ORIGINAL MEDICARE
The standard Part B premium amount for 2020 will increase to $144.60.
If you receive benefits from Social Security, Railroad Retirement Board, or the Office of Personnel Management, then your bill is automatically deducted before benefits are deposited.
When you don’t receive these benefits, you’ll receive a bill for your Part B premium. This bill is called a “Medicare Premium Bill”.
You can also select to have the Part B premium deducted from an annuity.
For those with limited incomes or resources, you could qualify for extra help from your state in paying for Part B and/or Part A.
2020 Part B Premium Increases
Your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount.
The 2020 Part B premium amount is $144.60. However, those with a modified adjusted gross income above a certain amount will pay an Income Related Monthly Adjustment Amount.
Since 2007, Part B premium surcharges for higher-income beneficiaries have impacted individuals with an income of more than $87,000.
For couples with an income above $174,000, you’ll notice a Part B premium surcharge.
Hold Harmless Provision & the Social Security COLA Increase
You’re held harmless and your premium won’t increase to $144.60 if the cost of living amount (COLA) in 2020 isn’t enough to cover the premium increase.
The premium increase instead becomes the same as your Social Security benefits increase.
Hold Harmless won’t apply to you if:
- You’re new to Medicare
- Subjected to the IRMAA
- Enrolled in the Medicare Savings Program (MSP)
- The MSP in 2018 but lost benefits due to income increase
- Or you didn’t re-certify
For those subjected to the Part B late enrollment penalty, your penalty won’t be waived and it can increase. This penalty is calculated based on the current premium.
Even if you don’t pay the higher amount, you’ll still be responsible for the penalty.
What Does Part B Cover
Part B will cover you when you need outpatient services. So, a specialist, doctor, or other outpatient facilities will fall under the scope of Part B.
Although, Part B does cover many common things.
- Lab Tests
- X-rays, MRIs, EKGs, and CT Scans
- Ambulance services
- Diagnostic tests
- Durable medical equipment
- as well as flu shots
Part B is needed to enroll in additional coverage. By having Part B you’ll protect yourself from the high costs of medical attention.
If you need guidance, one of our licensed insurance agents can point you in the right direction.
How Do I Pay My Medicare Part B Premium Bill
Paying the Part B Premium bill in 2020 is simple. You can pay directly from a bank account by utilizing your online bill payment service.
If you aren’t comfortable with that you can pay by check, money order, credit as well as a debit card.
You can do this by simply sending the payment and payment coupon to:
Medicare Premium Collection Center
PO Box 790355
St.Louis, MO 63179-0355
If the credit or debit card you use only has month and year, leave the day field blank on the payment coupon.
You must submit payments with the coupon filled out on the bottom. When the bottom portion is incomplete, payment may not be processed.
Be sure to sign the payment coupon before submitting it to the address above.
What If Your Medicare Premium is Late
Medicare will send you a second bill to remind you to pay the premium. Although, if you avoid paying the premium by the due date of the second bill, a delinquent bill will be sent out.
However, if you avoid paying the delinquent bill, you’ll lose Medicare coverage.
Paying your Medicare premiums should be highly important to you, this is your healthcare coverage.
Get Help with Part B Out of Pocket Costs
There are many out of pocket costs left up to the beneficiary to pay when it comes to Part A & Part B. Although, supplement insurance compliments your Original Medicare.
It helps pay for out of pocket costs such as coinsurance, copayments, deductibles as well as excess charges. There are many plans to choose from. Click or call to get a quote today!
Get peace of mind with a Medicare Supplement policy today. You can get an online price quote by clicking here.
About The Author
I am 64 and will turn 65 on March 4th of this year.Retired.I initially turned down Part B on Social Security offering because of the extra expense and the fact that I still carry my FEP Anthem Blue /Cross insurance. My wife does not turn 65 until March 17, 2019 so she is not eligible for B.
If I change my mind on electing B coverage,can I still do that and begin having it deducted from my Social Security check?
Yes, you would need to contact the Social Security Administration or your local Medicare/Social Security Office. They can only deduct from your Social Security if you are drawing Social Security. If you are just taking Medicare and not drawing Social Security, you will generally get a quarterly bill to pay the Part B Premium. Once you enroll in Medicare Part B, give us a call so we can get you enrolled in a Medigap plan to cover the out of pocket expenses Part A and Part B doesn’t cover!
If I get reimbursed for medicare part b premiums through a company sponsored hra, can I still deduct them on my tax return?
Hi Bonny! This is a great question. Unfortunately, you can only deduct medical expenses that you paid with your own out of pocket funds that were not reimbursed.
I received notice of increased Medicare Part B & D premiums due to income. I have VA drug coverage, am I able to opt out of Medicare Part D drug coverage?
Hi Ralph! This is a great question. So yes, you’ll be able to opt-out of Part D without being penalized since Veteran benefits are considered creditable coverage under Part D. However, it is NOT considered creditable coverage under Part B. If you were to drop your Part B, you will incur a penalty for each year you went without coverage that will be applied to your premium if you ever decided to enroll back into Part B again. I would highly recommend you do not drop your Part B, but your Part D is fine to drop.
OK, You identify the 2020 Part B premiums. How do I know what my 2020 Medigap policy premium will be?
Hi Doree! Your Medigap carrier will send you a letter during your renewal time that will inform you of any premium increases.
I retired on April 2019, and I would like to know if my premium will be increase for 2020
Hi Maria! Are you referring to the Part B premium? Assuming you enrolled in Part B already, your premium is currently $135.50. Yes, your Part B premium will increase to $144.60 starting in 2020. If you delayed enrollment without creditable coverage, you could have a late enrollment penalty added on to your monthly premium. However, since you retired less than 12 months ago, you should not have any late penalty at this point. If you wait to enroll in Part B until April 2020 or after, you’ll start incurring that penalty.