Medicare Cost 2020
Medicare is split into a few separate parts. Some of those parts come packaged together, such as in an Original Medicare plan or in a Medicare Advantage plan, but each of the disparate parts has its own expenses that you need to be aware of and that you need to pay when you sign up for one of them. The Medicare cost for 2020 is different than it was in 2019, and we want to help you navigate those costs and choose the right plan for your needs.
Medicare Part A
This is the inpatient medical expenses coverage that is included as part of Original or basic Medicare along with Part B. Under Part A, you are covered for hospital stays, surgeries, hospice care, some nursing care at skilled nursing care facilities and more. All of these expenses and services are related to inpatient care, meaning that you stay for some period of time at a medical facility.
Part A comes with a premium and a deductible, but most people will never have to pay a premium on this plan or they will have to pay a greatly reduced premium. Few people ever have to pay the full $437 monthly premium for Part A. The deductible can be covered by a supplementary insurance plan, known as a Medigap plan. This is a coverage plan that you purchase in addition to Medicare Part A.
Medicare Part B
This part of Medicare is for outpatient care, meaning that it covers short visits to the hospital, doctor’s office or other medical facility where you don’t stay there as part of your treatment. This means that Part B applies to all of the following, plus more medical expenses and services:
The majority of doctor services (including many inpatient services)
Therapy for outpatient care
Medical equipment that is considered durable rather than consumable
Some prescription drugs
Getting a second opinion
Mental health care
Part B comes with a monthly premium and an annual deductible as well. The premium is about $135, and the deductible is $185. You can have a Supplement plan cover that deductible for you, if you sign up for a Supplement plan in addition to your Original Medicare plan. That is not an expense that most Supplement plans will pay, however.
Medicare Part C
This medical insurance plan will cover you for a whole lot of medical expenses, encompassing all of Original Medicare (parts A and B) as well as any emergency care and urgently needed care not already covered by those parts of Medicare. Medicare Part C is also known by the name Medicare Advantage, and it will come with a monthly premium and an annual deductible.
This is a privately sold plan, meaning that it comes from private insurance companies rather than from Medicare. That means that the prices will be whatever the insurance companies set for the plans, but in general, you will pay about $40 per month for the premium. However, you can find some that come with free premiums. The deductible tends to be much more and can be as high as $4,000 in extreme cases, but it is generally closer to a couple hundred dollars.
The Medicare cost for 2020 for Advantage plans will increase more than it will for Medicare parts A and B, since these plans are sold by competing insurance companies. You should use our site to compare prices on Part C to ensure you get the best deal. There is no need to do that with Original Medicare or parts A or B of Medicare, since those come with standard rates that are set by Medicare. Comparing the cost of Medicare Part C plans, though, is essential if you are going to get a good deal and not be taken advantage of. Be sure to check the prices each year, once you have one of these plans, to see if there is a better deal out there that you might be missing.
Medicare Part D
The final part of Medicare we want to examine the cost of is Part D. This drug coverage plan can take care of prescription drug costs for you all year long, once you sign up for it. You can get this plan through a private insurer as an individual plan or packaged as part of a larger Medicare Part C plan. The coverage would be the same either way, so long as it is sold by the same insurance company.
Part D covers both generic and name brand drugs, though it offers a lot more coverage for the less expensive generic drugs, covering them for the majority of their costs. Higher end, name brand drugs are not covered as much.
Medicare Part D comes in a few different versions, and what kind of coverage you get will depend on which insurance company you buy your plan from. They each have their own version of this plan, but they all offer the same setup for coverage, which would be tiered coverage. This means that some drugs will be covered completely while others will just be covered partially. Be sure to look closely at which drugs are covered and how they are covered before you sign up.
Part D plans will cost, on average across the United States, about $33 per month. They can cost significantly less, though, if you get them packaged with a Medicare Part C plan, so be sure to consider that option as well.
The costs for all parts of Medicare will change periodically, and you can use our site to see what those prices are and to ensure you are getting the lowest Medicare costs for 2020. We want you to get a plan that you can afford and that covers you well, and the tools on our site allow you to do that in a way that is convenient it and easy for you, so please take advantage of the resources we provide for you here.