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Medicare Costs at a Glance
Medicare costs change annually. Most of the time you’ll see increases year over year. We’ll go over all cost-sharing including premiums, deductibles, coinsurances, and copayments for all Medicare parts to give you a rough estimate on what you can expect to pay out of pocket in 2020. As this year comes to an end, we’ll make sure to update this page with Medicare costs for 2021 once they’re released by CMS.
Medicare Cost in 2020
Medicare covers 80% of the medicare-approved amount on Part A and Part B services after meeting the deductible; you must pay 20%.
Part A Cost
Part A consists of premium, deductible, coinsurance, and copayment costs.
Part A is usually Premium-Free for those that work and pay into Medicare a minimum of ten years or forty quarters; or, if a spouse qualifies. Most beneficiaries are eligible for free Part A.
Those that don’t qualify could pay up to $458 a month. Some people may be close to qualifying; for example, if you contribute taxes for 30 quarters, you’re premium would be $252 a month.
The Part A deductible is a beast that many aren’t expecting. Staying in the hospital could cost $1,408 in deductible costs alone.
Unfortunately, this isn’t an annual deductible; instead, it’s a “per benefit” deductible.
Copayments for Part A apply when you stay for more than 60 days in a hospital during a single benefit period or 20 days in a Skilled Nursing Facility.
For example, days 6 through 90 cost $352 per day for each benefit period. Then, days 91 and further cost $702 each day.
In an SNF, days 21 through 100 cost $176 each day for each benefit period. Then, after day 101, you pay ALL the costs.
A Medigap plan could cover the cost of the SNF coinsurance and Hospital costs up to an additional year after Medicare.
Part B Cost
The Part B premium usually comes out of your social security check. The current standard monthly premium for Part B is $144.60.
The Medicare Part B deductible is $198. Those with a low-income may qualify for extra-help, which could assist with the deductibles and coinsurances.
You must meet the deductible before Medicare covers unless the service is preventive. Part B includes all outpatient services.
Medicare Income Limits for 2020
Premiums for Part B are based on your two previous years of income. The standard Part B premium can cost more to those with a higher income.
You can file an IRMAA-appeal if you have a change, such as lower-income from retirement or loss of a spouse.
Medicare Advantage Cost
Many Medicare Advantage plans across the nation have a $0 premium or a low monthly cost in general. While this coverage can seem appealing to many Americans, there are disadvantages to Medicare Advantage plans. Saving on the premium is great until you get sick and need real coverage.
There are Medicare Advantage plans that don’t have a deductible for medical or prescription costs; although, many have a Part D deductible that applies.
If the advantage plan you have requires a medical deductible, only care that’s in-network will apply towards that deductible.
Prescription Drug Plan Costs
Just like Part B, Part D charges high-income earners more for coverage. So, if you’re single making over $87,000 or Married making over $174,000, expect a premium increase.
Also, if you delay Part D, a late enrollment penalty will apply. The Part D penalty is 1% of the national average drug plan premium for every month you go without coverage.
The national base beneficiary premium is $32.74; then, the maximum deductible for any Part D policy is $435. Each plan covers a portion of the cost of your drugs; you’ll pay any applicable copayments or coinsurances.
The tier determines cost, usually higher specialty tier drugs cost the most. During the donut hole, you’ll pay more than usual for your medications; although, not everyone falls into the coverage gap.
We have a great chart that goes over Part D costs year over year.
How to Find Out More About Medicare Costs in 2020
It’s important to stay on top of Medicare costs each year so you can prepare for your healthcare costs. Give us a call to learn more about costs and all your coverage options.
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