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There are plenty of big changes in 2020 when it comes to Medicare. These changes impact all current and future beneficiaries. Changes range from coverage, plan options, and so much more. In this context, you’ll learn which plans are going away, cost changes, and how we can help you. Keep reading to review these changes!
What are the Medicare Changes for 2020?
Part A increases include premium raises for those that aren’t eligible for premium-free Part A. In 2020, Part A costs up to $458 a month instead of the previous year being $437 monthly. Those that meet some of the work credits will pay $252 instead of last year’s $240 monthly premium. The Part A deductible increased from $1,364 to $1,408 in 2020.
Part B premiums went from $135.50 last year to $144.60 in 2020. Further, the deductible went up from $185 to $198 in 2020.
In 2020, there are no more first-dollar plans available to those Medicare-eligible after 2020. First-dollar coverage plans are Medicare Supplement plans that cover all deductibles, coinsurances, and copayments.
The three Medicare Supplement Plans considered first-dollar coverage plans are:
The Medicare Access and CHIP Reauthorization Act of 2015 eliminates all Medigap Plans that cover the Part B deductible.
The reason for the change is due to some members of Congress believing Medicare beneficiaries are over-using healthcare services.
With no out of pocket costs, playing it safe was priceless.
By making everyone meet the Part B deductible, legislators hope to prevent recipients from going to the doctor for every minor ailment.
Critics argue that the deductible may keep people from getting the care they need. When people don’t see a doctor, they can end up with serious conditions down the road.
Another important fact, MACRA is making both Plan G and Plan D Guaranteed Issue plans for “newly-eligible” beneficiaries not able to sign up for Plan C or Plan F.
Remember, if you’re eligible before 2020, you’re still eligible for a Guarantee issue with Plan C and Plan F.
Even though Plan F High Deductible is not a first-dollar coverage plan, it’s being discontinued since it’s a plan that falls under Plan F.
The good news is, there’s a new high-deductible plan coming in 2020, High Deductible Plan G. In 2020, any beneficiary can sign up for High-Deductible Plan G.
Medicare can cost each person a different amount. For example, Part A will cost more for someone that never paid into Medicare than it will for someone that did pay into Medicare.
Also, if you’re a high-income earner, you could pay more for Part B. Also, Part D costs could be higher for those with a larger income. Or, if you’re a low-income earner, you may qualify for Extra-Help paying your premiums.
While Medicare isn’t mandatory, if you don’t enroll when eligible, you could end up paying late fees. Thus, increasing the cost of your Medicare.
What are the Medicare Premiums for 2020
What is the 2020 Medicare Deductible
The Part B deductible in 2020 is $198. Also, the Part A deductible is $1,408 in 2020.
Due to the Bipartisan Budget Act, Medicare Advantage plans will be undergoing a few changes. Starting in 2020, Medicare Advantage plans will begin offering supplemental home health benefits.
Further, 2021 Medicare Advantage plans are supposedly going to cover End-Stage Renal Disease patients. Right now, End-Stage Renal Disease is the only condition that prevents people from enrolling in Part C.
Also, in 2020, Medicare Advantage enrollment periods will include the Open Enrollment Period that was once the dis-enrollment period.
In autumn Medicare will announce Part A, B, and C costs for 2021. Now, Part D costs will be increasing in 2021.
The standard deductible will increase from $435 to $445. Then, the Initial Coverage limit will increase from $4,020 to $4,130.
The Out of Pocket Threshold will go up from $6,350 to $6,550. During the Catastrophic coverage phase, generics will go from $3.60 in 2020 to $3.70 in 2020. And, Brand name medications will increase from $8.95 to $9.20.
No matter which prescriptions you take, you need to check the Part D formulary each year before you enroll or continue coverage. And, expect Medicare premiums to increase each year as Medicare spending also increases.
Client Questions Regarding Medicare Increases
How to Compare Medicare Rates for 2020
At MedicareFAQ, our mission is to help you find the best Medicare coverage at the best price. We strive to keep our clients informed on any changes regarding their Medicare benefits.
Let us research the top insurance companies in your area to find you the best rates on Medicare Supplement policies. Whether you’re inquiring for yourself or a loved one, our services are 100% free. Give us a call or fill out our rate comparison form to get started.