Medicare Outpatient Premiums Rise with Drug Spending in 2020

Increased program spending on drugs administered in physicians’ offices will push traditional Medicare premiums for outpatient care higher in 2020, the federal government announced on Nov. 8.

The standard monthly premium for Medicare Part B coverage will be $144.60 in 2020, up $9.10 from $135.50 in 2019. The annual deductible will be $198, up $13 from the annual deductible of $185 in 2019.

Medicare Part B covers medical services and supplies, preventive services, durable medical equipment, and ambulance services.

Medicare premiums for inpatient hospital coverage and skilled nursing care, known as Part A coverage, will also increase in 2020 to $1,408, the Centers for Medicare & Medicaid Services announced. That’s up $44 from $1,364 in 2019.

The Part A inpatient hospital deductible covers beneficiaries’ share of hospital costs for the first 60 days of a Medicare-covered hospital stay. Next year, beneficiaries will pay a daily coinsurance rate of $352 beginning on day 61 of their hospital stay through the 90th day.