Medicare Changes for 2020: New Premiums, Deductibles, and Benefits
Every year Medicare costs and benefits change. Here is a complete summary of what is changing for Medicare beneficiaries in 2020 -- premiums, deductibles, and new coverage expansions.
Medicare Changes for 2020: New Premiums, Deductibles, and Benefits
Medicare costs and benefits change every January 1. Here is a complete summary of the key changes for 2020 that affect Medicare beneficiaries.
Part B Premium and Deductible
2020 standard Part B premium: $144.60/month (up from $135.50 in 2019 -- an increase of $9.10/month).
2020 Part B deductible: $198 (up from $185 in 2019).
The Part B premium increase is larger than in recent years, driven by projected increases in healthcare spending and the potential cost of new Alzheimer's treatments.
Part A Costs
2020 Part A deductible: $1,408 per benefit period (up from $1,364 in 2019).
Skilled nursing facility coinsurance:
- Days 1-20: $0
- Days 21-100: $176/day (up from $170.50 in 2019)
- After day 100: 100% -- Medicare pays nothing
IRMAA Thresholds for 2020
High-income beneficiaries pay IRMAA surcharges on Part B and Part D. The 2020 IRMAA thresholds (based on 2018 income) are:
| 2018 MAGI (Individual) | Monthly Part B Premium |
|---|---|
| ≤ $87,000 | $144.60 |
| $87,001-$109,000 | $202.40 |
| $109,001-$136,000 | $289.20 |
| $136,001-$163,000 | $376.00 |
| $163,001-$499,999 | $462.70 |
| ≥ $500,000 | $491.60 |
Note: The $87,000 threshold is higher than 2019's $85,000 -- some beneficiaries who paid IRMAA in 2019 may not pay it in 2020.
Plan F Closed to New Enrollees
Starting January 1, 2020, Medigap Plan F (and Plan C) are no longer available to people who are newly eligible for Medicare. People who became eligible for Medicare before January 1, 2020 can still enroll in Plan F.
What this means: New Medicare enrollees in 2020 and beyond must choose Plan G (or another plan) instead of Plan F. Plan G covers everything Plan F covers except the Part B deductible ($198 in 2020).
New Medicare Advantage Benefits for 2020
CMS expanded the types of supplemental benefits MA plans can offer in 2020, including:
-
Primarily health-related benefits: Plans can now cover benefits that are not primarily medical but have a reasonable expectation of improving health -- such as home modifications for safety, transportation to non-medical destinations, and meal delivery beyond post-hospitalization.
-
Special Supplemental Benefits for the Chronically Ill (SSBCI): Plans can offer additional benefits specifically for members with chronic conditions -- including home-based palliative care, adult day health services, and caregiver support.
Part D Changes for 2020
Standard Part D deductible: Up to $435 (up from $415 in 2019).
Initial coverage limit: $4,020 (up from $3,820 in 2019).
Out-of-pocket threshold (catastrophic): $6,350 (up from $5,100 in 2019).
Donut hole: The coverage gap (donut hole) is effectively closed for generic drugs -- you pay no more than 25% for generics in the gap. For brand-name drugs, you pay 25% in the gap.
Telehealth Expansion
Medicare expanded telehealth coverage in 2020, adding new services that can be provided via video -- including certain mental health services and opioid use disorder treatment.
We do not offer every plan available in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.
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About the Author
William Gray
Independent Medicare BrokerUS Air Force Veteran · Florida Medicare Specialist
William Gray is an independent Medicare insurance broker based in Daytona Beach and Palm Coast, FL. A US Air Force veteran (A-10 crew chief, Germany), he spent years in corporate insurance before going independent to serve Florida seniors directly. He has helped more than 1,000 clients across Northeast Florida compare Medicare Advantage, Medigap, and Part D plans — always at no cost to the client.
