Medicare premiums and other components tend to change annually. While these changes usually aren’t too significant, it can be important to learn about them and adjust your budget accordingly. Here’s what you need to know about changes to Medicare, arriving in 2020.

Part B premiums will increase.

For many Medicare beneficiaries, the Part B premium will climb from $135.50 to $144.30.

Since the Social Security COLA has been determined at 1.6 percent, the average benefit check will rise by 23 dollars per month. For most retirees, the Social Security increase will cover rising Part B premiums, which are deducted from their checks.

However, if your COLA won’t cover the premium increase, it will be limited to the amount of your Social Security benefit increase only. This is due to a rule that states Social Security checks cannot decrease. This rule affects only those with benefit checks that are much smaller than the average.

Part A deductibles will increase.

The deductible for Medicare Part A will jump from $1364 to $1420. This refers to the amount that you must pay out of pocket for certain medical expenses, before Medicare covers the rest. That’s a difference of 56 dollars per year; not a lot, but retirees should consider the difference in annual expenditures when planning their budgets.

Part B deductibles will increase.

Like Part A, Part B benefits are also subject to a deductible. This is set to increase from $185 to $197 annually, a difference of 12 dollars.

These changes arrive in January 2020. Deductibles affect you throughout the year, of course, but your Part B premium will rise beginning with January’s benefits. If you have any questions, contact our office and we’ll help to clarify these changes for you.