Enrollees should brace for a 6.7% increase in the Medicare Part B standard monthly premium for 2020, the Centers for Medicare & Medicaid Services (CMS) has announced.
XMedicare Part B Premium And Deductible Increases In 2020
The standard monthly Medicare Part B premium will rise to $144.60 for 2020. That will be a $9.10 a month increase from $135.50 in 2019.
The wealthiest seniors will get slapped with a total monthly Medicare Part B premium per person of $491.60. That will be the 2020 levy for married joint filers whose joint income is $750,000 or higher. That works out to $5,899.20 a year, or $11,798.40 per couple.
That will mark a 6.8% hike from $460.50 per month per person, or $11,052 annually for a married joint filing couple.
The annual deductible for all Medicare Part B enrollees will be $198 in 2020. That will be an increase of $13 from 2019's annual deductible of $185.
A Challenge For Many Seniors
The 2020 Medicare Part B premium and deductible hikes will be a challenge for many seniors. Premiums are typically assessed by subtracting them from beneficiaries' Social Security benefits.
And those benefits, which were announced about one month before the Medicare figures, will be boosted in 2020 at a rate much smaller than the health insurance cost increases.
The Social Security cost-of-living-adjustment (COLA) for 2020 will be a modest 1.6%.
Meanwhile, the maximum amount of earnings subject to Social Security tax will rise to $137,700. That's up from 2019's $132,900.
The estimated average monthly Social Security benefit payable in January 2020 for a retired couple will be $2,531. That's up from $2,491 before the 2020 1.6% COLA.
What Medicare Part B Covers
What is Medicare Part B? Medicare Part B is medical insurance that generally covers doctor office visits and preventive services including certain tests and screenings. It covers preventive care such as flu shots, pneumococcal shots and chemotherapy. It also covers outpatient hospital services, certain home health services, durable medical equipment like wheelchairs and certain other health care services that are not covered by Medicare Part A.
Part A is, basically, hospital insurance.
If your income is higher than a certain amount, you might have to pay a higher Medicare Part B premium.
Eligibility For Medicare Part B
To be eligible for Medicare Part B, you must be 65 years of age or older and a U.S. citizen or lawful permanent resident for at least five years. Also eligible are younger people receiving Social Security or Railroad Retirement Board disability benefits, or someone younger than 65 who suffers from certain diseases such as end-stage renal disease.
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