As with all types of health insurance, Medicare costs change at least a little every year. Most years, the changes are fairly minor. This post details all of your Medicare costs in 2020, including Parts A, B, and D.
Medicare Part A Costs in 2020
Commonly known as hospital insurance, Medicare Part A covers inpatient care received in a hospital or skilled nursing facility.
Most beneficiaries qualify for premium-free Part A because either they or their spouse paid Medicare taxes the required 40 quarters (10 years). However, if you do not have the required 40 quarters, the Part A monthly premium in 2020 is:
- $252 per month if you paid Medicare taxes for 30 to 39 quarters
- $458 per month for anything less than 30 quarters
In addition to monthly premiums, Medicare Part A’s out-of-pocket costs include deductibles and co-insurance. You may also have a late penalty if you do not qualify for premium-free Part A AND waited at least 12 months to enroll after becoming eligible. The late penalty is 10 percent of your monthly premium for twice the number of years you failed to enroll.
2020 Costs for Hospital Stays
The Medicare Part A deductible in 2020 is $1,408. Unlike Parts B and D, this deductible is not annual. Instead, it is charged each “benefit period.”
Co-insurance costs for each benefit period include:
- $0 for days 1 through 60
- $352 per day for days 61 through 90
- $704 per day for days 91 and on, until you use all 60 of your lifetime reserve days
A benefit period begins the day you are admitted as an inpatient. It ends once you’ve gone 60 consecutive days without receiving inpatient care.
2020 Costs for Skilled Nursing Facility Stays
Medicare covers 100 percent of the costs for the first 20 days you receive care in a skilled nursing facility, per benefit period. For days 21 through 100, you pay $176 per day for co-insurance. You are responsible for 100 percent of costs after day 100.
Medicare Part B Costs in 2020
Commonly referred to as medical insurance, Medicare Part B covers outpatient care, assuming the provider accepts Medicare and the service is covered.
Your Medicare Part B costs include a monthly premium (payable even if you enroll in a Medicare Advantage plan), as well as co-insurance and an annual deductible.
In 2020, the Part B deductible is $198. Once you meet your deductible, Medicare begins paying its share of the cost for covered services. Your share of costs is known as co-insurance. It typically equals 20 percent of the Medicare-approved amount.
The standard Part B premium in 2020 is $144.60. However, this varies depending on your income. The following table describes what you’ll pay in 2020 based on the income you reported for 2018.
Medicare Part B Premium Surcharge
|2018 Income Filing as Individual||2018 Income Filing Jointly||2018 Income Married Filing Separate||Medicare Part B Premium|
|Up to $87,000||Up to $174,000||Up to $87,000||$144.60|
|$87,000 to $109,000||$174,000 to $218,000||Not Applicable||$202.40|
|$109,000 to $136,000||$218,000 to $272,000||Not Applicable||$289.20|
|$136,000 to $163,000||$272,000 to $326,000||Not Applicable||$376.20|
|$163,000 to $500,000||$326,000 to $750,000||$87,000 to $413,000||$462.70|
|$500,000 and up||$750,000 and up||$413,000 and up||$491.60|
The average premium amount is $130 for beneficiaries who receive Social Security benefits.
If you didn’t sign up for Medicare Part B when you became eligible, you may also owe a late penalty. The amount is 10 percent of your monthly premium for every full year you delayed enrollment. Unlike Part A, you pay this penalty for the entire time you have Medicare.
Medicare Part D Costs in 2020
Your out-of-pocket costs for your Medicare prescription drug plan (Part D) vary according to the plan and provider you choose. However, you may also owe a premium surcharge based on your income in 2018.
Medicare Part D Premium Surcharge
|2018 Income Filing as Individual||2018 Income Filing Jointly||2018 Income Married Filing Separate||Medicare Part D Premium|
|Up to $87,000||Up to $174,000||Up to $87,000||Your Plan's Premium|
|$87,000 to $109,000||$174,000 to $218,000||Not Applicable||Your Plan's Premium + $12.20|
|$109,000 to $136,000||$218,000 to $272,000||Not Applicable||Your Plan's Premium + $31.50|
|$136,000 to $163,000||$272,000 to $326,000||Not Applicable||Your Plan's Premium + $50.70|
|$163,000 to $500,000||$326,000 to $750,000||$87,000 to $413,000||Your Plan's Premium + $70.00|
|$500,000 and up||$750,000 and up||$413,000 and up||Your Plan's Premium + $76.40|
If you’ve gone more than 63 days without prescription drug coverage, you may also owe a late penalty for Part D. The calculation looks like this:
You owe this penalty for the entire time you have Medicare Part D.
Medicare Advantage Costs in 2020
Like Part D, your Medicare Advantage plan costs vary according to the provider and plan you choose. To learn more about the plan options and costs in your area, call us toll-free at 855-350-8101 to talk to one of our licensed agents. We’ll explain your options, answer any questions you have, and help you find the right plan for your unique needs. The best part? It won’t cost you a penny.