Premiums and deductibles for people on traditional Medicare will increase in the new year.
What’s more, these increases for 2020 will be significantly greater than they were for 2019:
- 2020 Medicare Part B standard monthly premium: $144.60 per month, which is an increase of $9.10 per month from 2019. That’s compared with an increase of only $1.50 per month one year prior.
- 2020 Medicare Part B annual deductible: $198 per year, an increase of $13. That’s compared with an increase of $2 one year prior.
- 2020 Medicare Part A annual inpatient hospital deductible: $1,408 per benefit period, an increase of $44. That’s compared with an increase of $24 one year prior.
More bad news: The higher cost increases for 2020 will effectively negate much of the 1.6% cost-of-living adjustment (COLA) that will increase retirees’ monthly Social Security benefit payments in the new year. For the average retiree, the 2020 COLA translates to only an extra $24 a month.
This means it is imperative to your budget that you shop the market to make sure you are receiving the best prices for Medicare Advantage, Medicare Supplement and Medicare Prescription Drug Plans. Call Morton South at 843-936-0632 and let us help you shop the market.