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