Prices have risen slightly this year, but there aren’t many surprises for Medicare costs in 2020.
You can avoid many of the charges below by adding Medicare Supplement or Medicare Advantage coverage.
Medicare Part A Costs
Medicare Part A covers inpatient stays in hospitals and skilled nursing facilities, as well as home health care and hospice. You need to keep Part A and B to get additional coverage such as a Medicare supplement plan or Medicare Advantage plan.
2020 Part A Monthly Premium
- Most people don’t pay a Part A premium because they paid Medicare taxes while working.
- If you didn’t qualify for premium-free Part A, you’ll pay up to $458 per month.
- If you almost qualified for premium-free Part A by working 30 quarters, you’ll pay up to $252 per month.
2020 Medicare Hospital Stay
A benefit period begins once you’re admitted to the hospital. In 2020, you’ll pay:
- $1,408 deductible per benefit period (this was $1,364 in 2019)
- $352 per day for days 61–90 of each benefit period (this was $341 in 2019)
- $704 per “lifetime reserve day” after day 90 of each benefit period, up to a maximum of 60 days over your lifetime (this was $682 in 2019)
Some Medicare Supplement plans pay for these costs in full.
2020 Skilled Nursing Facility Medicare Stay
In 2020, you pay:
- $0 for the first 20 days of each benefit period
- $176 per day for days 21–100 of each benefit period
- All costs for each day after day 100 of the benefit period
Certain Medicare Supplement plans completely cover these costs.
Medicare Part B Costs
Medicare Part B generally covers preventive services and outpatient care – including general practitioners and same-day procedures. You need Part A and B to get supplemental coverage.
2020 Part B Monthly Premium
The standard Part B premium in 2020 is $144.60 per month.
However, if your Medicare premiums are paid directly from your Social Security benefits, Medicare cannot cause you to receive less Social Security than you did in the previous year. Accordingly, some people who receive Social Security benefits pay less than $144.60.
You pay the standard premium amount (or higher) if:
- You enroll in Part B for the first time in 2020.
- You don’t get Social Security benefits.
- You’re directly billed for your Part B premiums.
- You’re dual-eligible for Medicare and Medicaid, and Medicaid pays your premiums. (Your state will pay the standard premium amount of $144.60 in 2020.)
If your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount, here’s what you’ll pay:
| If your yearly income in 2018 was: | You pay (in 2020): | ||
| File individual tax return | File joint tax return | File married & separate tax return | |
| $87,000 or less | $174,000 or less | $87,000 or less | $144.60 |
| above $87,000 up to $109,000 | above $174,000 up to $218,000 | not applicable | $202.40 |
| above $109,000 up to $136,000 | above $218,000 up to $272,000 | not applicable | $289.20 |
| above $136,000 up to $163,000 | above $272,000 up to $326,000 | not applicable | $376.20 |
| above $163,000 up to $500,000 | above $326,000 up to $750,000 | above $87,000 up to $413,000 | $462.70 |
| above $500,000 | above $750,000 | above $413,000 | $491.60 |
If you pay a Part B late enrollment penalty, these amounts may be higher.
2020 Part B Deductible
The Medicare Part B deductible is $198 per year. Once you spend this amount, Medicare will contribute to your medical costs.
Medicare Advantage (Part C) Costs
Medicare Part C describes private insurance plans that act as an optional replacement for Part A and Part B. Part C members still pay Part B premiums.
Medicare Advantage Premiums
Average Medicare Advantage premiums are projected to drop to $23.00 in 2020.1 Although each Medicare Advantage plan is different, the government believes that monthly Medicare Advantage premiums have decreased since 2017 when they were $31.91.2
2020 Medicare Advantage Maximum Out-of-Pocket Cost
In 2020, the maximum out-of-pocket cost for those with Medicare Advantage is $6,700. You won’t have to pay a penny more than this amount for services that would have been covered under Original Medicare (Parts A & B).
However, this only applies to services that would have been covered under Original Medicare. Additional services in certain Part C plans – such as SilverSneakers, weight loss programs or RX drugs – can exceed this limit.
Medicare Prescription Drug Plans (Part D) Costs
Medicare Part D is an optional RX drug help that works with Medicare. People cannot be denied coverage due to health reasons.
2020 Part D Deductible
The annual deductible for Part D prescription drug coverage in a standalone Part D drug plan or a Medicare Advantage (Part C) plan is $435.
2020 Part D Monthly Premium
Average Part D premiums are expected to fall to $30 in 2020.3 The average Part D premium has been between $30 and $35 per month for over a decade.
The chart below shows your estimated prescription drug plan monthly adjustments (an additional amount based on income, that is added on top of the plan premium.) If your income is above a certain limit, you will pay an income-related monthly adjustment amount in addition to your plan premium.
| If your yearly income in 2018 was: | You pay(in 2020): | ||
| File individual tax return | File joint tax return | File married & separate tax return | |
| $87,000 or less | $174,000 or less | $87,000 or less | Your plan premium |
| above $87,000 up to $109,000 | above $174,000 up to $218,000 | not applicable | $12.20 + your plan premium |
| above $109,000 up to $136,000 | above $218,000 up to $272000 | not applicable | $31.50 + your plan premium |
| above $136,000 up to $163,000 | above $272,000 up to $326,000 | not applicable | $50.70 + your plan premium |
| above $163,000 up to $500,000 | above $326,000 up to $750,000 | above $87,000 up to $413,000 | $70.00 + your plan premium |
| above $500,000 | above $750,000 | above $413,000 | $76.40 + your plan premium |
2020 Part D National Base Beneficiary Premium
The Part D base premium is $32.74, a decrease of $0.45 from last year. This figure is used to estimate the Part D late enrollment penalty and the income-related monthly adjustment amounts listed in the table above. The national base beneficiary premium amount can change each year.
