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:
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:
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).
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:
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Monday, November 11, 2019
2020 Medicare Parts A & B Premiums and Deductibles
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