Every fall, there is a flurry of activity in the insurance world – and not just because of open enrollment. Producers also have to get up-to-date with the latest policy changes and information released from the federal government – from the ACA premiums to the Medicare Part A coinsurance amounts. Below are some of the key changes in Life and Health for Medicare in 2020.
2020: What’s New in Life & Health – Medicare
- The standard Part B premium increased to $144.60/month, and the Part B deductible increased to $198.
- Part A premiums increased. For individuals with 30+ (but less than 40) quarters of work history, the premium is $252/month. For individuals with fewer than 30 quarters of work history, the premium is $458/month.
- The Part A deductible increased to $1,408, and the Part A coinsurance is also higher ($352/day for 61-90th day for inpatient care, and $704/day for lifetime reserve days).
- Medigap Plans C and F are no longer available for purchase by newly-eligible Medicare beneficiaries.
- The Medicare Plan Finder tool was upgraded for the first time in a decade.
- The income brackets for high-income premium adjustments for Medicare Part B and D have been inflation-adjusted for the first time as of 2020. “High-income” starts at $87,000 for a single person, instead of $85,000.
- Medicare Advantage enrollment is expected to continue to increase.
- Medicare Part D donut hole no longer exists. A standard plan’s maximum deductible has increased to $435. Also, the threshold for entering the catastrophic coverage phase, where out-of-pocket spending decreases significantly, increased to $6,350.
Want more info about what’s new in life and health insurance this year – from ACA changes to updates to Social Security? Check out our course below!