Medicare benefits are subject to change with each year, which can mean the amount you pay out of pocket for the Part B (medical insurance) premium and deductible can go up. 2020’s changes to the Medicare Part B premium may also be dependent on the recipient’s tax filing status for 2018.

Changes to the 2020 Monthly Premium 

The minimum premium for Part B coverage in 2020 is $144.60 each month, which is a $9 increase from 2019’s minimum premium of $135.50 each month. In 2020, certain income brackets that determine if high-income recipients pay more for their Part B premium each month were changed for the first time.

If you filed an individual tax return in 2018 and your income was:

  • less than $87,000, you pay $144.60 a month in 2020.
  • between $87,000 and $109,000, you pay $202.40 a month in 2020.
  • between $109,000 and $136,000, you pay $289.20 a month in 2020.
  • between $136,000 and $163,000, you pay $376.20 a month in 2020.
  • between $163,000 and $500,000, you pay $462.70 a month in 2020.
  • more than $500,000, you pay $491.60 a month in 2020.

If you filed a joint tax return in 2018 and your income was:

  • less than $174,000, you pay $144.60 a month in 2020.
  • between $174,000 and $218,000, you pay $202.40 a month in 2020.
  • between $218,000 and $272,000, you pay $289.20 a month in 2020.
  • between $272,000 and $326,000, you pay $376.20 a month in 2020.
  • between $326,000 and $750,000, you pay $462.70 a month in 2020.
  • more than $750,000, you pay $491.60 a month in 2020.

If you were married but filed separately and your income was:

  • less than $87,000, you pay $144.60 a month in 2020.
  • between $87,000 and $413,000, you pay $462.70 a month in 2020.
  • more than $413,000, you pay $491.60 a month in 2020.

The Part B premium can be scaled to the Social Security cost-of-living adjustment (COLA) if the rise in a premium is more than the change in a retiree’s Social Security benefit. For 2020, the COLA is 1.6%; if this change in a beneficiary’s Social Security payment does not cover the rise in their premium cost, their premium will only increase by 1.6% of the prior year’s premium.

If you qualify as a dual eligible enrollee with Medicare and Medicaid, your Medicare premium will be $144.60 a month and is paid by Medicaid.

Changes to the 2020 Annual Deductible                        

Medicare recipients must meet an annual deductible with Medicare Part B, which is $198 for 2020. If a Medicare enrollee was eligible for a Medigap plan that pays for the Part B deductible prior to 2020, they can still receive that benefit. Medigap plans that pay the Part B deductible are no longer offered as of January 1st, 2020.

Medicare benefits can be combined with Medicaid for certain low-income recipients, which also includes covering cost-sharing obligations like the deductible. Medicare Advantage plans can also offer lower deductibles as part of the benefits paid by the monthly premium they charge on top of the requisite Part B premium. These plans are offered by third-party insurers and may only be available in certain locations.

Medicare has not changed policies that determine share-of-cost obligations regarding copayments or coinsurance amounts for 2020.

Related articles:

Do Social Security Recipients Get Cost of Living Increases? (Opens in a new browser tab)

How Much is Medicare Coinsurance in 2020?(Opens in a new browser tab)