Medicare Part B Premium 2020 (Video)
Get quick facts on the new amount and how this applies to your Medicare coverage.
What Is the Part B Premium and How Does It Work?
Learn about the Medicare Part B Premium in our helpful and straight to the point "Quick Facts" video, which you can watch here:
Understanding the Part B Premium for 2020
For 2020, the standard Part B premium is $144.60.
This standard Part B premium amount applies to all Medicare Part B enrollees whose annual individual income does not exceed $87,000 or $174,000 if married and filing jointly.
The 2020 standard Part B premium has increased by $9.10 from the standard monthly Part B premium for 2019, which was $135.50.
Medicare uses the modified adjusted gross income (MAGI) from your 2018 tax return to determine your 2020 Part B premium.
If your income, or joint income, exceeds the threshold amount set for the standard premium then you will pay a higher monthly Part B premium amount.
Part B Premium Amounts Based on Income
When we refer to the standard Part B premium amount, we are referring to the premium that applies to those whose income falls below the higher-income threshold.
For those that file taxes individually, this threshold amount is $87,000. If you are married and file taxes jointly, this threshold amount is $174,000.
So, if your income comes in above the higher-income threshold, your monthly Part B premium amount will be greater than the standard amount.
For example, if you are an individual whose 2018 modified adjusted gross income (MAGI) fell within the category of “Above $87,000 and up to $109,000” then your Part B premium for 2020 is $202.40, rather than the standard amount of $144.60.
If you would like to know what your own Part B premium amount is (based on your modified adjusted gross income amount from 2018) you can check it here.
What Does Medicare Part B Cover?
When you sign up for Medicare Part B, you receive coverage for both medically necessary services and preventive services.
This includes some of the more expensive services you might experience during a hospital stay, such as surgery, radiation, diagnostic imaging, chemotherapy, and dialysis, among others.
Part B covers preventive medical services like ambulance rides, doctor visits, screenings, and diagnostic tests. It also covers a number of preventive care measures such as flu shots, colonoscopies, and mammograms.
Medically Necessary Services:
Medically necessary services and supplies are those used for diagnosis and treatment of medical conditions.
These services and supplies must meet the accepted standards of medical practice. This includes the use of medical equipment like wheelchairs, hospital beds, and oxygen equipment.
Preventive services are those that prevent illness or detect it early enough for optimal treatment.
This includes diagnostic tests like MRIs, EKGs, CT scans, and X-rays. It also applies to covered screenings such as pap tests, HIV screening, glaucoma tests, hearing tests, diabetes screening, and colorectal cancer screenings.
If your healthcare provider accepts assignment, you often don’t have to pay anything for these preventive services.
Up Next: Part B Comprehensive Guide 2020