The Medicare Advantage plan Maximum Out-of-Pocket (MOOP) threshold limits how much you will
spend on co-payments and co-insurance for eligible Medicare Part A (in-patient or hospitalization) and Medicare Part B (out-patient or doctor visit) coverage. A higher MOOP limit means you will pay more out-of-pocket for your
Medicare Part A and Medicare Part B covered services before reaching
the annual maximum cost threshold.
Each Medicare Advantage plan sets their plan's MOOP (see below for an explanation) — with the approval of the Centers for Medicare & Medicaid Services (CMS).
The range of in-network MOOP
The 2020 Medicare Advantage MOOPs range from $0 to $6,700 — and often Medicare Advantage plans with a MOOP of $0 are
Medicare Advantage PFFS plans, MSAs, or Cost plans.
As reference, you can see each Medicare Advantage plan's MOOP using our 2020 Medicare Advantage Plan Finder (or
MA-Finder.com/2020) or you can browse through the states/counties via our
2020 Overview by State.
2020 MOOP dispersion
We found that across all 2020 Medicare Advantage plans, 152 plans increased MOOP, 1,156
MOOPs remained unchanged, and 256 plans reduced the plan's MOOP
threshold.
When MOOP is evaluated across all Medicare Advantage plans, we see a
decline in the average 2020 MOOP limit. The 2020 average MOOP is around
$4,993 as compared to $5,089 in 2019.
The table below illustrates some of the more frequently occurring 2020 MOOP limits across all types of Medicare Advantage plans. Note that 76% of 2020 Medicare Advantage plans have a MOOP over $3,400.
Top 2020 MOOP Limits for Medicare Advantage Plans
|
|
Number of Medicare Advantage Plans
(MA & MAPD) |
MOOP
Limits
|
2020 |
2019 |
Change ’19 to ‘20 |
2018 |
2017 |
$6,700 |
979 |
947 |
32 |
3% |
911 |
761 |
$3,400 |
410 |
365 |
45 |
12% |
318 |
296 |
$5,900 |
232 |
189 |
43 |
23% |
142 |
114 |
$4,900 |
167 |
160 |
7 |
4% |
104 |
104 |
$5,500 |
142 |
130 |
12 |
9% |
79 |
60 |
$4,500 |
121 |
107 |
14 |
13% |
84 |
71 |
$5,000 |
92 |
89 |
3 |
3% |
75 |
69 |
$0 |
80 |
75 |
5 |
7% |
69 |
131 |
$3,900 |
96 |
42 |
54 |
129% |
42 |
43 |
Medicare Advantage plans may set their MOOP threshold as any amount within the ranges shown in the CMS table below. As an example, HMO plans can set their plan's MOOP as high as $6,700; however, an HMO plan that sets MOOP within the voluntary range ($0 - $3,400) is granted greater flexibility for individual service category cost-sharing.
2020 Voluntary and Mandatory
MOOP Range by Type of Medicare Advantage plan
|
Plan Type |
Voluntary |
Mandatory |
HMO |
$0 - $3,400 |
$3,401 - $6,700 |
HMO POS |
$0 - $3,400 In-network |
$3,401 - $6,700 In-network |
Local PPO |
$0 - $3,400 In-network and
$0 - $5,100 Combined |
$3,401 - $6,700 In-network and
$3,401 - $10,000 Combined |
Regional PPO |
$0 - $3,400 In-network
and
$0 - $5,100 Combined |
$3,401 - $6,700 In-network and
$3,401 - $10,000 Combined |
PFFS (full network) |
$0 - $3,400 Combined |
$3,401 - $6,700 Combined |
PFFS (partial network) |
$0 - $3,400 Combined |
$3,401 - $6,700 Combined |
PFFS (non-network) |
$0 - $3,400 |
$3,401 - $6,700 |
Important: In-network MOOP and out-of-network MOOP
As can be seen in the table above, out-of-network cost-sharing expenses may fall into a higher MOOP (for example, see Regional PPO above with a higher "combined" MOOP limit)
or (
IMPORTANT!) your out-of-network cost-sharing may not count toward your MOOP limit, as with the HMO POS plan type.
Please notice that the voluntary and mandatory 2020 MOOP limits did not increase over the 2019 figures.
How are the voluntary and mandatory MOOP limit set?
The voluntary and mandatory MOOP limits are set by the Centers for Medicare and Medicaid Services (CMS). Per CMS, the mandatory MOOP amount represented approximately
the 95th percentile of projected beneficiary out-of-pocket spending. In other words, five percent of Original Medicare beneficiaries are expected to incur
approximately $6,700 or more in Parts A and B deductibles, co-payments and coinsurance. The voluntary MOOP amount of $3,400 represents approximately the
85th percentile of projected Original Medicare out-of-pocket costs.
MOOP and Special Needs Plans (and MMPs)
You may note that Medicare Advantage MMP (Medicare-Medicaid plans) and
Special Needs Plans,
such as for dual Medicare/Medicaid eligible beneficiaries (D-SNPs), do
not have a MOOP.
Reminder about MOOP and TrOOP
Your Total Out-of-Pocket Limit (TrOOP) for your Medicare Part D prescription drug coverage
is not the same as your Medicare Part A and Medicare Part B Maximum Out-of-Pocket (MOOP). (For more information, please see our Frequently Asked Quesiton:
TrOOP is not MOOP.)