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The Basics of Medicare Changes in 2020

The Basics of Medicare Changes in 2020

February 27, 2020

From increasing deductibles and premiums, to new plans and plans that are no longer available, there are many Medicare changes in 2020. Most people are familiar with Medicare Parts A, B, and D. Part A covers hospital stays, skilled nursing facilities, hospice care and/or home health care. Part B is medical insurance for doctor visits, and Part D is for prescription drug coverage.  Whether you already have a plan or you’ve yet to sign up, you need to know what’s new for this year.

According to CNBC, 61 million people in the United States benefit from Medicare, with the majority being over 65. Change can be a bit intimidating, especially when it involves so many people on a subject that is critical. With that in mind, we’ve compiled some of the basics you need to know.

Some of the Changes for Medicare in 2020:

Medicare Part A: For most Americans, Part A is free because of their (or their spouses’) work history. For those who pay for Part A, the cost is now $252 per month, up from $240 per month in 2019. Part A deductible is now $1,408 versus $1,364 in 2019, and coinsurance costs have increased, as well.

Medicare Part B:Premiums for Part B have increased from $135.50 per month in 2019 to $144.60 per month. Deductibles in 2020 are now $198 versus $185 in 2019.

Medicare Part D: Medicare sets limits on your deductible for prescription drugs. Your deductible limit for 2020 is $435, up from $415 last year. Check with your provider regarding this year’s copayments and coinsurance costs. 

What Else is New with Medicare?

Medigap (Medicare Supplement) Plans are sold by private companies and can help you pay expenses not covered by regular Medicare, such as copayments, coinsurance, and deductibles.  Effective January 2, 2020, Medigap Plans will no longer sell Plans C, F, and the High-Deductible F to new Medicare enrollees. Who’s considered a “new” enrollee? Anyone who turns 65 after 12/31/2019.

However, anyone who’s already enrolled in Plans C and F can keep their plans. And, if your Plan F prices are increasing and you want to compare rates with other companies to get the best deal, you can! You can keep your Plan F, but you don’t have to stay with the same company.

Also new in 2020 is Medigap High-Deductible Plan G. With this plan, Medicare covers its part of the expense, you’re responsible for your out-of-pocket expenses, until the deductible of $2,340 is met. After that, Medigap covers the balance of qualified expenses approved by Medicare. Since there is a chance for larger out-of-pocket expenses with this plan, it usually works better for people who don’t have significant medical problems and have the money to pay the high deductible.

Where to Start

Before you get started, compare all of the available Medigap Plans.  Just remember, if you already have a plan that you’re happy with, you can keep it – even plans that are no longer available to new enrollees, such as Plan C. No need to change anything if you don’t want to.

If you’re new to Medicare, you may be overwhelmed. To see what plans you qualify for, check your eligibility date on your Medicare Part A card. has the latest information available on Medicare plans and supplemental plans. Knowledge is power! Make sure you’re in the know to start the new year off right!


This article was written for informational purposes only. Check with the appropriate health care provider to determine your full Medicare benefits and eligibility.