Medicare Deductibles

Medicare Deductibles

It’s a new year. Don’t forget deductibles.

Have you made your New Year’s resolutions? Have you already broken some of them? We all do it.

Here’s one resolution to make and keep. “I will be aware of all my Medicare deductions and not be surprised at the doctor’s or the pharmacy.”

Here are some deductions you might be subject to. Since Medicare programs start afresh each January 1, you will discover them this month, one way or another. Better to be prepared. IRS deductibles are usually good. Medicare deductibles not so much.

Definition: A deductible requires you to pay 100% of medical services before initial coverage begins. In Part D – coverage for approved prescriptions – it is Phase One. Phase Two is the initial coverage. Phase Two does not start until you have satisfied the requirements of Phase One.

Part A Medicare Deductibles

Medicare Part A has no annual deductible but there is a deductible for a hospital stay. This occurs for each stay, called a “hospital benefit period.” The period starts the day you are admitted and ends 60 days after being sent home. The deductible for each hospital benefit period in 2020 is $1,408.

Part B Medicare Deductibles

The annual deductible for Medicare Part B coverage is $198 in 2020. Note: This year, some of the income brackets for people who pay more for Part B have changed. Either Google Medicare or call me.
The standard monthly premium for Part B this year is $144.60. If you receive Social Security benefits, your premium will be a little less than the average.

Part C – Medicare Advantage Deductible

If you have a Medicare Advantage plan, you will have received notification of deductibles and other information for 2020. Amounts vary with the specific plan. Some have no deductibles for medical coverage but most have them for drug coverage.

Part D Medicare Deductibles

In a standalone Part D plan, you will have to pay 100% for meds up to $435, the 2020 out-of-pocket limit, before initial coverage begins. When initial coverage begins, you will be responsible for co-pays. The initial coverage period limit before reaching the doughnut hole is $4,020 this year.

After the holidays, you may be feeling a pinch in your pocketbook. If you are not ready for deductibles, it can be an unpleasant surprise.

As always, you can visit our Medicare resource center:

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