2020 Medicare Part B Premiums Announced

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By on November 9, 2019 in Retirement with 0 Comments
Medicare news headline, inside of torn dollar bill

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 amountTotal monthly premium amount
Less than or equal to $87,000Less than or equal to $174,000$0.00$144.60
Greater than $87,000 and less than or equal to $109,000Greater than $174,000 and less than or equal to $218,00057.80202.40
Greater than $109,000 and less than or equal to $136,000Greater than $218,000 and less than or equal to $272,000144.60289.20
Greater than  $136,000 and less than or equal to $163,000Greater than $272,000 and less than or equal to $326,000231.40376.00
Greater than $163,000 and less than $500,000Greater than $326,000 and less than $750,000318.10462.70
Greater than or equal to $500,000Greater than or equal to $750,000347.00491.60

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 amountTotal monthly premium amount
Less than or equal to $87,000$0.00$144.60
Greater than $87,000 and less than $413,000 318.10462.70
Greater than or equal to $413,000347.00491.60

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Ian Smith is one of the co-founders of FedSmith.com. He enjoys writing about current topics that affect the federal workforce.

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