In 2020, about 70 percent of Medicare recipients experienced a 7 percent increase in their monthly Medicare Part B insurance premiums, amounting to about $9 a month, and an annual deductible increase of $13.1
According to CMS.gov, the increase was due to “rising spending on physician-administered drugs. These higher costs have a ripple effect and result in higher Part B premiums and deductible.”
It is uncertain if Medicare rates will rise or fall in the next calendar year. Many factors could influence health insurance rates related to Medicare:
As of July 2020, Congress was considering special legislation to freeze Medicare Part B premiums as part of another COVID-19 relief bill.2 How this could affect rates in the coming years is unknown.
Will pandemic-related hospitalizations in 2020 increase costs for Medicare beneficiaries in the coming year? CMS.gov reported that more than 110,000 Medicare beneficiaries were hospitalized for COVID-19 treatment between January 1 and May 16, 2020.3
If your annual reported income increases, or you change the way you file your taxes, your Part B monthly premium could go up based on income.4
It is unknown if Social Security recipients will receive a cost-of-living increase in 2021. This increase or lack of increase can be a factor in government decisions to increase Medicare premium and deductible rates. 5
While it is hard to predict if Medicare premium rates will rise in the coming year, Medicare beneficiaries are not helpless. Each beneficiary has the option to shop around and switch to other plans if they so choose, such as the addition of a Medicare Supplement insurance policy to cover costs, such as increasing deductibles and co-pays.
Catholics in the Upper Midwest are choosing our Medicare supplement health insurance because it: helps pay the health care costs that are above Medicare-allowed amounts including co-pays and deductibles; allows you to see any doctor that accepts Medicare; and covers care when traveling out-of-network.
We can also offer you plan comparisons, unbiased guidance and customized choices when you have a quick chat with one of our Medicare Supplement Specialists.
Mon-Thu: 8 am to 4:45 pm
Fri: 8 am to 12:30 pm
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Medicare Supplement Health Insurance is underwritten by:
Catholic United Financial
Medicare Supplement Administrative Office
PO Box 27248, Salt Lake City, UT 84127-0248
Catholic United Financial and its Medicare Supplement insurance policy are not connected with or endorsed by the US Government or the federal Medicare program. Plan options vary depending on where you live. This is a solicitation of insurance. © 2020 Catholic United Financial
MSW919.2 Last update: 8/20/2020
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Copyright © 2020 Catholic United Financial. Catholic United Financial is not licensed in all states. Nothing contained herein should be construed as a solicitation for insurance, financial products or annuity products in any state in which Catholic United Financial is not licensed. Catholic United Financial is licensed to sell insurance in Minnesota, Wisconsin, Iowa, North Dakota, and South Dakota. View our Privacy Statement. Catholic United Financial is not permitted to give tax or legal advice. The information given is based on our understanding and interpretation of laws and regulations currently in effect. You may wish to consult your personal tax or legal advisor with questions about your specific situation.
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