The One Thing that is a certainty in life is death and taxes. And of course, the fact that everything costs more, right?  Social Security gives you a raise and Medicare take’s it back.

Look, I know you’ve been bombarded with information about changes, and with the upcoming holidays, who needs more stress?  So, our job right now is to present a summary of some changes in a simple to understand form, (hopefully!)  If you need more details, give my office a call.

  • Part A premiums, deductible, and coinsurance are projected to be higher in 2020.  The premium for Part A is projected to be $460/month in 2020, up from $437/month in 2019.  But remember, you don’t pay for Part A if you have enough work credits.

    The Part A deductible that applies to each benefit period will increase to $1,420 in 2020.

    Now you don’t have to pay the Part A deductible if you have the right kind of insurance?????
  • The standard Part B premium is projected to increase to $144.30/month.

    The Part B deductible will increase to $198 for 2020.
  • Plan F and plan C are going away – don’t panic…. if you have a plan F or plan C, you will be able to keep it.  But if you drop it, you cannot get it back.  So think carefully before you drop your plan F or plan C.  Plan F and Plan C give you 100% coverage provided it is covered by Medicare. 

    And if you want a plan F, you better call ASAP!!!  Time is running out!!!
  • The best option in 2020 will be Plan G — which is essentially identical to Plan F, except Plan G has a Part B deductible of 185.00/year.  Don’t forget, in 2020, the part B deductible is going up to 198.00/year. 
  • The Social Security cost of living adjustment (COLA) is expected to be about 1.6 percent for 2020.  This will increase the average retiree’s total benefit by about $23/month. That’s more than enough to cover the roughly $9 increase in premiums for Part B.  For additional information on Social Security and the cost of living adjustment, go to the Social Security website at: (
  • Drug coverage in 2020: Ok, as many of you know and for those who do not know, the Medicare drug plan has changed every year since 2006.  Well in 2020, all the changes are supposed to be over.   One of the main problems for Seniors is trying to understand their cost in the GAP or Donut hole.  Well, going forward that will be super easy.  
  • The Gap or Donut Hole:  Starting in 2020, your cost in the donut hole will be 25% of the drug cost.  It is that simple.  It does not matter if it is generic or name brand, your cost will be 25%.  If your prescription has an average retail cost of 300.00 for a 30 day supply, your copay will be 75.00.
  • Wellness and the idea of keeping your healthy:  another change for 2020 and forward will be the push to keep you healthy.  Medicare and for that matter, the entire Health care system in this Country is moving to a system that is going to pay for outcomes versus paying for each test or procedure.  So over the next few years, you are going to see a big push towards preventative Medicine and keeping you healthy. 
  • Medicare Advantage plans:  These plans are gaining popularity and will not go away.  Medicare Advantage plans focus on preventative medicine and keeping you healthy which is the model for the foreseeable future.  So ignore all the rumors about Medicare Advantage plans going away. 

So what do you think????

Do you have a decent understanding on Medicare and the changes in 2020?  If you have any questions, do not hesitate to call. Time is of the essence now, and our team at Gary Smith Agency is here to help lead you into the new year with confidence!