Medicare Costs

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2020 Original Medicare Costs at a Glance


Medicare Costs are listed below:

2020 costs at a glance
Part A premium Most people don’t pay a monthly premium for Part A (sometimes called “premium-free Part A”). Although if you buy Part A, you’ll pay up to $458 each month.
Part A hospital inpatient deductible and coinsurance  You pay:

  • $1,408 deductible for each benefit period
  • Days 1-60: $0 coinsurance for each benefit period
  • 61-90: $352 coinsurance per day of each benefit period
  • 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
Part B premium Most people pay $144.60 each month.
Part B deductible and coinsurance $198 per year. After your deductible, you typically pay 20% of the Medicare-approved amount for most doctor services (including most doctor services while you’re a hospital inpatient), outpatient therapy, and durable medical equipment.
Part C premium The Part C monthly premium varies by plan. Compare costs for specific Part C plans.
Part D premium Then, Part D monthly premium varies by plan (higher-income consumers may pay more). Compare costs for specific Part D plans.

 

Medicare costs are essential to understand BEFORE coverage begins. You don’t want sticker shock after a hospital visit or doctor’s appointment.

Many people have the impression Medicare is Free at age 65 AND covers everything in full; however, this isn’t the case. Medicare only covers 80% of costs after you pay the corresponding deductible.

Below we go into great detail about Medicare costs for 2020. Keep reading to learn about the premiums, deductibles, coinsurances, and copayments.

Original Medicare Costs 2020

Many people wonder, “How much are Medicare Premiums?” or “What does Medicare cost?” Well, if you’re looking for those answers, we have them!

We understand the only way to confidently manage a healthcare budget is to maintain an understanding of coverage. So, we update content to stay relevant to beneficiaries in today’s market.

First, we’ll discuss the premiums as well as costs relating to Part A and Part B. Next; we’ll address other standard Medicare costs. Including Part C, D, and Medigap.

Further, we go over late enrollment penalties and how to avoid them. When you finish this article, you’ll be ready to manage all your Medicare expenses.

Plus, you may learn a new way to save money on while on Medicare!

Medicare Coinsurance Costs

Medicare covers 80% of the medicare-approved amount on Part A and Part B services after meeting the deductible; you must pay 20%.

With Part B, doctors that don’t accept Medicare assignment can charge a Part B excess charge; this charge can be up to 15%.

Many Medicare Supplement plans will cover the 20% you’d otherwise pay.

Medicare Part A Costs

You must be a resident of the United States or have a green card for a minimum of five years to be Medicare eligible. Part A consists of premium, deductible, coinsurance, and copayment costs.

A Medicare Supplement can help cover some Part A expenses.

Part A Premium

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.

Medicare Inpatient Deductible

The Part A deductible is a beast that many aren’t expecting. For 2020, 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.

So, let’s say Matt goes to the hospital in January and pays the deductible. Well, 60 days later, when he’s an inpatient again, he’s going to pay the deductible AGAIN.

Many Medigap plans cover the Part A deductible, leaving you worry-free.

Part A Copayments

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 in 2020 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.

Cost of Medicare Part B

You must be eligible for and enrolling in Part A to obtain Part B. Costs to consider include premium, deductible, and coinsurance.

Further, delaying enrollment in Part B could result in a late penalty unless you have “creditable coverage.”

So, if Matt has group coverage through a large employer, he may be able to delay enrollment without fear of penalization. However, you must speak with the benefits administrator to understand if your coverage is creditable.

If Matt delays enrollment and has small employer coverage, he may end up paying %10 more for every year he goes without Part B.

He may need to wait until the General Enrollment Period to sign up, causing further delay and an increase in penalties.

Many people buy Medigap to help cover the costs of care because, without extra coverage, Medicare can be expensive.

Medicare Part B Premium 2020

The Part B premium can come out of your social security check. For 2020, the standard monthly cost of Part B is $144.60.

Although premiums for Part B are Income-Related Monthly Adjustment Amounts based on the two previous years; so, in 2020, your income from 2018 will determine the monthly premium.

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.

There was a Social Security COLA increase, forcing those under the “hold harmless” provision paying less to pay the full amount.

How Much is the Part B Deductible for 2020

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.

If you don’ meet the deductible before a doctor’s appointment or Durable Medical Equipment purchase, you’ll reach it at that time.

Do You Pay Part B Premium With Medicare Advantage

You must pay your Part B premium if you want to keep your Medicare Advantage plan. Although depending on the area you live in, a Medicare Advantage Part B “return of premium” plan may be available.

For most, you’ll need to pay both the Medicare Advantage plan and the Part B premium.


Medicare Advantage Plan Costs

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 Premium is great until you get sick and need real coverage.

If Matt has a Medicare Advantage plan while he’s in the hospital, he’ll pay something like $450 each day for days 1 through 6. Further, if he took an ambulance to the hospital, his cost could be an additional $300 for the ride.

Then, when Matt leaves the hospital, he’ll need to pay $65 copayments to see a specialist. Well, when Matt goes to order his Home Oxygen for a Medicare Durable Medical Equipment supplier, his costs are likely to be 20% even with advantage coverage.

These plans only need to cover as good as Medicare. Although, they at least have a Maximum Out Of Pocket (MOOP), which is more protection than only Medicare.

Let’s say the MOOP is $6,000, and Matt’s hospital costs were $50,000. Well, Matt would pay $6,000 out of pocket; then, the plan covers the rest in full.

While this is much better than Medicare’s not out of pocket maximum, Medigap coverage would’ve been cheaper. The average cost of Plan G for a 65-year-old is about $130, multiply that by 12 monthly payments, and the price is $1,560 for the year.

Even when you pay the Part B deductible yourself, the cost is still WAY less than the $6,000 MOOP.

A low premium doesn’t always equate to HUGE savings.

Medicare Advantage Deductible

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.

The Part D deductible only applies to drug costs.

Medicare Part D Cost for 2020

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.

In 2020, no Medicare Supplements on the market include Part D. However, for those that take a small number of generic mediations, some Part D plans are as low as $15 a month!

Call an agent today to find out about the cost of Part D near you!

Medicare Supplement Cost 2020

Are you new to Medicare? You may qualify for the Medigap Open Enrollment Period, which means you get a policy with no medical underwriting.

Have you been on Medicare for a while? No problem! Our agents help people find the most affordable Medigap rates from top insurance carriers nationwide.

Medicare Supplement plans vary in premiums; a Plan N is usually less than Plan F when in the same service area. Although high deductible plan options can have much smaller monthly costs.

The Medicare Supplement deductible for 2020 is $2,340. Once you meet that amount, the deductible phase ends, and standard coverage begins.

Medigap plans help to alleviate the burden of Medicare copayments, deductibles, and coinsurances. To find Medigap coverage at an affordable rate, give one of our agents a call at the number above!

Can’t call right now? Fill out an online rate form and get one step closer to more affordable Medicare costs.