Insurance & Risk Management

2020 Medicare Part B and D Premiums

2020 Medicare Part B and D Premiums

Insurance & Risk Management

If you are enrolled in Medicare Part B, you pay a premium for the insurance each month. The premium is automatically deducted from your benefit payment if you are receiving benefits from Social Security, Railroad Retirement Board, or Office of Personnel Management. Depending on your modified adjusted gross income (MAGI), you may pay an Income Related Monthly Adjustment Amount (IRMAA). Medicare uses the modified adjusted gross income from two years ago to determine your current IRMAA. 2018’s taxes will determine your Medicare premiums for 2020.

The standard Part B premium for 2020 will be $144.60 monthly. Below is a table that shows adjustments to the monthly Part B premium.

If your filing status and MAGI in 2018 was
File individual tax return File joint tax return File married & separate tax return You pay each month (in 2020)
$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

 

In addition to Part B premiums, your Part D premium is also affected by your adjusted gross income. The chart below shows your estimated prescription drug plan monthly premium based on your income as reported on your IRS tax return.

If your filing status and MAGI in 2018 was
File individual tax return File joint tax return File married & separate tax return You pay each month (in 2020)
$87,000 or less $174,000 or less $87,000 or less your plan premium
above $87,000 up to $109,000 above $174,000 up to $218,000 not applicable $12.20 + your plan premium
above $109,000 up to $136,000 above $218,000 up to $272,000 not applicable $31.50 + your plan premium
above $136,000 up to $163,000 above $272,000 up to $326,000 not applicable $50.70 + your plan premium
above $163,000 and less than $500,000 above $326,000 and less than $750,000 above $87,000 and less than $413,000 $70.00 + your plan premium
$500,000 or above $750,000 and above $413,000 and above $76.40 + your plan premium

 

As a part of Schultz Financial Group’s year-end tax planning process, we review our client’s tax returns and are cognizant of how small adjustments in adjusted gross income can have a large impact on annual Medicare premiums.

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