Medicare 2019 Part A and Part B: Premium and Deductible Changes

Posted on Posted in Medicare A & B, Medicare supplement

On October 12, 2018, the Centers for Medicare & Medicaid Services (CMS) released the 2019 premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs.

Medicare Part A Deductible

Medicare Part A covers covers inpatient hospital, skilled nursing facility, and some home health care services. The annual inpatient hospital deductible that beneficiaries pay when admitted to the hospital will be $1,364 per benefit period in 2019, an increase of $24 from $1,340 in 2018. The Part A deductible covers beneficiaries’ share of costs for the first 60 days of Medicare-covered inpatient hospital care in a benefit period.

Medicare Part A Daily Coinsurance

2018 2019
Daily coinsurance for 61st-90th Day $335 $341
Daily coinsurance for lifetime reserve days $670 $682
Skilled Nursing Facility coinsurance after 20 days $167.50 $170.50

Medicare Part B Deductible

The annual deductible for all Medicare Part B beneficiaries will be $185, a $2.00 increase from the $183 in 2018. This affects Dan’s clients enrolled in Medicare Supplement Plan N and High Deductible F:
Q: Have you compared the maximum annual Out-of-Pocket co-pays of a High Deductible Plan F ($2300) to a regular Medicare Advantage Plan? Call Dan at 518-346-2115 to discuss the difference.


Medicare Part B Premiums

The standard monthly premium for Medicare Part B beneficiaries will be $135.50 for 2019, a $1.50 increase from the $134 standard amount for 2018.

  • About 2 million Medicare beneficiaries — 3.5 percent — will pay less than the $135.50 premium for next year due to the “hold harmless(i)” provision. That rule protects certain Social Security beneficiaries from paying more for their Part B premiums.
  • 5% of Medicare recipients will pay income-related surcharges. The graduated surcharges for high-income seniors kick in for singles with modified adjusted gross income of more than $85,000 and for couples with a MAGI of more than $170,000. An individual earning more than $85,000, but less than or equal to $107,000, will pay $189.60 in total a month for Part B premiums in 2019, including a $54.10 surcharge. That’s up $2.10 from 2018: $187.50 total in a month, including a $53.50 surcharge.

Did you know?

Many Medicare enrollees carry supplemental insurance to cover the Medicare Part A and Part B annual deductible and coinsurance amounts. In New York State, under certain conditions Medicare enrollees can shop and change their Medicare supplemental plan without regard to pre-existing conditions. Click here to read Dan’s earlier post to learn how and click here to request an individual consultation.

(i) The Medicare hold harmless provision is a legal statement prohibiting an increase to Medicare B premiums stating that an individual’s Part B premium cannot rise more than the previous year’s cost of living increase in Social Security benefits. Those individuals not receiving Social Security payments or who directly pay the Part B Premium are not protected.
Sources:
CMS: Center for Medicare and Medicaid Services
CNBC: If you are covered by Medicare, take note: Your premiums will increase slightly next year

Forbes: Medicare Part B Premiums Rise Modestly

Leave a Reply