CMS announced September 24 that “Medicare Advantage [MA] premiums in 2020 are expected to decline 23% from 2018 while plan choices, benefits and enrollment continue to increase.” This average monthly premium will be the lowest rate in 13 years. Accompanying this announcement, for the first time in a decade, a new Medicare Plan Finder was launched on Medicare.gov.
CMS boasts the following advantages to the 2020 MA plans:
- The Medicare Advantage average monthly plan premium is expected to decrease 14% to $23.00 (estimated) in 2020 from an average of $26.87 in 2019. Since 2017, the average monthly Medicare Advantage premium has decreased by an estimated 27.9%. This is the lowest that the average monthly premium for a Medicare Advantage plan has been since 2007.
- Beneficiaries will have more plan choices, with about 1,200 more Medicare Advantage plans operating in 2020 than in 2018.
- The average number of Medicare Advantage plan choices per county will increase from about 33 plans in 2019 to 39 plans in 2020. This represents an increase of 49% since 2017.
- Medicare Advantage continues to be popular, with enrollment projected to increase to an all-time high of 24.4 million beneficiaries from the current enrollment of 22.2 million, out of approximately 60 million people currently enrolled in Medicare. Enrollment in Medicare Advantage in 2020 is expected to have increased by 30.6% since 2017.
- Coupled with the previously announced 13.5% decline in the average monthly basic Part D premium, beneficiaries have saved about $2.65 billion in Medicare Advantage and Part D premium costs since 2017. The projected average monthly basic Part D premium of $30 in 2020 is the lowest the Part D basic premium has been since 2013.
This announcement comes just weeks prior to the Medicare Open Enrollment period between October 15 and December 7.
2020 MA premiums and costs can be found here.