Medicare recipients in 2020 will see some changes to the way that Medicare structures its financial requirements, and this includes the recipient’s co-insurance liability. If you depend on Medicare for healthcare, contact your plan manager to discuss your current and anticipated healthcare needs so that you can fully understand how changes in 2020 will affect your wallet and your ability to direct your healthcare choices.

How Much is Medicare Coinsurance in 2020?

Although 2020 brings changes to premiums and deductible amounts for some Medicare recipients, it also brings changes to the coinsurance rate that determines how much a recipient will need to pay out of pocket. Coinsurance is the fee that is passed on to the recipient after a deductible has been met and premiums are current. This differs from a co-payment in that co-pays are generally flat fees that stay the same regardless of deductible or premium amounts.

In 2020, one of the largest changes to the coinsurance framework will be the cost for hospitalization. With Original Medicare benefits, a recipient who requires hospitalization will receive 60 days of coverage. Afterward, for an additional 30 days, the recipient will be charged a coinsurance amount of $352 per day. Some Medicare recipients may also have lifetime reserve days available to use that can stretch the time spent hospitalized for a further 60 days at a reduced rate. If you utilize lifetime reserve days, these days will require a coinsurance fee of $704 per day.

What Has Changed Since 2019?

The 2020 rates for coinsurance reflect an increase over 2019 by $11 per day for hospitalization from days 61 through day 90 and an increase of $22 for each day that a lifetime reserve day is used. While these aren’t tremendous increases, they can add up over time. It’s also important to keep in mind that beyond 90 days, the patient will be responsible for the full cost of all hospital treatment if lifetime reserve days are not available.

Premium and Deductible Changes in 2020

When considering the increase in coinsurance amounts, you’ll also need to factor in premium increases. In 2020, your last tax return and filing status will determine the bracket in which you are placed. For many individuals, married or not, the monthly premium required in order to maintain Medicare coverage is $144.60, but it can reach as high as $491.60 per month. Deductible rates are also on the rise in 2020 as most Medicare members will see an increase of around $13 that needs to be met prior to benefits applying to healthcare costs. Once again, this is where it pays to discuss your individual situation with a Medicare expert who can explain your options and possibly point you in the direction of plans that make sense for your financial and healthcare needs.

Additional Savings May Be Available

If you’re having a hard time meeting your financial obligations to Medicare for coverage, you may be able to take advantage of additional savings through dual-enrollment with Medicaid. This program can assist in covering healthcare expenses in conjunction with Medicare benefits if you qualify. You may also be able to save money by enrolling in a Medicare Advantage plan in order to reduce monthly costs or receive additional healthcare benefits that are not included in Original Medicare. Remember that Medicare Advantage plans are provided by private insurance companies, so it would be a good idea to shop around to find the provider and plan that meets your needs.

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