Just like a puzzle with pieces missing, Medicare does not pay all of your medical expenses.
Every year on January 1st, Medicare’s premiums, deductibles, copayments, and coinsurance costs are adjusted. Here are the amounts for 2020.
— 2020 Medicare Deductibles / Co-Pays —
| Part A: Hospital Deductible (per Benefit Period*) | $1,408 |
| Part A: Hospital Coinsurance, per day (days 61-90) | $352 |
| Part A: Hospital Coinsurance, per lifetime reserve day after day 90 of each benefit period (maximum of 60 lifetime reserve days for ALL benefit periods combined during your lifetime) | $704 |
| Part A: Skilled Nursing Facility Coinsurance, per day (days 21-100) | $176 |
| Part B: Monthly Premium (**See Notes below) | $144.60** |
| Part B: Annual Deductible | $198 |
*Benefit Period. The way Original Medicare measures your use of hospital and skilled nursing facility (SNF) services. A benefit period begins the day you’re admitted as an inpatient in a hospital or SNF. The benefit period ends when you haven’t received any inpatient hospital care (or skilled care in a SNF) for 60 days in a row. If you go into a hospital or a SNF after one benefit period has ended, a new benefit period begins. You must pay the inpatient hospital deductible for each benefit period. There’s no limit to the number of benefit periods each year.
Note #1: Your Part B premium will be based on your modified adjusted gross income. Most people will pay the amount shown in the chart above. But, if you filed an individual tax return for 2018 and your modified adjusted gross income was more than $87,000, your Part B premium for 2020 is shown in the table below. If you filed a joint tax return for 2018 and your modified adjusted gross income was more than $174,000, your Part B premium for 2020 is also shown in the table below. The Social Security Administration will compute your premium for you. However, we suggest that you double-check their computation against your 2018 tax return.
Note #2: “Why does Social Security use my modified adjusted gross income from 2018 to determine my Part B premium for 2020?” Part B premiums for 2020 were announced in mid-November 2019. Instead of guessing what your earnings would be for the full year in 2019, Social Security used the adjusted gross income from your 2018 tax return.
— 2020 Part B Monthly Premium —
| If your 2018 income was … | |||
|---|---|---|---|
| File Individual Tax Return | File Joint Tax Return | File Married & Separate Return | You Pay in 2020 |
| $87,000 or less | $174,000 or less | $87,000 or less | $144.60* |
| $87,001 to $109,000 | $174,001 to $218,000 | Not applicable | $202.40* |
| $109,001 to $136,000 | $218,001 to $272,000 | Not applicable | $289.20* |
| $136,001 to $163,000 | $272,001 to $326,000 | Not applicable | $376.00* |
| $163,001 to $499,999 | $326,001 to $749,999 | $87,001 to $412,999 | $462.70* |
| $500,000 and above | $750,000 and above | $413,000 and above | $491.60* |
*If you don’t have to pay a late-enrollment penalty.
— 2020 Part D Monthly Premium Surcharge —
Note: Just like your Part B premium, your Part D premium surcharge will be based on your modified adjusted gross income. Most people will pay the amount billed by their insurance company. But, if you filed an individual tax return for 2018 and your modified adjusted gross income was more than $87,000, your Part D premium surcharge for 2020 is shown in the table below. If you filed a joint tax return for 2018 and your modified adjusted gross income was more than $174,000, your Part D premium surcharge for 2020 is also shown in the table below. The Social Security Administration will compute your premium for you. However, we recommend that you double-check their computation against your 2018 tax return.
| If your 2018 income was … | |||
|---|---|---|---|
| File Individual Tax Return | File Joint Tax Return | File Married & Separate Return | Your 2020 Monthly Surcharge |
| $87,000 or less | $174,000 or less | $87,000 or less | $0* |
| $87,001 to $109,000 | $174,001 to $218,000 | Not applicable | $12.20* |
| $109,001 to $136,000 | $218,001 to $272,000 | Not applicable | $31.50* |
| $136,001 to $163,000 | $272,001 to $326,000 | Not applicable | $50.70* |
| $163,001 to $499,999 | $326,001 to $749,999 | $87,001 to $412,999 | $70.00* |
| $500,000 and above | $750,000 and above | $413,000 and above | $76.40* |
*If you don’t have to pay a late-enrollment penalty.
Source:
Medicare Costs at a Glance [medicare.gov]
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