Amounts for Calendar Years 2019 and 2020 by Type of Cost Sharing

2019

2020

Inpatient hospital deductible

$1,364

$1,408

Daily coinsurance for 61st-90th Day

$341

$352

Daily coinsurance for lifetime reserve days

$682

$704

Skilled Nursing Facility coinsurance

$170.50

$176

Here is the means testing table for 2020. Remember — double the income amount if you file taxes Married/Filing Jointly.

These rates are individual, and represent the actual Part B premium based on your 2018 income tax forms for MAGI (modified adjust gross income)::

Part B Premiums for 2020 — IRMAA (Income-Related Monthly Adjustment Amount)

Beneficiaries who file

individual tax returns with income:

Beneficiaries who file

joint tax returns with income:

Income-related monthly adjustment amount

Total monthly premium amount

Less than or equal to $87,000

Less than or equal to $174,000

$0.00

$144.60

Greater than $87,000 and less than or equal to $109,000

Greater than $174,000 and less than or equal to $218,000

57.80

202.40

Greater than $109,000 and less than or equal to $136,000

Greater than $218,000 and less than or equal to $272,000

144.60

289.20

Greater than  $136,000 and less than or equal to $163,000

Greater than $272,000 and less than or equal to $326,000

231.40

376.00

Greater than $163,000 and less than $500,000

Greater than $326,000 and less than $750,000

318.10

462.70

Greater than or equal to $500,000

Greater than or equal to $750,000

347.00

491.60

In the same vein, here are the 2020 Part D IRMAA add-on amounts, based on 2018 income::

Part D Premium add-ons for 2020 (add this amount to your 2020 Part D premium)

For those folks that want Medicare, but do not have the requisite hours for eligibility, there is a buy in amount for Part A. If you know of someone in this situation, have them call me for details.

R Allan Jensen

11/13/2019
AJ@InsuranceProfessor.net
303.912.5490

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