Medicare rules are always changing. For this reason, keeping up with them can be a challenge for many people. Even healthcare professionals have questions about Medicare changes each year. The good news is that you don't need to worry because this article will tell you what you need to know about Medicare changes in 2020. After reading it, you can use that knowledge to be sure and get the most for your healthcare dollars.
Key Takeaways:
There are some new rules for Medicare that took effect on January 1, 2020 that you should be aware of.
Some deductibles, coinsurance, and premiums increased in 2020.
There are new limitations regarding Medicare Supplement plans in 2020.
Medicare and the current administration are working to help lower costs for beneficiaries.
Before discussing Medicare changes for 2020, the following information covers the basics of Medicare.
What Is Medicare?
Medicare is the federal government's healthcare insurance program. It provides coverage for specific medical treatments and therapies for U.S. citizens who meet the following criteria:
Are 65 years of age or older
Have certain disabilities
Suffer from end-stage renal disease (ESRD), such as those with permanent kidney failure that requires dialysis or a transplant
Why You Need To Know About Medicare Changes In 2020
Staying informed about the latest Medicare changes is important. By staying current on Medicare rules, you can ensure that your medical treatments are covered and that you are getting the most for your money.
If you have a Medicare Advantage plan, the rules can change each year. This means that things like out-of-pocket costs can vary, as well as the specific guidelines that determine how you can obtain needed healthcare services.
For example, you may be required to get a referral to see a specialist. Or, you may only be allowed to use certain caregivers, facilities, or suppliers that your Medicare plan authorizes.
For these and other reasons, it's important to know what Medicare changes have taken place each year and carefully review what's covered before you sign up for any plan.
What Are Some of the Important Medicare Changes In 2020?
Deductibles, premiums, and copayment rates are adjusted each year, and 2020 is no exception. These adjustments are made according to the Social Security Act.
Costs for Medicare are currently higher than they were in 2019. The information below reveals just how much higher.
Medicare Part B Premiums and Deductibles:
In 2020, the monthly premium for Medicare Part B increased $9.10 to $144.60.
The annual deductible for Part B increased from $13.00 to $198.00.
These increases are due, for the most part, to the increase in spending on physician-administered medications. When these costs go up, so do the Medicare Part B deductibles and premiums.
Medicare Part A Premiums and Deductibles:
The Medicare Part A inpatient hospital deductible in 2020 increased to $1,408. This covers the share of costs for the first 60 days of Medicare-covered inpatient hospital care during a benefit period.
In 2020, coinsurance is $352 per day for days 61-90 of hospitalization. This is an increase from 2019's rate of $341. It's now $704 per day for lifetime reserve days, which is up from $682 in 2019. What are lifetime reserve days? If your hospital stay goes beyond 90 days, Medicare gives you an extra 60 days for hospitalizations that you can use at any time during your life.
For coverage in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care services in a benefit period is $176 in 2020. This is up from $170.50 in 2019.
People who had at least 30 quarters of coverage or were married to someone with this coverage can purchase Medicare Part A at a reduced monthly premium rate. The cost in 2020 is $242, which is a $12 per month increase from 2019.
Certain uninsured individuals who have less than 30 quarters of coverage, and some individuals with disabilities who have exhausted other entitlements, must pay the full monthly premium amount. In 2020, this is $458 a month, which is a $21 increase from 2019.
Other Important Medicare Changes In 2020
An important new rule took effect on January 1, 2020. Medicare insurance Supplement plans that are sold after January 1, 2020 can no longer cover Medicare Part B deductibles (your health insurance deductibles).
A deductible is an amount you must pay for healthcare services before your insurance plan begins to pay for services. For example, with a $2,000 deductible, you will have to pay the first $2,000 of covered medical services. Once you pay this amount, you typically only pay a copayment or coinsurance for the remainder of covered services.
In 2020, Medigap Supplement plans (C and F) are no longer available to people who are new to Medicare. The good news is that if you already had either Plan C or Plan F before January 1, 2020, you can keep them.
Also, if you were eligible for Medicare before January 1, 2020, but you haven't enrolled yet, you still may be able to buy one of these plans.
More Changes Are Coming
At present, the law currently requires that the Centers for Medicare and Medicaid Services (CMS) pay the average price for a prescription medication, and that it pays doctors a percentage of the drug's sale price as well.
This unfortunately can prompt pharmaceutical companies to set higher prices and incentivize doctors to prescribe more costly medications.
The good news is that the federal government is trying to change the law and lower Medicare Part B prescription drug prices for eligible beneficiaries.
CMS Offers Fee-for-Service Medicare Information to Help You Understand What You're Paying For
CMS is working to reduce costs for Medicare Advantage premiums by driving the competition. They estimate that for the year 2020, average Medicare Advantage premiums are expected to decrease by 23 percent from what they were in 2018. This will mark the lowest cost in the last 13 years. It's resulted in an increase in plan benefits, choices, and enrollment in Medicare for 2020. This is good news for all Medicare beneficiaries.
In an effort to help those eligible for Medicare make more informed decisions about their coverage options, the eMedicare Initiative (a streamlined, online user experience), along with the Centers for Medicare and Medicare Services, releases premiums and cost-sharing information.
This information includes comprehensive details about 2020 Medicare Advantage and Part D plans. The fee-for-service information will be particularly helpful for Medicare beneficiaries wanting to learn more about their options for receiving benefits.
As you can see, it's always best to stay informed about Medicare changes in 2020 and in the future. If you do, you have peace of mind knowing that you are getting the most for your healthcare dollars spent.
