The Centers for Medicare and Medicaid Services (CMS) announced today that it will increase Medicare Part B premiums about 6.7% for most enrollees in 2020.
The Medicare Part B program is the part of “Original Medicare” that pays for physician services and hospital outpatient care.
The 2020 increase is up from an increase of just 1.1% in 2019, and up from no increase in 2018.
The 2020 increase “is largely due to rising spending on physician-administered drugs,” officials said in the rate announcement. “These higher costs have a ripple effect and result in higher Part B premiums.”
Here’s a look at how the monthly Part B premiums will change, by annual income level:
|Individual Filers||Joint Filers||Total 2020 Monthly Premium Amount||Total 2019 Monthly Premium Amount|
|with income:||with income:|
|Less than or equal to $87,000||Less than or equal to $174,000||$144.60||$135.50|
|Greater than $87,000 and less than or equal to $109,000||Greater than $174,000 and less than or equal to $218,000||$202.40||$189.60|
|Greater than $109,000 and less than or equal to $136,000||Greater than $218,000 and less than or equal to $272,000||$289.20||$270.90|
|Greater than $136,000 and less than or equal to $163,000||Greater than $272,000 and less than or equal to $326,000||$376.00||$352.20|
|Greater than $163,000 and less than $500 000||Greater than $326,000 and less than $750,000||$462.70||$433.40|
|Greater than or equal to $500,000||Greater than or equal to $750,000||$491.60||$460.50|
The annual Medicare Part B deductible will increase 7%, to $198. In 2019, the Medicare Part B deductible increased by just 1.1%.
Most people pay for Medicare Part A coverage, or Medicare hospitalization coverage, by paying payroll taxes over the course of their lives.
For people who do have to pay for Part A coverage themselves, the maximum possible monthly premium will increase 4.8%, to $458.
The Medicare Part A hospitalization deductible will rise 3.2%, to $1,408.
Medicare v. the Social Security Cost-of-Living Adjustment (COLA)
The Social Security Administration recently announced that the 2020 Social Security COLA will be 1.6%.
That means the size of the 2020 COLA will be much smaller than the 2020 increase in Medicare Part B premiums.
Officials at the Centers for Medicare and Medicaid Services, the agency that runs Medicare, are preparing to publish the official 2020 Medicare rate notices in the Federal Register Nov. 13. A preview copy of the Part A notice is available here, and a preview copy of the Part B notice is available here.
— Read Medicare Posts $1.6 Billion Loss, on ThinkAdvisor.