Medicare premiums 2020
It is important to understand what the Medicare premiums 2020 are going to be. The Medicare part B standard premium for 2019 is $135.50 a month. For 2020 the standard premium is going up to $144.60 a month. This is the premium for those that make under the income threshold for standard B premiums. The amounts are higher for those making higher incomes.
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The default Medicare Part B premium in 2020 will be $144.60. A majority of people on Medicare part B will pay the standard premium. If you modified adjusted gross income (MAGI) on your tax return for 2018 is over a certain level , you’ll pay an additional monthly amount called the Income Related Monthly Adjustment Amount (IRMAA).
|If your yearly income in 2018 (for what you pay in 2020) was||You pay each month (in 2020)|
|File individual tax return||File joint tax return||File married & separate tax return|
|$87,000 or less||$174,000 or less||$87,000 or less||$144.60|
|above $87,000 up to $109,000||above $174,000 up to $218,000||Not applicable||$202.40|
|above $109,000 up to $136,000||above $218,000 up to $272,000||Not applicable||$289.20|
|above $136,000 up to $163,000||above $272,000 up to $326,000||Not applicable||$376.00|
|above $163,000 and less than $500,000||above $326,000 and less than $750,000||above $87,000 and less than $413,000||$462.70|
|$500,000 or above||$750,000 and above||$413,000 and above||$491.60|
Part B deductible & coinsurance
Part B of Medicare has a deductible. This is the amount that part B will not cover each year. For 2019 the deductible is $185. It is increasing to $198 in 2020.
You have the right to appeal IRMAA to see if you can get a reduction in the adjustment. The valid reasons to file an appeal are listed below.
Tax return based appeal
- You filed an amended tax return that is being used to determine the IRMAA
- There was an error in the tax return
- You have a more recent return that shows a lower income amount
- You had a major life-changing event which has lowered your income
Life changing event appeal
- Spouse dies
- You get married
- A divorce or annulment
- Work hours have been reduced
- Stoppage at work
- Loss of income from a property that produced income
- Reduction or loss of pension income