The CMS announced it will increase Medicare Part B premiums about 6.7% for most enrollees in 2020. The 2020 increase is up from an increase of 1.1% in 2019, and up from no increase in 2018. The annual Part B deductible will increase 7%, to $198. The Social Security Administration recently announced 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 Part B premiums.
| Beneficiaries who file individual tax returns with income: | Beneficiaries who file joint tax returns with income: | Income-related monthly adjustment amount | Total monthly premium amount |
|---|---|---|---|
| Less than or equal to $87,000 | Less than or equal to $174,000 | $0.00 | $144.60 |
| Greater than $87,000 and less than or equal to $109,000 | Greater than $174,000 and less than or equal to $218,000 | $57.80 | $202.40 |
| Greater than $109,000 and less than or equal to $136,000 | Greater than $218,000 and less than or equal to $272,000 | $144.60 | $289.20 |
| Greater than $136,000 and less than or equal to $163,000 | Greater than $272,000 and less than or equal to $326,000 | $231.40 | $376.00 |
| Greater than $163,000 and less than $500,000 | Greater than $326,000 and less than $750,000 | $318.10 | $462.70 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | $347.00 | $491.60 |
The average deductible for Part A is slated to rise 3.2%, or $44, to $1,408 in 2020. About 99% of Medicare beneficiaries don’t pay premiums for Part A coverage because they have at least 40 quarters of Medicare-covered employment. In September, the CMS announced premiums for Medicare Advantage will hit their lowest point in the last 13 years in 2020: average monthly M/A premiums are expected to decrease 14.4% from $26.87 in 2019 to $23 next year. The CMS is preparing to publish the official 2020 Medicare rate notices in the Federal Register Nov. 13. A preview of the Part A notice is available here, and a preview of the Part B notice is available here.
ARTICLE based on FACT SHEET
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B11121904
