The Centers for Medicare & Medicaid Services (CMS) recently announced next year’s premiums for Medicare Parts A and B.
As generally happens, the premiums for Medicare Part B will be higher in 2020 than it was this year. Each year the Medicare premiums, deductibles, and copayment rates are adjusted according to the Social Security Act.
2020 Medicare Part B Premiums
For 2020, the standard monthly premium for Medicare Part B enrollees will be $144.60, an increase of $9.10 from $135.50 in 2019. The annual deductible for all Medicare Part B beneficiaries is $198 in 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.
Medicare Part B Income-Related Monthly Adjustment Amounts
Since 2007, a beneficiary’s Part B monthly premium is based on his or her income. These income-related monthly adjustment amounts (IRMAA) affect roughly 7 percent of people with Medicare Part B.
The 2020 Part B total premiums for high income beneficiaries are shown in the following table:
| Beneficiaries who file individual tax returns with income: | Beneficiaries who filejoint tax returns with income: | Income-related monthly adjustment amount | Total monthly premium amount |
| Less than or equal to $87,000 | Less than or equal to $174,000 | $0.00 | $144.60 |
| Greater than $87,000 and less than or equal to $109,000 | Greater than $174,000 and less than or equal to $218,000 | 57.80 | 202.40 |
| Greater than $109,000 and less than or equal to $136,000 | Greater than $218,000 and less than or equal to $272,000 | 144.60 | 289.20 |
| Greater than $136,000 and less than or equal to $163,000 | Greater than $272,000 and less than or equal to $326,000 | 231.40 | 376.00 |
| Greater than $163,000 and less than $500,000 | Greater than $326,000 and less than $750,000 | 318.10 | 462.70 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | 347.00 | 491.60 |
Premiums for high-income beneficiaries who are married and lived with their spouse at any time during the taxable year, but file a separate return, are as follows:
| Beneficiaries who are married and lived with their spouses at any time during the year, but who file separate tax returns from their spouses: | Income-related monthly adjustment amount | Total monthly premium amount |
| Less than or equal to $87,000 | $0.00 | $144.60 |
| Greater than $87,000 and less than $413,000 | 318.10 | 462.70 |
| Greater than or equal to $413,000 | 347.00 | 491.60 |
