The 2020 Medicare Costs such as premiums deductibles coinsurance amounts have been officially updated. Social security saw a rather small increase of only 1.6%, which will be eaten up by Medicare’s Part B premium increase that’s why I’m not even really talking about that (you can’t give on one side and take on the other and call it an increase!).
2020 Medicare Costs - Part A Deductible & Coinsurance
- Inpatient hospital deductible: $1,408.00
- Daily Coinsurance Days 61-90: $352.00
- Daily Coinsurance-Lifetime Reserve: $704.00
- Skilled Nursing Facility Days 21-100: $176.00
2020 Medicare Costs - Part B Premium & Deductible
- Standard Monthly Premium: $144.60
- Annual Deductible: $198.00
2020 Medicare Costs for PART D
There have been some changes with 2020 Medicare Part D plans as well. The big news was CVS purchased Aetna but in order for them to do so, Aetna had to sell all of its Part D plans. WellCare, another 2020 Medicare Part D company, purchased all of Aetna’s Part D plans. Those clients that were on an Aetna Part D plan are now going to rollover into a WellCare Plan.
Humana made another huge change to their Part D plan, Humana Walmart. If you have the Humana Walmart plan, you should have received a letter from the carrier in September or October of 2019 explaining that you’re being rolled over into what’s called Humana Premier plan and the premiums are going to be around $56 per month depending on where you live. This is a very high increase specifically because most clients on plan this plan who are taking only a few generic medications. If you have that plan, you do not have to take that roll over. There are other options out there. Humana also has another Walmart plan for around $13 which you might consider but you have to take your medication into account.
Medicare Part D plans are not easy to talk about when you don’t know what the person reading this article is taking for medications, it’s important to understand that.
2020 MEDICARE ADVANTAGE
Medicare Advantage have a lower monthly premium. However, it requires you to pay some bills when you use the Plan. You will have copays, co-insurance and sometimes a deductible. Furthermore, you have to go to certain Doctors, Hospitals and other Providers (HMO / PPO). Most importantly, it has a max out of pocket for your protection. Therefore, once you have paid a certain amount, the plan will pay the rest of your healthcare cost.Medicare Advantage plans may include added benefits like dental, vision, even a gym membership. For 2020 we have few plans here in the Tampa Bay area with a very low maximum-out-of-pocket of $1900 and $0 per month premium. Of course you have to take into account your health and the network in your area. Medicare Advantage pans are not like Supplement plans, they have to be choose based on how your health is now and trying to predict future needs so that you can budget your options.
2020 Medicare Supplements
If you have a Medicare Supplement Plan (also know as Medigap) Medicare Parts A and B are your primary insurance and 2020 Supplement Plan pays the bills that Medicare would normally make you pay. Medigap Insurance is an insurance plan that will assist you in paying for some of costs that Medicare Parts A and B doesn’t pay.
Original Medicare does not cover all of your medical costs, it will only pay 80% of your medical bills. You are required to cover the remaining 20% but there is no cap or max-out-of-pocket for that 20%. Without Medigap Insurance (Medicare Supplement) you are left fully exposed to that 20%.
You can go to any Doctor, Hospital, or Provider in the Country that accepts Medicare. Moreover, you will very rarely have a healthcare cost other than your monthly premium. My favorite Supplement Plan is the Plan G, once you pay the first $198.00 of your medical bills, you are done for the rest of the year. Plan G in the Tampa Bay Area run usually around $150 to $200 per month.
One important thing to remember when choosing between a 2020 Medicare Advantage plan and a 2020 Medicare Supplement: If you chose a Medicare Advantage plan and later you want to upgrade to a Medicare Supplement plan, you are subjected to medically qualify. This is a huge factor in making a final decision between the two plans. If you develop health problems and you get sick and tired of reaching your maximum out of pocket for your Advantage plan every year, you might not be able to switch because of your health. This is something to consider before hand.