Medicare Costs in 2020
How much does Medicare cost in 2020? The cost of Original Medicare includes premiums, deductibles, and coinsurance for Medicare Part A and Part B. In addition, we will get you Medicare Part D prescription drug costs in 2020. So you can estimate all your heath care costs in 2020.
Medicare Part A Costs in 2020
The premium cost of Medicare Part A depends on the number of quarters you worked. Most people have worked 40 quarters or more, so Part A premium cost is zero. The Part A deductible is $1408 in 2020 for each benefit period of 60 days or less. For example, January, 2020 you are hospital inpatient and pay $1408 deductible. Then in April, 2020 you are hospital inpatient and must pay $1408 deductible again. Therefore, the worst case scenario a Medicare beneficiary goes in and out of the hospital 6 times in the year and pays maximum $8,448 total in Part A deductibles. To avoid this expensive possibility you could buy a Medicare Supplement Plan by calling Senior Healthcare Direct at 1-855-368-4717 or get a quote.
The coinsurance of Medicare Part A is $0 for the first 60 days of inpatient hospitalization. However, coinsurance costs for days 61 thru 90 is $352 per day in 2020. In other words, the coinsurance costs for these 29 days is $10,208. You can avoid these expensive out-of-pocket costs when you buy a Medigap Plan such as Medicare Plan G.
Skilled Nursing Facility coinsurance costs is $0 in 2020 for the first 20 days. However, coinsurance costs for days 21 to 100 is $176 per day. Your share of Medicare costs during these 79 days in a skilled nursing facility totals $13,904. Furthermore, after 100 days you are responsible for all skilled nursing facility costs.
For medical coverage to visit a doctor’s office and get preventive services such as annual flu shot and annual wellness visit, you need Medicare Part B.
Medicare Part B Costs in 2020
The standard Part B premium is $144.60 in 2020. However, high earners pay more. The part B deductible is $198 in 2020 and coinsurance is 20% of Medicare-approved medical costs. For quick reference of Medicare Costs in 2020 click the infographic below to embed and/or download it.
Medicare Part B covers the cost of ground ambulance transportation to a hospital or skilled nursing facility. In addition, Part B covers the cost of outpatient medical stays at any hospital or other facility for less than 24 hours. Furthermore, Medicare Part B covers the cost of preventive services such as your annual flu shot and annual wellness visit.
Medicare Part D Costs in 2020
Similar to Part B, Medicare Part D prescription drug costs varies based on income. If your tax return income in 2018 was $87,000 or less (either filed individually or filed married with separate tax return) or $174,000 or less filed jointly, then you only pay the plan premium in 2020. In most states, plan premiums start around $10 – $15 per month. However, if your tax returns in 2018 were higher, then you pay more than the plan premium. Get more details on Part D premiums by income. For quick reference of Medicare Part D Costs in 2020 click the infographic below to embed and/or download it.
In addition, you can learn more about Medicare Part D and how to avoid late enrollment penalty. Furthermore, discover how you can switch from Medicare Advantage to Original Medicare plus Part D plan during Open Enrollment January 1 – March 31, 2020.
Common Questions About Medicare Costs
Yes, Social Security Administration will automatically deduct Medicare premium from your monthly benefit. This monthly deduction is usually only for Medicare Part B premium, since most people pay no premium for Part A.
Yes, your Medicare Part D prescription drug plan can be deducted from your Social Security payment. However, it could take up to 3 months from the time you request premium with withheld before you start seeing premiums deducted from your Social Security payment.
Yes, Medicare Part A, B and D premiums are tax deductible under the following conditions. Based on your age and tax year these Medicare premiums must be 7.5% to 10% of your adjusted gross income. We advise you consult a tax professional for guidance before deducting Medicare premiums.
How Much Will Medicare Cost You?
There are a number of insurance underwriting factors that go into the cost of Medicare premiums. When applying for Medicare outside of your initial Open Enrollment Period (OEP), you will have to answer underwriting questions. Certain health conditions can increase your monthly premiums. However, if you are new to Medicare and applying during your Open Enrollment Period, then your health condition will NOT increase your premiums. Thus, the best time to apply for Medicare is when you are first eligible during this 7-month Open Enrollment period: 3 months before you turn 65, the month you turn 65, and 3 months after you turn 65.
When you are ready to get an exact quote on your Medicare costs, call Senior Healthcare Direct at 1-855-368-4717 or click the button below to get your quote.