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|