Medicare Costs at a Glance 2020
2020 Medicare Costs
Listed below are the basic Medicare costs for 2020. If you want more information and/or want to compare costs for specific health care plans, give us a call and speak to a Licensed Agent free of charge 888-354-3129 ext.3.
Specific Medicare Part A Costs for 2020
Medicare Part A Premiums
Most people don’t pay a monthly premium for Medicare Part A (sometimes called “premium-free Part A”). This is because there is no Part A premium if you or your spouse has paid Medicare taxes for 40 quarters (10 years).
If you or your spouse have paid Medicare taxes for less than 30 quarters, the standard Part A premium is $437 (this is same price if you buy it as well). If you or your spouse have paid Medicare taxes for 30-39 quarters, the standard Part A premium is $240.
Medicare Part A Hospital Inpatient Deductible & Coinsurance
If you have to stay in the hospital, you will pay:
- $1,408 deductible for each benefit period
- Days 1-60: $0 coinsurance
- Days 61-90: $352 coinsurance per day
- Days 91 and beyond: $704 coinsurance per each ”lifetime reserve day” after day 90 for each benefit period (up to 60 days over your lifetime)
- Beyond lifetime reserve days: all costs
Specific Medicare Part B Costs for 2020 (Avoid the Penalty)
Medicare Part B Premiums
Medicare Part B costs will depend on your income. The standard Medicare Part B premium amount is $144.60. It can be either higher or lower depending on your income (for example, some people who get Social Security benefits will pay $130 on average).
Medicare Part B Deductible & Coinsurance
- The standard deductible is $198 per year.
- Once your deductible is met, you will typically pay 20% of the Medicare-approved amount for most doctor services (including hospital inpatient doctor services), outpatient therapy, and durable medical equipment.
Medicare Part B Late enrollment penalty:
You will want to sign up for Part B when you are first eligible. This is because if you sign up afterwards, you’ll have to pay a late enrollment penalty, which you’ll pay as long as you have Part B. This also builds up – your monthly premium for Part B can increase 10% for each full 12-month period you were eligible for Part B but didn’t enroll. In addition, you may have to wait until the General Enrollment Period (which is January 1 to March 31) to sign up for Part B (and then your coverage will begin on July 1 of that year.)
Specific Medicare Part C Costs for 2020
Medicare Part C Premiums
Medicare Part C is also known as Medicare Advantage Plan, and is an optional plan similar to an HMO. Thus, your Medicare Part C monthly premium varies by plan. Some Medicare Advantage plans offer a $0 dollar monthly premium and other plans may have a small monthly premium.
Specific Medicare Part D Costs for 2020
Medicare Part D Prescription Drug Plan Premiums
Medicare Part D is the prescription drug component of Medicare. Your Medicare Part D prescription drug plan monthly premiums will vary by your plan and income (in other words, higher incomes might pay higher premiums).
Medicare Part D Prescription Drug Plan Late Enrollment (Avoid the Penalty)
Similar to Part B, there is a penalty for late enrollment (so enroll as soon as you are eligible).
The enrollment penalty is enacted if you go without one of the following for any continuous period of 63+ days after your eligibility period. If you delay, and enroll past your legibility period, you will be penalized 1% for each month you delayed. This is not a onetime penalty but forever.
- The Medicare Part D prescription drug Plan
- A Medicare Advantage Plan Part C Plan
- An authorized Medicare health plan that offers Medicare Part D prescription drug
- A creditable prescription drug plan
It is important that you sign up when you are eligible (similar to Part B, the penalty will be enforced as long as you have Part D). The amount of the penalty will depend on how long you went without at least one of the previous four items above.
Medicare Part D Prescription Drug Plan Deductibles, copayments, & coinsurance
Like Part C, your Medicare Part D deductibles and co-pays will vary by plan.