2020 Medicare and Social Security Updates: Premiums Deductibles Coinsurance

The Medicare premiums, deductibles and co-payment amounts have been officially updated for 2020. Social security saw a rather small increase of only 1.6%, which will be eaten up by Medicare’s Part B premium increase.

2020 Medicare Part A Deductible and Coinsurance

  • Inpatient hospital deductible: $1,408.00
  • Daily Coinsurance Days 61-90: $352.00
  • Daily Coinsurance-Lifetime Reserve: $704.00
  • Skilled Nursing Facility Days 21-100: $176.00

2020 Medicare Part B Premium and Annual Deductible

  • Standard Monthly Premium: $144.60
  • Annual Deductible: $198.00

How will the Medicare Part B annual deductible increasing impact you if you have a 2020 Medicare Supplement? The 2020 Medicare Supplement Plan F deductible is paid for you. So you would not have to worry about that increase as far as what your out-of-pocket costs are going to be. If you have the 2020 Medicare Supplement Plan G, then the only out-of-pocket cost that’s going to increase for you is the Part B deductible going up $13.00 from $185 to $198. If you have the 2020 Medicare Supplement Plan N, the only out-of-pocket increase will be the Part B deductible as well. The co-pays will stay the same as well as the Part B excess charges.

Many people are asking if the Plan F will be a better option than the Plan G because the Part B deductible increased. Look at it from the carrier’s perspective: Imagine that Plan F and Plan G both have one million people in each plan and the Part B deductible increased by $13.00. The Plan F is now going to have to pay an additional $13 million out of their budget to cover the deductible increase for their clients. However, the one million people in the Plan G all pay their own deductible so the insurance company is not going to have to pay any more money for their clients in the Plan G to cover that deductible increase because all of those clients already pay their own deductible. In this situation, it’s much more likely that the Plan F is going to see the more significant premium increase to make up for the $13 million increase.

Medicare Part D plans

There have been some changes with 2020 Medicare Part D plans as well. CVS purchased Aetna but in order for them to do so, Aetna had to sell all of its Part D plans. WellCare, another 2020 Medicare Part D company, purchased all of Aetna’s Part D plans. Those clients that were on an Aetna Part D plan are now going to rollover into a WellCare Plan.

Humana made another huge change to their Part D plan, Humana Walmart. If you have the Humana Walmart plan, you should have received a letter from the carrier in September or October explaining that you’re being rolled over into what’s called Humana Premier plan and the premiums are going to be around $56 to $60 per month depending on where you live. This is a very high increase specifically because most clients on the Humana Walmart plan are taking only a few generic medications. If you have that plan, you do not have to take that roll over. There are other options out there. You have until December 7th to shop your options which we can help you.

There are also two types of plans to look at this annual enrollment period: 2020 Medicare Advantage and Medicare Supplement.

2020 Medicare Advantage

Summary of a Medicare Advantage Plan:

A Private Company provides a health plan that you will use instead of using your traditional Medicare.

Medicare Advantage has a lower monthly premium. However, it requires you to pay some bills when you use the Plan. You will have copays, co-insurance and sometimes a deductible. Furthermore, you have to go to certain Doctors, Hospitals and other Providers (HMO / PPO). Most importantly, it has a max out of pocket for your protection. Therefore, once you have paid a certain amount, the plan will pay the rest of your healthcare cost. For example, in 2019 most HMO’s max out of pocket were around $4,000.00 and the PPO Plans were around $6,700.00. Lastly, Medicare Advantage plans may  include added benefits like dental, vision, even a gym membership.

2020 Medicare Supplement Plan

Summary of a Medicare Supplement Plan:

Medicare ( Parts A and B ) are your primary insurance and 2020 Supplement Plan pays the bills that Medicare would normally make you pay.

You can go to any Doctor, Hospital, or Provider in the Country that accepts Medicare. Moreover, you will very rarely have a healthcare cost other than your monthly premium. (My favorite Supplement Plan is the Plan G, once you pay the first $198.00 of your medical bills, you are done for the rest of the year!) However, it does have a higher monthly premium then a Medicare Advantage Plan. For example, a Supplement is usually between $80.00 and $120.00 per month.

One important thing to remember when choosing between a 2020 Medicare Advantage plan and a 2020 Medicare Supplement: if you chose a Medicare Advantage plan and later you want to upgrade to a Medicare Supplement plan, you are subjected to medically qualify. This is a huge factor in making a final decision between the two plans.

If you have any questions regarding Medicare, please give our office a call at 1-855-368-4717 or visit one of our pages:

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