Medicare beneficiaries will see a 7 percent increase in monthly premiums and annual deductibles for 2020 Part B coverage, which takes care of physician services, outpatient hospital services, explicit home health services and durable medical equipment.
The Centers for Medicare and Medicaid Services (CMS) announces the rates for Medicare Part A and Part B programs on Friday, attributing the increase to a rise in spending on physician-administered drugs.
According to CMS, “These higher costs have a ripple effect and result in higher Part B premiums and deductible.”
Standard monthly premiums for Medicare Part B enrollees were $135.50 in 2019 and will go up to $144.60, costing beneficiaries an extra $109 for the year along with a $13 annual deductible increase.
The rates are based on individually filing beneficiaries with annual incomes equal to or less than $87,000.
To view premiums and deductibles for all income levels, visit the CMS site.
The agency also announced slight increases in Medicare Part A premiums and deductibles, which covers inpatient hospital, skilled nursing facilities and certain home health care services. The inpatient hospital deductible beneficiaries pay when admitted is rising approximately 3 percent from $1,364 annually to $1,408.
Medicare 2020 open enrollment period opened Oct. 15 and ends Dec. 7.