Each year changes occur with Medicare in New Hampshire and across the country. Although some changes make a minimal impact, others may affect you in significant ways. Here is a look at the changes initiated for 2020.
Part A Premiums and Deductibles
Although a high percentage of Medicare beneficiaries are not enrolled in Part A, it’s good to know the changes in place. The prior year allowed individuals to obtain coverage at a monthly rate of $240; however, in 2020, you can expect to pay $252.00 per month. If you fall into the category of individuals that are an exception to Part A, your monthly premium may cost as much as $458.00.
Similarly, deductibles have also increased. Below is a look at a cost comparison between 2019 and 2020.
| 2019 | 2020 | |
| Inpatient hospital | $1,364.00 | $1,408.00 |
| Daily coinsurance for 61st – 90th day | $341.00 | $352.00 |
| Skilled Nursing Facilities | $170.50 | $176.00 |
Part B Premiums and Deductibles
In 2019, individuals receiving Medicare were typically paying a standard premium of $135.50. However, due to recent changes, this premium has increased to $144.60. Although this jump is significant, the out of pocket cost will depend on your claimed yearly income. Below is an overview for individuals who file both single and jointly on taxes.
| INDIVIDUAL FILING | MARRIED, FILING JOINTLY | ADJUSTMENT | NEW MONTHLY PREMIUM |
| Up to $87,000 | Up to $174,000 | $0.00 | $144.60 |
| $87,000.01 – 109,000 | $174,000.01 – 218,000 | $57.80 | $202.40 |
| $109,000.01 – 136,000 | $218,000.01 – 272,000 | $144.60 | $289.20 |
| $136,000.01 – 163,000 | $272,000.01 – 362,000 | $231.40 | $376.00 |
Along with the increase in Part B premiums, the deductible has also gone up to $198.00 from $185 in 2019. Be sure to consult with your trusted advisor as many plans and supplemental coverage options help to offset the out-of-pocket deductible expense.
Plans C and F
Medigap Plans C and F are longer being offered to newly eligible Medicare beneficiaries. People eligible before January 1, 2020 may keep these plan if they are already enrolled, or enroll at a later date. This change was initiated to discourage the overutilization of full-coverage costs by those enrolled with a combination of Medigap coverage and Part B plan.
Part D Plans
For stand-alone prescription drug plans or Medicare Part D, the maximum allowable deductible has increased from $415.00 to $435.00 in 2020. Although this change is minimal, the out-of-pocket threshold made a significant increase from $5,100.00 in 2019 to $6,350.00 in 2020.
The Affordable Care Act is still working on closing the hole with Medicare Part D. As of 2020, whether brand-name or generic, enrollees in a Part D plan will pay 25% of the cost after meeting the deductible until they reach the threshold mentioned. This is down from 37% in 2019.
For more information on New Hampshire Medicare, contact our team at Brownell Financial. Committed to providing all clients with superior service, we will help you understand and choose the Medicare coverage that is best for your needs. Contact us today at (603) 437-1992.