Medicare Supplement Plan Rates 2020
In addition to the confusion surrounding Medicare and the different Plans available, many people wonder how much Medicare and Medicare Supplement Plans cost each month. And the answer to that question can vary widely depending on which Plan you purchase and the income reported in your last filed tax return.
An overview of several different options is below:
If you are enrolled in Medicare, then you’re automatically enrolled in Medicare Part A. And the good news is that for most there isn’t a monthly premium associated with Medicare Part A. And although Part A pays for inpatient care, nursing home stays, and hospice or in-home health care it does have an annual deductible set at $1,408 for 2020.
In addition, if a hospital stay lasts longer than 60 days, Part A will require you to cover some of the daily costs. And the daily costs increase if the hospital stay lasts longer than 90 days with no out of pocket maximum. As a result of the uncertainty associated with the costs of an extended hospital stay, many Medicare patients purchase a Supplement Plan.
Medicare Part B is an optional plan and has a monthly fee associated with enrollment. It differs from Part A in that it covers doctor’s visits, x-rays, lab work, medical equipment, and any tests used to diagnose medical conditions. The monthly premium is based on the most recent tax data that Social Security gathers from the IRS.
To set your Medicare costs for 2020, Social Security will use the 2019 filing which details your 2018 earnings. If your income was less than or equal to $87,000 for an individual filer or $174,000 for a married couple filing jointly, then you will pay the 2020 standard rate of $144.60 per month. At higher income levels, premiums rise to a maximum of $491.60 per month if your income exceeded $500,000 for an individual filer or $750,000 for a married couple filing jointly.
To help limit Medicare out of pocket expenses associated with Plans A and B, there are up to ten Medicare Supplement Plans available.
These plans are provided by private insurance companies and offer different levels of coverage with different costs associated with each Plan. Some Plans will help cover copayments and coinsurance whereas others will go so far as to pay all of your medical expenses once you’ve paid a certain amount.
Understanding all of the options is a complicated and confusing process. Call us today and we’ll walk you through the different Medicare Supplement Plans available to you. We’ll review all of the options available to find a Plan that meets your needs and fits your budget.