We strive to keep you informed about the latest Medicare news. Each month, we recap the top information you need to know about recent developments in the Medicare industry. This month, we cover the 2020 Medicare Part B Premium and the Part D Donut Hole (or “Coverage Gap”).
2020 Medicare Part B Premium Information
You may have seen our blog about the Part B premium that was released in mid-November, but we want to make sure you have the information you need about the premium costs for this year.
If you’re currently enrolled in Medicare or plan to enroll in Medicare in 2020, your Part B premium as of January 1, 2020 will be as follows:
2020 Standard Part B Premium: $144.60 per month
Note: The 2019 standard Part B premium was $135.50.
2020 Part B Deductible: $198
Note: The 2019 Part B deductible was $185. Premiums and deductibles for Medicare Advantage and Medicare Prescription Drug Plans are already finalized and are unaffected by this announcement.
After the deductible is met, you typically pay 20 percent of the cost of services and Medicare covers the rest. When budgeting for your Part B expenses, note that there is no cap on the 20 percent that you will be responsible for paying.
If your income was above a certain level in 2018 (adjusted gross income of $87,000 per individual or $174,000 for a married couple filing jointly), you will pay a higher Part B premium in 2020.
2020 Income-Related Part B Premium Adjustment Amounts
Curious what Medicare Part B covers? Learn more.
What to Expect from the Medicare Donut Hole in 2020
As each year progresses, many retirees with high medication expenses worry about entering the Medicare Part D Donut Hole.
What is the Donut Hole?
The formal term for this period is called the “coverage gap.” It was originally called the donut hole or coverage gap because it refers to a gap in Medicare Part D prescription coverage. When Medicare beneficiaries reach this gap, their out-of-pocket cost responsibility increases.
In 2020, individuals will enter the donut hole once the value of their covered prescriptions has reached $4,021.
For more information about the donut hole closing, its history, and what to do if you hit the donut hole, check out our blog post.
We’d Love to Hear from You!
If you are not yet a RetireMEDiQ client and have questions about what these changes may mean as you approach retirement, contact our team of advisors at 1-866-600-5638.