by Kathy Brokaw
Medicare Changes in 2020 – How Much the Industry Has Shifted in Just One Year
The Medicare industry has grown exponentially over the last 10 years, but 2020 has brought in changes that many were expecting to span over the next 10 years. These Medicare changes aren’t just limited to a single city or state, but have changed country-wide for both, patients and doctors.
Here, we shall discuss the changes in Medicare just in 2020 – both, because of normal progression and as a response to COVID-19. Although there are many changes that you should know, we’ll only discuss those that are here to stay.
Medicare Advantage Enrollment Has Seen an Uptick
2020 saw over 36% of Medicare beneficiaries being enrolled in a Medicare Advantage plan. This reflects about 24.1 million people (out of 67.7 million) who are enrolled. Although this number has been rising steadily over the past decade, 2020 saw around 2.1 million new beneficiaries, slightly more than the last year. This figure is expected to rise up to 51% by 2030.
Changes in Part B Premiums
Medicare Part B premiums have increased to $144.6 per month from $135.5 per month. The cost of living adjustment (COLA) increased to 1.6% in 2020 as well, effectively increasing the average benefit per retirees by $24 per month.
This covers the ~$9 increase in Part B premiums and is therefore applicable to all enrollees. The deductible, on the other hand, increased to $198 in 2020 from $185 in 2019.
Changes in Part A Premiums
Along with the increase in Part B premiums, Part A that covers hospitalization costs, has also increased in 2020. This can be directly attributed to the risk of being hospitalized also increasing because of the pandemic. Although most enrollees don’t pay Part A premiums, it might be applicable on you if you (or your spouse) don’t have 40 quarters history.
Because of this, almost 1% of Part A enrollees have to pay these premiums. Part A premiums have increased to $252 per month, which is $12 higher than 2019 but lower than in 2010. The Part A premium for people with 30-40 quarters of work history is $252 per month, while people with less than 30 work history quarters have to pay $458 per month in 2020.
The deductible, on the other hand, has increased to $1,408 for 2020 against $1,364 in 2019.
Changes in Part C & D Premiums
The new premiums for enrollees in Medicare Part C stand at $23 per month in 2020, while that of Part D is $36 per month. These mark an increase from the premiums in 2019, but looking at the average premium per person and comparing it to that of 2007, these premiums are much lower.
In 2019, more than 22 million were enrolled in Medicare Advantage plans. As the first fact shows, Medicare plans have seen a steady growth over the years – especially in 2020. If you have existing Medicare coverage, you don’t have much to worry about. If you don’t have it, there is no reason to worry; you have resources too.
If you’re looking for experts for advice on what plan is right for you and how to handle the latest Medicare trends properly, we recommend you get in touch with one of our experts and enrich your lifestyle.