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Medicare premiums and deductibles for parts A and B will increase in 2020, the Centers for Medicare and Medicaid Services (CMS) announced Friday. Standard monthly premiums for Part B will cost $9.10 more, rising to $144.60 in 2020, up from $135.50 in 2019.
Because premiums are based on income, Part B beneficiaries with annual incomes greater than $87,000 will pay more ($202.40 for individuals with incomes between $87,000 and $109,000, for instance). Part B covers doctor visits and other outpatient services, such as lab tests and diagnostic screenings. Annual Part B deductibles will rise $13 next year to $198, up from this year's $185, according to CMS.
The Part B increases for 2020 are larger than the slight ones levied on beneficiaries for this year. Federal officials attributed the increases to rising spending on drugs administered in doctors’ offices. “These higher costs have a ripple effect and result in higher Part B premiums and deductibles,” CMS said Friday in announcing the 2020 out-of-pocket costs.
Part A covers hospitalization and some nursing home and home health care services. The inpatient deductible that patients will pay for each hospital admission will increase by $44 in 2020 to $1,408, up from $1,364 this year. Almost all Medicare beneficiaries (99 percent) pay no Part A premium.
Open enrollment for Medicare began Oct. 15 and continues through Dec. 7. This is the one period during the year when beneficiaries can take stock of their coverage and make the choices that will best meet their health care needs.