CMS NEWS: 2019 Medicare Parts A & B Premiums and Deductibles Announced.
Summary of changes to Medicare Part A and Medicare Part B premiums and deductibles:
- Increase in SS Benefits. The 2019 Social Security benefits cost-of-living adjustment (COLA) will be 2.8 percent.
- Increase in Part B Premiums. The standard monthly premium for Medicare Part B enrollees will be $135.50 for 2019, an increase of $1.50 from $134 in 2018. An estimated 2 million Medicare beneficiaries (about 3.5%) will pay less than the full Part B standard monthly premium amount in 2019 due to the statutory hold harmless provision, which limits certain beneficiaries’ increase in their Part B premium to be no greater than the increase in their Social Security benefits.
- 2019 Part B Deductible. The annual deductible for all Medicare Part B beneficiaries is $185 in 2019, an increase of $2 from the annual deductible $183 in 2018.
- Higher Part B Premiums for High-Earners: People with higher incomes will pay more for their Medicare Part B coverage. Along with higher Part B premiums, the Part B Income-related monthly adjustment amount (IRMAA) will increase for individuals earning over $85,000 or couples earning over $170,000. To learn more, see our article: 2019 IRMAA: 5% decrease in Medicare Part D IRMAA for individual earning incomes between $85,000 - $500,000 and couples earning $170,000 - $750,000.
- Higher 2019 Medicare Part A Deductible. The 2019 Medicare Part A deductible will increase to $1,364 from the 2018 deductible of $1,340.
And, in More Detail ...
On October 12, 2018, the Centers for Medicare & Medicaid Services (CMS)
announced the 2019 premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs.
CMS announces 2019 Medicare Parts A & B premiums and deductibles
Today, the Centers for Medicare & Medicaid Services (CMS) announced
the 2019 premiums, deductibles, and coinsurance amounts for Medicare
Parts A and B.
"CMS is committed to empowering beneficiaries with the information they
need to make informed decisions about their healthcare," said CMS
Administrator Seema Verma. "In addition to the information we recently
released for Medicare Advantage, the program through which private plans
provide Medicare benefits, today we are releasing information for
fee-for-service Medicare, so enrollees understand their options for
receiving Medicare benefits."
As announced earlier this month, CMS launched the eMedicare Initiative
that aims to modernize the way beneficiaries get information about
Medicare and create new ways to help them make the best decisions for
themselves and their families. Ahead of Medicare Open Enrollment – which
begins on October 15, 2018 and ends December 7, 2018 – CMS is making
improvements the Medicare.gov website to help beneficiaries compare
options and decide if Original Medicare or Medicare Advantage is right
for them. Among the tools released as part of the eMedicare Initiative
is a stand-alone, mobile optimized out of pocket cost calculator that
will provide information on both overall costs and prescription drug
costs.
Medicare Part B Premiums/Deductibles
Medicare Part B covers physician services, outpatient hospital services,
certain home health services, durable medical equipment, and certain
other medical and health services not covered by Medicare Part A.
The standard monthly premium for Medicare Part B enrollees will be
$135.50 for 2019, a slight increase from $134 in 2018. An estimated 2
million Medicare beneficiaries (about 3.5 percent) will pay less than
the full Part B standard monthly premium amount in 2019 due to the
statutory hold harmless provision, which limits certain beneficiaries'
increase in their Part B premium to be no greater than the increase in
their Social Security benefits.
CMS also announced that the annual deductible for Medicare Part B beneficiaries is $185 in 2019, an increase from $183 in 2018.
Medicare Part A Premiums/Deductibles
Medicare Part A covers inpatient hospital, skilled nursing facility, and
some home health care services. About 99 percent of Medicare
beneficiaries do not have a Part A premium since they have at least 40
quarters of Medicare-covered employment.
The Medicare Part A inpatient deductible that beneficiaries will pay
when admitted to the hospital is $1,364 in 2019, an increase of $24 from
$1,340 in 2018.
Medicare Advantage Premiums
Medicare beneficiaries can choose to enroll in fee-for-service Medicare
(Parts A and B) or can select a private Medicare Advantage plan to
receive their Medicare benefits. Premiums and deductibles for Medicare
Advantage and Medicare Prescription Drug plans are already finalized and
are unaffected by this announcement.
Last month,
CMS released the benefit, premium, and cost sharing information for
Medicare Advantage plans in 2019. On average, Medicare Advantage
premiums will decline while plan choices and new benefits increase. On
average, Medicare Advantage premiums in 2019 are estimated to decrease
by six percent to $28, from an average of $29.81 in 2018.
For a fact sheet on the 2019 Medicare Parts A & B premiums and
deductibles, please visit:
https://www.cms.gov/newsroom/fact-sheets/2019-medicare-parts-b-premiums-and-deductibles.
For more information on the 2019 Medicare Parts A and B premiums and
deductibles (CMS-8068-N, CMS-8069-N, CMS-8070-N), please visit
https://www.federalregister.gov/public-inspection.
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