Facing a complex Medicare system with costs that change each year can feel overwhelming. Understanding these changes and knowing what to expect can help you prepare for changes in 2020.
Here are some simple explanations of what to expect for Medicare costs in 2020, as well as a few ways you can get help paying for your care.
The Centers for Medicare & Medicaid Services (CMS) attributed much of the increased costs for Medicare Part B to the rising cost of prescription drugs and the increase in physicians prescribing these drugs. However, for the increased cost in Medicare parts A and B overall, there is no single cause. Medicare is a part of the Social Security Administration, and it’s adjusted yearly along with other elements of Social Security.
Although Medicare parts A and B have increased in 2020, it’s worth noting that most people with Medicare don’t pay a premium for their Medicare Part A. They’ve worked enough quarters prior to retirement that those costs are covered.
In addition to adjusting the cost of Medicare premiums and deductibles, the Social Security Administration also adjusts benefits for the cost of living. This means that for 2020, many people with Social Security and Medicare may be able to cover the Medicare cost increase with their Social Security benefit increase.
Use this simple Medicare tool to compare 2020 Medicare plans in your area.
Medicare Part A covers healthcare costs like inpatient hospital visits, skilled nursing facilities, and home healthcare, among other needs. The following premiums and deductibles will apply in 2020 for Medicare Part A:
Medicare Part A costs in 2020
| Part A fees | Cost in 2020 | Increase of: |
| Inpatient hospital deductible: | $1,408 | $44 |
| Daily coinsurance for 61st to 90th day: | $352 | $11 |
| Lifetime reserve days: | $704 | $22 |
| Coinsurance for skilled nursing facility: | $176 | $5.50 |
Medicare Part B works in tandem with Part A to ensure your healthcare is covered when it comes to durable medical equipment or outpatient care. The following premiums and deductibles will apply to Medicare Part B in 2020:
Medicare Part B costs in 2020
| Part B fees | Cost in 2020 | Increase of: |
| Standard monthly premium: | $144.60 | $9.10 |
| Annual deductible: | $198 | $13 |
Medicare Advantage plans are purchased through private health insurance providers, and so the adjustment to rates for 2020 will vary. Check with your Part C provider for updated 2020 premium rates. They’re generally available by January 1 of the new year, so for 2020, they should already be live. Kaiser Family Foundation (KFF) reports the following average costs for Part C in 2020:
Medicare Part C costs in 2020
| Part C premiums | Average monthly cost in 2020 | Decrease of: |
| Average premium: | $36 | $4 |
Medigap plans (Medicare supplement) are a set of plans purchased through private providers that essentially cover costs not otherwise included in your other Medicare coverage. This means that the cost of Medigap plans will vary according to provider and state. (Note: In 2020, Medigap plans C and F will no longer be available for purchase by people new to Medicare. )
Since the coverage is specific to your age, needs, location, and insurance provider, the price of a Medigap plan in 2020 will vary greatly. Each company determines individual premiums based on these factors. This is why it’s so important to compare plans and prices when choosing your Medigap provider.
Get help for your Medicare Costs
- Manage your prescription drug costs by switching to a generic drug when possible.
- Apply for Extra Help, an assistance program for prescription drug coverage.
- Apply for co-pay relief or financial aid help from the Patient Advocate Foundation.
- Find out if you qualify for Medicaid, a joint federal and state program that helps pay for medical costs.
- Apply for Medicare Savings Programs like the Qualified Medicare Beneficiary (QMB) Program or the Specified Low-Income Medicare Beneficiary (SLMB) Program. These are state-level discount programs for people with Medicare that meet a certain income limit.
Medicare costs are changing in 2020. What you pay will depend on which Medicare plans you choose.
Medicare has several discount and assistance programs available to help reduce Medicare costs. Qualifying for these programs is based on several factors including where you live, your income, if you have a disability, and the insurance provider you choose.
