Medicare Part B premiums and deductibles for outpatient care will increase in 2020.
The Centers for Medicare and Medicaid Services announced the new 2020 rates Friday. For about 70% of Medicare beneficiaries, the premiums will rise nearly 7% to $144.60 a month, up from $135.50 in 2019.
The $9.10 monthly increase follows a smaller $1.50 rise this year. Upper-income retirees pay higher premiums and those rates also are going up.
The annual deductible for Part B coverage, which covers doctor visits and outpatient care, also will go up by 7% to $198 in 2020, an increase of $13 from the annual deductible of $185 in 2019.
The announcement comes nearly a month after the Social Security Administration set a modest 1.6% cost-of-living adjustment to benefits in 2020, which works out to approximately $24 a month for the average retired worker.
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“People who are really counting on that Social Security (raise) will lose some of that to this Medicare increase,” said Fred Riccardi, president of the Medicare Rights Center, a group that advocates on health care issues.
“For people who live with little to no savings, any increase in Medicare premiums or drug costs is going to be a struggle.”
For 2019, Social Security recipients – which include retirees, the disabled and young survivors of deceased retirees – received a 2.8% cost-of-living adjustment, or an average $40.90 extra each month, the most since 2012.
The government typically deducts Medicare Part B premiums from a beneficiary’s Social Security check.
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