MEDICARE
UPDATE
MEDICARE
PART B
PREMIUMS/
DEDUCTIBLES
Medicare Part B covers
physician services, outpa-
tient hospital services, certain
home health services, dura-
ble 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 Secu-
rity Act. For 2020, the Medicare
Part B monthly premiums and
the annual deductible are
higher than the 2019 amounts.
The standard monthly pre-
mium 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
42 | SPRING 2020
On November 8, 2019, the Centers
for Medicare & Medicaid Services
(CMS) released the 2020 premiums,
deductibles, and coinsurance amounts
for the Medicare Part A and Part B
programs.
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.
From day one, President
Trump has made it a top
priority to lower drug pric-
es. Currently, for Part B, the
law requires CMS to pay the
average sales price for a drug
and also pays physicians a
percentage of a drug’s sale
price. This incentivizes drug
companies to set prices
higher and for physicians to
prescribe more expensive
drugs – because that leads to
a higher Medicare payment.
Through the President’s drug
pricing blueprint, the Trump
Administration is working to
lower drug prices in Medicare
Part B drugs.
CMS is committed to em-
powering beneficiaries with
the information they need
to make informed decisions
about their Medicare cov-
erage options, including
providing new tools to help
them make those decisions
through the eMedicare initia-
tive. In addition to the recently
released premiums and cost
sharing information for 2020
Medicare Advantage and Part
D plans, we are releasing the
premiums and cost sharing
information for Fee-for-Service
Medicare, so beneficiaries
understand their options for
receiving Medicare benefits.
As previously announced, as a
result of CMS actions to drive
competition, on average for
2020, Medicare Advantage
premiums are expected to
decline by 23 percent from
2018, and will be the lowest in
the last thirteen years while
plan choices, benefits and en-
rollment continue to increase.
Premiums and deductibles
for Medicare Advantage and
Medicare Part D Prescription
Drug plans are already final-
ized and are unaffected by
this announcement.
CULLMAN COUNTY SENIOR MAGAZINE