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.
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