2020 Changes to Medicare
The new year is bringing some new changes for Medicare! Last Friday, CMS announced the increased rates for 2020 Medicare Part A and B. The Social Security Act annually adjusts rates for things such as premiums, deductibles and coinsurance. You might be wondering, why do they change the cost for Medicare Part A and B every year? The reason that we see annual changes specifically with Part B premiums and deductibles are because of the increased spending on physician administered drugs.
You will see an increase in the standard monthly premium for Medicare Part B, which is set at $144.60 for the upcoming year, resulting in a $9.10 inflation. The annual deductible from 2019 rose $13, changing to $198.
Medicare Part A increased $44, which will be $1,408 for the coming year. As you may already know, the Part A deductible covers inpatient hospital beneficiaries’ share of cost for the beginning 60 days.
· For the coming year, beneficiaries’ coinsurance will cost $352 per day for the 61st through 90th day of hospitalization ($11 increase) and $704 for lifetime reserve days ($22 increase).
· For those in skilled nursing facilities, the cost for days 21 through 100 in extended care will be $176, a $5.50 surge from last year.
If you know someone that might be impacted by these cost changes, be sure to let them know that MWG Senior Services can be their trusted retirement and Medicare resource. We understand how confusing Medicare can be. We can help them cross everything off their retirement checklist like enrolling in Medicare, Medicare supplement insurance, dental, vision, long-term care, cancer and prescription drug coverage.
If you have questions about navigating the ever-changing Medicare maze or retirement insurance options, we have advisors ready to guide you on the road to retirement! Call us at (877) 759-5760 or email firstname.lastname@example.org.
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Information retrieved from: 2020 Medicare Parts A & B Premiums and Deductibles. (2019, November 9). Retrieved from https://www.cms.gov/newsroom/fact-sheets/2020-medicare-parts-b-premiums-and-deductibles.