An increase in premiums and deductibles, an all-improved Plan Finder tool, end of the Part D donut hole — these are some of the changes that can be expected with Medicare and Medicare Advantage (MA) plans in 2020.
Medicare Part A
Part A, which covers hospitalization costs, will see an increase in premium based on their work history.
- For those with 30-40 quarters of work history, the monthly premium will be $252 in 2020 (up $12 from 2019); for those with less than 30 quarters of work history, the monthly premium will be $458 in 2020 (up $21 from 2019).
- Part A inpatient hospital deductible will increase to $1,408 in 2020.
- Medicare patients who need beyond 60 days of inpatient coverage will pay a coinsurance of $352/day in 2020 as coinsurance, till the 90th day.
- The first 20 days of a skilled nursing facility are paid by the deductible. From days 21 through 100, the patient will owe $176/day in coinsurance in 2020.
You can read more about what these insurance terms mean here: https://patientsrising.org/health-insurance-terms/.
Medicare Part B
- The monthly premium for Medicare Part B will be $144.60 in 2020.
- The Part B deductible will be $198 in 2020.
- Rising spend on physician-administered drugs is mainly responsible for the increase in the 2020 premiums and deductible.
Medigap Plans C and F
These plans will not be available for newly eligible Medicare enrollees in 2020. Those who are already eligible before 2020 can continue to enroll in them or apply at a later time. Part B deductibles are covered under Medigap Plans C and F, but other Medigap enrollees have to pay their Part B premiums out-of-pocket.
Medicare Advantage
- The 2020 MA premiums will average $23/month.
- For plans that have an integrated Part D prescription coverage, the monthly premium will be $36 in 2020.
Part D Donut Hole
- The maximum allowable deductible in 2020 for standard Part D plans is $435.
- The out-of-pocket threshold increased to $6,350 in 2020.
- Enrollees in standard Part D plans will pay 25% of their brand name or generic cost after having met their deductible, till they reach the catastrophic threshold.
RESOURCES
Medicare Parts A and B information: https://www.cms.gov/newsroom/fact-sheets/2020-medicare-parts-b-premiums-and-deductibles
MA plan information:
- Specific coverage services: https://www.medicare.gov/what-medicare-covers/what-medicare-health-plans-cover/medicare-advantage-plans-cover-all-medicare-services
- Cost of services: https://www.medicare.gov/your-medicare-costs/costs-for-medicare-advantage-plans
- Prescription drug coverage (Part D): https://edit.medicare.gov/drug-coverage-part-d/how-to-get-prescription-drug-coverage
