2020 Medicare Part B Premiums Will
Eat Into Social Security COLA
The Centers for Medicare and Medicaid Services (CMS) announced on November 8 that the standard monthly premium for Medicare Part B will be $144.60 for 2020, an increase of $9.10 from $135.50 in 2019. This is a 7% increase for next year compared to the 1.6% Social Security Cost-of-Living Adjustment (COLA) for 2020 announced on October 10. The average increase for Social Security will be about $24 more each month.
CMS said the increase in the Part B premiums and deductible is largely due to rising spending on physician-administered drugs.
Since 2007, a beneficiary’s Part B monthly premium has been based on an individual’s or couple’s tax return income. These income-related monthly adjustment amounts (IRMAA) affect roughly 7% of people with Medicare Part B. Click here to view the 2020 Part B total premiums for high income beneficiaries.
CMS also announced Medicare Part A premiums and deductibles on November 8. Medicare Part A covers inpatient hospital, skilled nursing facility and some home health care services. About 99% of Medicare beneficiaries do not have a Part A premium since they have at least 40 quarters of Medicare-covered employment.
The Medicare Part A inpatient hospital deductible that the other 1% of beneficiaries will pay when admitted to the hospital will be $1,408 in 2020, an increase of $44 from $1,364 in 2019. Click here if you want to review additional information on Medicare Part A.
