Center for Medicare Advocacy

Advancing Access to Medicare and Healthcare

Medicare Cost-Sharing Rates (Premiums & Deductibles for 2020)

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Medicare Cost-Sharing (2020)

Part A Monthly Premium (For those not automatically enrolled)

  • 2020: 0-29 qualifying quarters of employment: $458
  • 2020: 30-39 quarters: $252

Inpatient Hospital

  • 2020: Deductible, Per Spell of Illness: $1,408
  • 2020: Co-pay, Days 1 – 60: $0
  • 2020: Co-pay, Days 61 – 90: $352/day
  • 2020: Co-pay, Lifetime Reserve Days: $704/day

Skilled Nursing Facility

  • 2020: Co-pay, Days 1 – 20: $0
  • 2020: Co-pay, Days 21 – 100: $176

Standard Monthly Part B Premium

  • 2020: $144.60

Part B Deductible

  • 2020: $198

2020 Parts B and D Income-Related Premiums

Beneficiaries who file an individual tax return with income: Beneficiaries who file a joint tax return with income: Beneficiaries who are married, but file a separate tax return with income: 2020
Total monthly Part B premium amount 		 2020
Part D income-related monthly adjusted amount paid to Medicare (in addition to plan premiums)
Less than or equal to $85,000 Less than or equal to $170,000 Less than or equal to $87,000 $144.60 $0
Greater than $85,000 and less than or equal to $107,000 Greater than $170,000 and less than or equal to $214,000   $202.40 $12.20
Greater than $107,000 and less than or equal to $133,500 Greater than $214,000 and less than or equal to $267,000   $289.20 $31.50
Greater than $133,500 and less than or equal to $160,000 Greater than $267,000 and less than or equal to $320,000   $376.00 $50.70
Greater than $160,000 and less than $500,000 Greater than $320,000 and less than $750,000 Greater than $87,000 and less than $415,000 $462.70 $70.00
Greater than or equal to $500,000 Greater than or equal to $750,000 Greater than or equal to $413,000 $491.60 $76.40

Note: Legislation passed in 2015 made changes to the income thresholds for 2018 and 2019 (the upper 3 brackets were lowered, meaning higher charges apply to people earning less income compared to previous years).  In 2020 and thereafter, the thresholds are adjusted annually for inflation. See Section 402 of the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA; Public Law 114-10).

The following article by Kaiser Health News describes both the impact of this change in the income thresholds and the effect of the hold harmless provision on Part B premiums in 2018, as discussed below (the bottom line – more people will be paying higher Part B premiums): “Despite Boost In Social Security, Rising Medicare Part B Costs Leave Seniors In Bind” by Judith Graham, Kaiser Health News (October 5, 2017).

Part B Premium and the Hold Harmless Provision

The standard monthly premium for Medicare Part B enrollees will be $134 for 2018, the same amount as in 2017. However, some people with Part B in 2018 will partially protected from premium increases by a statutory “hold harmless” provision, which prevents Medicare beneficiaries from having their monthly Social Security payment decrease as a result of an increase in Part B premiums. See 42 U.S.C. §1395r(f).  After several years of no or very small increases, Social Security benefits will increase by 2.0 percent in 2018 due to the Cost of Living Adjustment. Therefore, some beneficiaries who were held harmless against Part B premiums increases in prior years will have a premium increase in 2018.

Part B enrollees who were held harmless in 2016 and 2017 will see an increase in the monthly Part B premium from the roughly $109, on average, they paid in 2017.  The amount of this increase depends on how much an individual receives in Social Security benefits.  An estimated 42 percent of all Part B enrollees are subject to the hold harmless provision in 2018 but will pay the full monthly premium of $134, because the increase in their Social Security benefit will be greater than or equal to an increase in their Part B premiums up to the full 2018 amount. About 28 percent of all Part B enrollees are subject to the hold harmless provision in 2018 and will pay less than the full monthly premium of $134, because the increase in their Social Security benefit will not be large enough to cover the full Part B premium increase.

Approximately 30 percent of all Part B enrollees who are not subject to the “hold harmless” provision will pay the full premium of $134 per month in 2018.  Part B enrollees not subject to the “hold harmless” provision include beneficiaries who do not receive Social Security benefits, those who enroll in Part B for the first time in 2018, those who are directly billed for their Part B premium, those who are dually eligible for Medicaid and have their premium paid by state Medicaid agencies, and those who pay an income-related premium.