Medicare beneficiaries or people who will be soon eligible for Medicare will be delighted to know that Medicare covers several medical and preventive care. Though, people are required to pay some out-of-pocket costs like co-insurance, co-pays, and deductibles. All the four parts of Medicare, Part A, Part B, Part C, and Part D have premiums and deductibles, however, most of the people don’t have to pay a Part A premium. All the Medicare beneficiaries need to keep in mind that the Medicare premiums and deductibles amount may change every year. It is a fact that most of the Medicare beneficiaries are concerned about its total costs like premiums, deductibles, and copayments. According to an eHealth study in 2018, around 51% of beneficiaries are worried about their copays and deductibles and around 42% of beneficiaries are concerned about their Medicare premiums.
Medicare Deductibles in 2020
There are different Medicare deductibles in 2020 that may differently be applied upon individuals. Medicare deductible costs in 2019 depended on the type of Medicare coverage the beneficiary had. Most of the beneficiaries are automatically enrolled in Original Medicare, the federal Medicare program upon becoming eligible and some need to sign up. Beneficiaries who need to sign up may delay Part B enrollment if they are covered under an employer or union based health plan. Since beneficiaries have to pay a Part B premium, they delay Part B enrollment until they are covered under an employer-based health plan. Since beneficiaries have to pay a premium for Part B so they choose to delay this coverage until their other coverage ends.
Beneficiaries may have to pay Medicare deductibles under the following conditions:
- If they receive Original Medicare benefits through a Medicare Advantage plan.
- If they are enrolled in Original Medicare but also have a Medicare Prescription Drug Plan.
Medicare Part A and Part B Deductibles in the Year 2020
Medicare beneficiaries typically pay a $1408 as a Part A deductible in 2020 before Medicare pays any amount for a hospital or skilled nursing facility stay. It is not an annual deductible rather it is “per benefit period”. A benefit period begins on the day on which the beneficiary is admitted as an inpatient in a hospital or nursing facility and this period ends when the beneficiary does not receive any inpatient hospital care or skilled care for 60 days in a row. If the beneficiary is later admitted to the hospital in the same year then a new benefit period starts and the beneficiary will require to pay another $1408 as a Part A deductible. After meeting the deductible amount for the benefit period, the beneficiary also pays coinsurance under Medicare Part A for covered services while they are in the hospital.
Medicare Part B Deductible
The Medicare Part B deductible in 2020 is $198 and after the beneficiaries have paid their deductible amount they generally pay 20% of the Medicare-approved for most of the covered medical services, outpatient care, and durable medical equipment.
Medicare Advantage or Part C Deductible in 2020
Beneficiaries enrolled in a Medicare Advantage plan have to pay if any deductible amount and other cost-share amounts that are set by the plan. Some of the Medicare Advantage plans come with deductibles as low as $0.
Medicare Part D Deductible in 2020
Beneficiaries enrolled in a stand-alone Medicare Part D plan have to pay a deductible set by the plan. Some of the Part D plans may not have a deductible. However, in 2020 no Medicare Prescription Drug Plan can have a deductible higher than $435.
Medicare Part A and Part B Premiums in 2020
Medicare premiums mainly depend upon the types of Medicare coverage the beneficiary has.
- Part A Hospital Insurance Premium – If Medicare beneficiaries or their spouse have paid Medicare taxes while working for at least 10 years then they generally have premium-free Medicare Part A. Beneficiaries who haven’t worked while paying taxes and don’t qualify for premium-free Part A, then their monthly premium in 2020 will be:
- Beneficiaries who have worked 30-39 quarters and have paid taxes then their monthly premium will be $252.
- Beneficiaries who have worked fewer than 30 quarters need to pay a monthly premium of $458.
Medicare Part B (Medical Insurance) Premium in 2020
Medicare beneficiaries are required to pay a Part B premium and the standard premium for Part B coverage in 2020 is $144.60 per month. However, beneficiaries of income above a certain amount paid a higher premium in 2019. Medicare Part B beneficiaries have to pay an annual deductible of $198 in 2020, which is an increase of $13 from the annual deductible of $185 in 2019. There is an increase in both the premiums and deductibles of Part B mainly due to rising spending on physician-administered drugs.
Medicare Advantage Premium in 2020
Medicare Advantage plans set their own premiums and the amount may vary from one plan to another. Some of the Medicare Advantage plans may have monthly premiums as low as $0. However, beneficiaries need to continue paying their Medicare Part B premium while having a Medicare Advantage plan and they also need to pay their Medicare Advantage premium if any.
Medicare Part D Premium in 2020
Beneficiaries having a stand-alone Medicare Part D prescription drug plans need to pay a monthly premium that is set by the plan. Therefore, the monthly premium for Part D varies among plans.