January - March 2020

Serving Our Seniors’ team of Medicare counselors offer free Medicare classes and counseling to Erie County residents, aged 60 and older. The Centers for Medicare and Medicaid Services for 2020 has provided the following update for 2020. 2020 Medicare Part B Premiums and Deductibles On November 8, 2019, the Centers for Medicare & Medicaid Services released the 2020 premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs. The information below explains Part B. Medicare Part B Premiums/Deductibles Medicare Part B covers physician services, outpatient hospital services, certain home health services, durable medical equipment and certain other medical and health services not covered by Medicare Part A. Each year the Medicare premiums, deductibles, and copayment rates are adjusted according to the Social Security Act. For 2020, the Medicare Part B monthly premiums and the annual deductible are higher than the 2019 amounts. The standard monthly premium for Medicare Part B enrollees will be $144.60 for 2020, an increase of $9.10 from $135.50 in 2019. The annual deductible for all Medicare Part B beneficiaries is $198 in 2020, an increase of $13 from the annual deductible of $185 in 2019. The increase in the Part B premiums and deductible is largely due to rising spending on physician-administered drugs. These higher costs have a ripple effect and result in higher Part B premiums and deductible. Medicare Part B Income-Related Monthly Adjustment Amounts Since 2007, a beneficiary’s Part B monthly premium is based on his or her income. These income-related monthly adjustment amounts (IRMAA) affect roughly 7 percent of people with Medicare Part B. The 2020 Part B total premiums for high income beneficiaries are shown in the following table: 2020 Medicare Part B Updates Beneficiaries who file Beneficiaries who file Income-related Total monthly individual tax returns joint tax returns monthly adjustment premium amount with income: with income: amount Less than or equal to Less than or equal to $0.00 $144.60 $87,000 $174,000 Greater than $87,000 Greater than $174,000 57.80 202.40 and less than or equal and less than or equal to $109,000 to $218,000 Greater than $109,000 Greater than $218,000 144.60 289.20 and less than or equal and less than or equal to $136,000 to $272,000 Greater than $136,000 Greater than $272,000 231.40 376.00 and less than or equal and less than or equal to $163,000 to $326,000 Greater than $163,000 Greater than $326,000 318.10 462.70 and less than $500,000 and less than $750,000 Greater than or equal to Greater than or equal to 347.00 491.60 $500,000 $750,000 Patricia Stineman, MSIG, CSA, Insurance Education Specialist / OSHIIP Trainer 10