With the Annual Enrollment Period (AEP) in full swing, the Centers for Medicare & Medicaid Services (CMS) announced the 2019 costs for Medicare Parts A and B, commonly known as Original Medicare. For many, this announcement will come as a relief, since there’s only a small increase to premiums. For particularly high earners, however, the rise will outpace the increase in Social Security payments.
Medicare Part A
Luckily, if you have Medicare Part A, there’s a very good chance that you receive its benefits premium-free. If you paid 40 quarters-worth of Medicare taxes, you’re in this camp. In fact, CMS reports that 99 percent of Part A beneficiaries receive Part A premium-free. If you do not qualify for premium-free Medicare Part A, the full monthly premium is $437, a $15 increase over 2018. If you have paid 30 quarters or more of Medicare tax or are married to someone who’s paid 30 or more quarters, you’ll pay a monthly premium of $240, an increase of $8 from 2018.
For 2019, the Part A inpatient hospital deductible has risen $24 to $1,364. This deductible covers your costs for the first 60 days of Medicare-covered inpatient care for a benefit period. After that, you’ll fall into a daily coinsurance for days 61 to 90, which rose from $335 a day to $341. After that, you’ll dip into your lifetime reserve days, which have a daily coinsurance of $682 in 2019. If you require a skilled nursing facility, days 21 to 100 are covered by a $170.50 daily coinsurance, a small growth of $3.
2019 Part A Cost Breakdown
| Type of Cost | 2018 | 2019 | % |
|---|---|---|---|
| Full Part A Premium | $422 | $437 | 3.55% |
| Partial Part A Premium | $232 | $240 | 3.44% |
| Inpatient Hospital Deductible | $1,340 | $1,364 | 1.79% |
| Daily Coinsurance for Days 61 to 90 | $335 | $341 | 1.79% |
| Daily Coinsurance for Lifetime Reserve Days | $670 | $682 | 1.79% |
| Skilled Nursing Facility Coinsurance | $167.50 | $170.50 | 1.79% |
Medicare Part B
If you’re enrolled in Medicare Part B, you can generally expect a moderate increase in costs in 2019. In fact, the standard monthly premium has only increased $1.50, from $134 in 2018 to $135.50, unless you’re considered held harmless. Many people have their monthly premiums deducted directly from their Social Security checks and your premium increase for Part B cannot be greater than the Social Security Cost-of-Living Adjustment (COLA). If that would be the case, you’re usually held harmless, and you pay a smaller premium for the year.
This isn’t the only adjustment to your Part B premium, however. Your annual household income plays a part, too. Income-related monthly adjustment amounts (IRMAA) affect only around 5 percent of Part B enrollees, but if you make more than $85,000 individually or $170,000 together, you may see larger premiums. For each income level and their corresponding Part B premium, please refer to the table below.
Finally, Part B enrollees will also see a moderate, $2 increase on their annual deductible. The 2019 Part B deductible is $185.
2019 Part B Cost Breakdown
| Type of Cost | 2018 | 2019 | % |
|---|---|---|---|
| Part B Premium | $134 | $135.50 | 1.12% |
| Part B Deductible | $183 | $185 | 1.09% |
| File Individual Tax Return | File Joint Tax Return | Monthly Adjustment | 2019 Part B Monthly Premium |
|---|---|---|---|
| $85,000 or Less | $170,000 or Less | $0.00 | $135.50 |
| $85,001 to $107,000 | $170,001 to $214,000 | $54.10 | $189.60 |
| $107,001 to $133,500 | $214,001 to $267,000 | $135.40 | $270.90 |
| $133,500 to $160,000 | $267,001 to $320,000 | $216.70 | $352.20 |
| $160,001 to $500,000 | $320,001 to $750,000 | $297.90 | $433.40 |
| $500,001 or More | $750,001 or More | $325.00 | $460.50 |
| File Separate Tax Return from Spouse | Monthly Adjustment | 2019 Part B Monthly Premium |
|---|---|---|
| $85,000 or Less | $0.00 | $135.50 |
| $85,001 to $415,000 | $297.90 | $433.40 |
| $415,001 or More | $325.00 | $460.50 |
How About Medicare Parts C and D?
While the costs for both Medicare Advantage and Part D are set by individual insurers, CMS provides the average costs each year before AEP. Luckily, 2019 is anticipated to be a good year for beneficiaries of both plans. The average Medicare Advantage plan monthly premium for 2019 will drop six percent, to $28. This is the lowest average monthly premium in three years.
As for Medicare Part D, the average monthly premium for a prescription drug plan has also dropped for the second year in a row. In 2019, the average Part D monthly premium is $32.50, which fell $1.09 from 2018.
● ● ●
Now is the perfect time to explore what Medicare insurance plans are available to you.
All numbers drawn directly from the CMS 2019 Medicare Parts A & B Premiums and Deductibles Fact Sheet. Should you have any questions, please refer back to the fact sheet. For reference, prices and costs for 2018 are available here.
