person handing over card; medicare costs for 2020

Medicare Costs for 2020: Increases for Part A and Part B Premiums and Deductibles 

On November 8, 2019, the Centers for Medicare and Medicaid Services (CMS) released the new Medicare costs for 2020. Medicare Part B premiums will increase by about 7% for nearly 70% of all beneficiaries. 

Medicare Part B premiums and deductible

The average Part B premium will increase by $9.10 in 2020, and the Part B deductible will increase by $13. 

infographic showing Part B premiums and deductible

Since 2007, Medicare Part B premiums have been tied to annual income. Beneficiaries with higher levels of income (about 7% of all beneficiaries) may see surcharges in their Part B premium, also called income-related monthly adjustment amounts (IRMAA). 

infographic showing Part B premium surcharges

Medicare pointed to the cost of expensive physician-administered drugs (like cancer drugs) to explain the Part B increases for 2020. 

Find Your Perfect Medicare Plan
in Seconds

Find Your Perfect Medicare Plan
in Seconds

There's never been an easy way for Medicare beneficiaries to save on services and products not covered by Medicare alone, until now.

Part A premiums and deductible

Medicare Part A is premium-free for 99 percent of Medicare beneficiaries who have worked for about 10 years and accumulated at least 40 quarters of work credit. However, beneficiaries who do not have 40 or more quarters of work credit will need to pay a premium according to how many credits they or their spouse have. 

infographic showing Part A premiums and deductible

Medicare Advantage and Medicare Part D costs

On the whole, Medicare Advantage premiums have dropped an average 23 percent since 2018 while benefits, plan options, and enrollment have all increased. 

Medicare Advantage and Medicare Part D plans are sold by private insurers, so costs vary by plan. To get costs for your specific plan, contact your insurer directly. 

How does this increase affect Social Security checks?

This announcement of Medicare costs for 2020 comes just a few weeks after the Social Security Administration announced a modest 1.6% cost of living adjustment (COLA) for 2020. This increases the average Social Security check by about $24. 

People who receive benefits from both Social Security and Medicare typically have their Medicare Part B premium deducted from their monthly Social Security check for the sake of efficiency. After deducting the average 2020 Medicare Part B premium ($144.60), that leaves beneficiaries of both programs with a net increase of $14.90. 

The new Medicare Plus Card saves you up to 75% on things not covered by Medicare

Medicare doesn’t cover everything. Luckily, those on Medicare can now start saving on out of pocket expenses like prescription drugs, dental, vision, hearing, and more. Over 1 million people have already received their free Medicare Plus Card.

Sponsored Content