With open enrollment rules changing each year, it can be hard to keep up with Medicare. Luckily, we’ve got a guide to the most important changes coming for people enrolling this year. Here is our guide to understanding Medicare changes 2020:
Medicare Part A
The standard Medicare Part A premium will rise to $458/month. However, some people qualify for premium-free coverage, so be sure to research your individual situation.
Medicare Part B
The Medicare Part B premium will rise to $144.58 and the Medicare Part B deductible will rise to $198 as of 2020. As of 2020, any plan that does not require payment of the Medicare Part B deductible will no longer be allowed to be sold, which is why Medicare Supplement plans C and F are now discontinued.
Supplement Plan C and F
The biggest Medicare changes of 2020 were to new enrollees. Medicare Supplement Plan C and F will no longer be available for people enrolling in Medicare in 2020. That means people who were enrolled before 2020 will in most cases be allowed to keep coverage, but for people newly turning 65 and enrolling Medicare, the Part C plan won’t be available.
This is because all plans that don’t have a component of paying the Medicare Part B deductible are no longer allowed. For this reason supplement plans C and F are being discontinued for new Medicare enrollees. These changes were created in 2015 legislation to save money on Medicare overall.
Medicare Part D
Medicare Part D covers prescription medications. As far as Medicare changes in 2020, the secondary coverage for Medicare Part D—known as the “Medicare Part D donut hole”—continues to be more closed than it was in previous years.
This “donut hole” refers to the high cost for prescription drugs after the initial $4,020 worth of medication is reached. The former secondary coverage then requires you pay 37% of name brand drugs and 25% of generic drugs. However, the “donut hole” will be more closed as of 2020, meaning there will be a discount provided for these drugs in the secondary phase of coverage to make the program more affordable for most people.
People with Medicare Part D won’t be asked to pay more than 25% of the costs of prescription medication, which is the normal amount paid once the plan’s deductible is met.
Medicare Part G
There’s a new high-deductible Medicare Supplement plan being introduced in 2020. It’s called Medicare Part G, and it’s similar to the previous Medicare Part F plan, except it also covers the Medicare Part B deductible so it’s still legal as of the changes to 2015 law that requires this coverage.
The Medicare Part G high-deductible supplement plan has a deductible amount of $2,340 in 2020. After your deductible is paid, Medicare pays the rest, apart from your out-of-pockets costs which are generally 20% of total costs.
The Medicare Part G high-deductible plan will typically have a much lower premium than other plans because the deductible is so much higher. This makes it an ideal plan for someone who does not need medical care as often and isn’t worried about paying the cost of the deductible if needed.
Recap of the Biggest Changes
The biggest changes to Medicare in 2020 will be:
- Slightly higher premiums for Medicare Part A
- Slightly higher premiums and deductibles for Medicare Part B and the requirement that the Medicare Part B deductible be part of every supplement plan
- Discontinuation of supplement plans that don’t require payment of the Medicare Part B deductible—meaning Medicare Supplement plans C and F will no longer be options for people enrolling in Medicare in 2020
- The addition of a higher-deductible Medicare Supplement plan in the form of Medicare Plan G
- The closing of the Medicare Part D “donut hole” which will allow for a reduction in prescription medication costs for most people