AS SEEN ON

Talk to a live person! Angela is here Monday-Friday 8-4

417 Medicare Angela
Medicare & Retirement Planning in Springfield, MO

Springfield, MO

Medicare Part B – 2020 Premiums and Deductibles

Medicare Part B covers certain medical and health services not covered by Medicare Part A. Each year, Medicare rates are adjusted due to the Social Security Act. Last week, the Centers for Medicare & Medicaid Services announced the new 2020 rates:

 

Medicare enrollees can expect the Part B monthly premiums and the annual deductible to increase next year, which is largely due to rising spending on physician-administered drugs. These medications are covered under the Part B outpatient benefit and include many cancer drugs. Pharmacy drugs are covered by a different part of Medicare, the Part D prescription program. This spending then affects the Part B premiums and deductible, causing each to increase.

Medicare Part B - 2020 Premiums and Deductibles 1

 

The standard monthly premium for about 70% of Medicare Part B beneficiaries will increase from $135.50 in 2019 to $144.60 in 2020. The annual deductible for all Medicare Part B beneficiaries, which covers doctor visits and outpatient care, will increase from $185 to $198 in 2020.

 

The law currently requires Centers for Medicare & Medicaid Services to pay the average sales price for medications. CMS also pays physicians a percentage of a medication’s sale price. Drug companies are then incentivized to set prices higher, and physicians then prescribe more expensive drugs, as that leads to a higher Medicare payment.

 

For more than a decade, a beneficiary’s Part B monthly premium is based on his or her income. Please review the 2020 Part B total premiums for high income beneficiaries below:

 

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

Source: cms.gov

Please review the premiums for high-income beneficiaries who are married and lived with their spouse at any time during the taxable year, but file a separate return:

 

Beneficiaries who are married and lived with their spouses at any time during the year, but who file separate tax returns from their spouses:

Income-related monthly adjustment amount

Total monthly premium amount

Less than or equal to $87,000

$0.00

$144.60

Greater than $87,000 and less than $413,000

318.10

462.70

Greater than or equal to $413,000

347.00

491.60

Source: cms.gov

Just a reminder: The Annual Enrollment Period is going on now through December 7. Review your coverage to make sure you’re still in the right plan for 2020. For more information on the 2020 Medicare Part B premiums and deductible, call our office at (417) 755-7050.

Hi, I’m Jeremy, and I’ve been helping Medicare-eligible clients in Springfield for over 15 years.

In 30 minutes I can help you understand Medicare, compare plans, and get enrolled. It’s completely free to you, we are paid a commission by the insurance companies.  The best part is that it does not affect your premium or benefits in any way to use our services.

My clients love that I’m local and so knowledgable about Medicare. Schedule your consultation with me today!

Your information is always confidential.