Plan Ahead: Medicare Costs for 2020

Empyrion Wealth Management Medicare 2020

It’s vitally important for thriving retirees to stay abreast of changes affecting the cost of healthcare, especially given the annual adjustments in costs related to Medicare coverage.

Recently the Centers for Medicare and Medicaid Services (CMS) announced the 2020 cost schedule for Medicare Part B, the plan that covers costs for outpatient services such as doctor visits, preventative care, and more. Medicare Part A, which covers hospitalization costs, is provided to most seniors at no cost, provided they are 65 years of age or older, that they or their spouse have paid Medicare taxes for at least 10 years, and they are receiving or are eligible to receive Social Security benefits.  

Premiums for Medicare Part B are determined on a sliding scale according to your modified adjusted gross income (MAGI) as reported on your federal income tax return.

Here’s the breakdown for 2020:


Individual MAGI  Married filing jointly MAGI  Part B premium per month 
$87,000 or less  $174,000 or less  $144.60 
$87,001–109,000  $174,001–218,000  $202.40 
$109,001–136,000  $218,001–272,000  $289.20 
$136,001–163,000  $272,001–326,000  $376.00 
$163,001–499,999  $326,001–749,999  $462.70 
$500,000 +  $750,000 +  $491.60 


For those required to pay premiums for Part A, the monthly cost for 2020 could be as much as $458. But even if you qualify to receive Part A coverage at no cost, you’ll still have deductibles and other out-of-pocket costs that must be met if you are hospitalized. For example: 

  • $1,408 per benefit period for inpatient hospitalization;
  • $352 per day Part A coinsurance for days 61–90;
  • $704 per “lifetime reserve day” after day 90 (up to lifetime maximum of 60 days); 
  • $198 Part B annual deductible; 
  • and $176 per day skilled nursing coinsurance for days 21–100 (each benefit period).

If all these different amounts and calendar periods seem confusing to you, you’re not alone! Fortunately, there are a number of free online resources that can help you wrap your mind around your Medicare choices and the various costs involved. is a site maintained by the federal Centers for Medicare and Medicaid Services; this is a good place to start if you want to get a better understanding of the basics. also provides easy-to-use guidance for enrolling and getting the most from your Medicare coverage.

And of course, I’m always happy to discuss your particular situation and to provide professional resources and contacts to help you find your way through the “alphabet soup” of services, agencies, and organizations. The main thing is to make sure you have the information you need to plan ahead, for 2020 and beyond. 

Stay Diversified, Stay YOUR Course! 

Empyrion Wealth Management (“Empyrion”) is an investment advisor registered with the U.S. Securities and Exchange Commission under the Investment Advisers Act of 1940. Information pertaining to Empyrion’s advisory operations, services and fees is set forth in Empyrion’s current Form ADV Part 2A brochure, copies of which are available upon request at no cost or at The views expressed by the author are the author’s alone and do not necessarily represent the views of Empyrion. The information contained in any third-party resource cited herein is not owned or controlled by Empyrion, and Empyrion does not guarantee the accuracy or reliability of any information that may be found in such resources. Links to any third-party resource are provided as a courtesy for reference only and are not intended to be, and do not act as, an endorsement by Empyrion of the third party or any of its content. The standard information provided in this blog is for general purposes only and should not be construed as, or used as a substitute for, financial, investment or other professional advice. If you have questions regarding your financial situation, you should consult your financial planner or investment advisor.

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