If you are enrolling in Medicare this year, you must understand some significant changes that are happening to Medicare in 2020.
There are four big changes happening in 2020:
1: As you all know, most of you will pay nothing for Medicare Part A premiums, because you qualify through working at least 40-quarters. You have been “pre-paying” Part A premiums through payroll taxes.
However, Medicare Part B is a different story.
Medicare Part B covers your doctor’s visits, your lab test, your durable medical equipment, and things of that nature. Medicare Part B premiums are taken directly out of your Social Security check if you are claiming Social Security.
In 2019, the premium for Medicare Part B was $135.50 a month. However, effective on January 1, 2020, Medicare Part B will now cost $144.60 a month.
For those of you that are drawing Social Security, there is a rule called “hold harmless,” and it says that Medicare Part B can’t increase its rate more than your Social Security cost of living check increases.
2: Additionally, the deductible for Medicare Part B is increasing. In 2019, the Part B deductible was $185, and now in 2020, it increased to $198.
With all of this said, these increases will depend on which plan you have, whether it’s Original Medicare or Medicare Advantage, it may or may not impact you.
3: With all the changes to Part B, there is also a change to people who have higher incomes. The rule for 2020 states if your modified adjusted gross income is more than $87,011 filing as an individual, or $174,001 filing taxes as a couple, you will pay more for Medicare. This is slightly higher than the 2019 threshold.
4: Plan F is no longer available for people to join as of January 1, 2020. I talk about how this works in detail on my workshop and why this isn’t necessarily a bad thing, but if you were set on Plan F, you will need to find a different option.
As you approach this year and your Medicare decision, be sure to take into account these price increases.
Medicare is complicated, but it doesn’t have to be. At the Medicare Coach, we are truly independent. We don’t receive any money or commissions from insurance companies, and for that reason, our guidance and advice is unbiased.
To easily make your right Medicare decision, sign up for our Medicare Enrollment Concierge by CLICKING HERE.
