Revised payments and withholdings apply to those receiving Medicare benefits, Social Security Benefits, Supplemental Social Security, and for those yet in the workforce.
Medicare Part A Daily Charges
If you are admitted to the hospital in 2020 with original Medicare your deductible for all of the first 60 days will be $1,408.00, up a little over 3% from last year. By day 61 thru 90 after any deductibles, your daily coinsurance will be $352.00. Once day 91 occurs there is a coinsurance of $704.00 that applies to each ‘lifetime reserve day’. There are 60 reserve days available over one’s lifetime where Medicare will pay all costs, except for any daily coinsurance. Alternatively, payment can be covered with a supplemental plan or self-pay.
Medicare Part B Deductibles
Deductibles rise slightly above 7% from 2019 to $198 in 2020. Once the deductible is met, 80% of services will be paid by Part B that are approved and don’t exceed the allowable limit.
If you are eligible and receiving Social Security Benefits below your full retirement age, your income can be as much as $18,240; however, for every $2 over the threshold 50% of benefits will be withheld.
Earnings are taxed for Social Security and Medicare on earnings up to $137,700 for 2020.
If retirement is on the horizon for you, we can help optimize your Social Security planning based on your personal circumstances and provide scenarios for this one-time decision-making process.