FACT SHEET
November
8, 2019
Contact:
CMS Media Relations
(202) 690-6145 | CMS Media Inquiries
2020 Medicare Parts A & B Premiums
and Deductibles
On
November 8, 2019, the Centers for Medicare & Medicaid Services (CMS)
released the 2020 premiums, deductibles, and coinsurance amounts for the
Medicare Part A and Part B programs.
Medicare
Part B Premiums/Deductibles
Medicare
Part B covers physician services, outpatient hospital services, certain
home health services, durable medical equipment, and certain other
medical and health services not covered by Medicare Part A.
Each
year the Medicare premiums, deductibles, and copayment rates are adjusted
according to the Social Security Act. For 2020, the Medicare Part B
monthly premiums and the annual deductible are higher than the 2019
amounts. The standard monthly premium for Medicare Part B enrollees will
be $144.60 for 2020, an increase of $9.10 from $135.50 in 2019. The
annual deductible for all Medicare Part B beneficiaries is $198 in 2020,
an increase of $13 from the annual deductible of $185 in 2019.
The
increase in the Part B premiums and deductible is largely due to rising
spending on physician-administered drugs. These higher costs have a
ripple effect and result in higher Part B premiums and deductible.
From
day one, President Trump has made it a top priority to lower drug prices.
Currently, for Part B, the law requires CMS to pay the average sales price
for a drug and also pays physicians a percentage of a drug's sale price.
This incentivizes drug companies to set prices higher and for physicians
to prescribe more expensive drugs – because that leads to a higher
Medicare payment. Through the President’s drug pricing blueprint, the
Trump Administration is working to lower drug prices in Medicare Part B
drugs.
CMS
is committed to empowering beneficiaries with the information they need
to make informed decisions about their Medicare coverage options, including
providing new tools to help them make those decisions through the
eMedicare initiative. In addition to the recently released premiums and
cost sharing information for 2020 Medicare Advantage and Part D plans, we
are releasing the premiums and cost sharing information for
Fee-for-Service Medicare, so beneficiaries understand their options for
receiving Medicare benefits. As previously announced, as a result of CMS actions to
drive competition, on average for 2020, Medicare Advantage premiums are
expected to decline by 23 percent from 2018, and will be the lowest in
the last thirteen years while plan choices, benefits and enrollment
continue to increase. Premiums and deductibles for Medicare Advantage and
Medicare Part D Prescription Drug plans are already finalized and are
unaffected by this announcement.
Medicare
Part B Income-Related Monthly Adjustment Amounts
Since
2007, a beneficiary’s Part B monthly premium is based on his or her
income. These income-related monthly adjustment amounts (IRMAA) affect
roughly 7 percent of people with Medicare Part B. The 2020 Part B total
premiums for high income beneficiaries are shown in the following table:
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
|
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, are as
follows:
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
|
Medicare
Part A Premiums/Deductibles
Medicare
Part A covers inpatient hospital, skilled nursing facility, and some home
health care services. About 99 percent of Medicare beneficiaries do not
have a Part A premium since they have at least 40 quarters of
Medicare-covered employment.
The
Medicare Part A inpatient hospital deductible that beneficiaries will pay
when admitted to the hospital will be $1,408 in 2020, an increase of $44
from $1,364 in 2019. The Part A inpatient hospital deductible covers
beneficiaries’ share of costs for the first 60 days of Medicare-covered
inpatient hospital care in a benefit period. In 2020, beneficiaries must
pay a coinsurance amount of $352 per day for the 61st through
90th day of a hospitalization ($341 in 2019) in a benefit
period and $704 per day for lifetime reserve days ($682 in 2019). For
beneficiaries in skilled nursing facilities, the daily coinsurance for
days 21 through 100 of extended care services in a benefit period will be
$176.00 in 2020 ($170.50 in 2019).
Part A
Deductible and Coinsurance Amounts for Calendar Years 2019 and 2020 by
Type of Cost Sharing
|
|
2019
|
2020
|
Inpatient
hospital deductible
|
$1,364
|
$1,408
|
Daily
coinsurance for 61st-90th Day
|
$341
|
$352
|
Daily
coinsurance for lifetime reserve days
|
$682
|
$704
|
Skilled
Nursing Facility coinsurance
|
$170.50
|
$176
|
Enrollees
age 65 and over who have fewer than 40 quarters of coverage and certain
persons with disabilities pay a monthly premium in order to voluntarily
enroll in Medicare Part A. Individuals who had at least 30 quarters of
coverage or were married to someone with at least 30 quarters of coverage
may buy into Part A at a reduced monthly premium rate, which will be $252
in 2020, a $12 increase from 2019. Certain uninsured aged individuals who
have less than 30 quarters of coverage and certain individuals with
disabilities who have exhausted other entitlement will pay the full
premium, which will be $458 a month in 2020, a $21 increase from 2019.
For
more information on the 2020 Medicare Parts A and B premiums and
deductibles (CMS-8071-N, CMS-8072-N, CMS-8073-N), please visit:
CMS-8071-N:
https://www.federalregister.gov/documents/2019/11/13/2019-24441/medicare-program-cy-2020-inpatient-hospital-deductible-and-hospital-and-extended-care-services
CMS-8072-N:
https://www.federalregister.gov/documents/2019/11/13/2019-24439/medicare-program-cy-2020-part-a-premiums-for-the-uninsured-aged-and-for-certain-disabled-individuals
CMS-8073-N:
https://www.federalregister.gov/documents/2019/11/13/2019-24440/medicare-program-medicare-part-b-monthly-actuarial-rates-premium-rates-and-annual-deductible
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