Social Security
2019
2020
Cost-of-living Adjustment (COLA) for December (payable in January 2020)
2.8% (12/18)
1.6% (12/19)
Social Security for employees and employers
6.20%
6.20%
Medicare (Hospital Insurance) An additional FICA tax of 0.9% applies to high-income beneficiaries with annual incomes above $200,000 ($250,000 for married couples filing jointly). The employer does not pay this additional percentage.
1.45%
1.45%
Maximum Social Security earnings for tax contributions and benefits
$132,900
$137,700
Medicare taxable earnings
no limit
no limit
Earnings required to earn one credit (maximum of four credits per year)
$1,360
$1,410
Retirement Earnings Test exempt amounts
Under full retirement age (FRA), age 66, throughout 2020
$17,640
$18,240
FRA in 2020 (period before the month FRA is attained)
$46,920
$48,600
FRA and over
no limit
no limit
Primary Insurance Amount (PIA) formula – is the basic benefit formula used to calculate a person’s benefit and is applied to their average indexed monthly earnings (AIME). For people attaining age 62 or younger in 2020, the formula as follows:
90% of the first $ of AIME, plus
$926
$960
32% of the next $ of AIME, plus
$4,657
$4,825
15% of the remaining AIME in excess of
$5,583
$5,785
National Average Wage Index
$50,321.89
$52,145.80
Social Security and Medicare Publications
Social Security and Medicare are the main source of retirement income and health care coverage. Use the easy-to-understand booklets to answer the many questions on these programs. Both are full of examples and updated information to help people get the most out of their benefits.
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Part A (Hospital Insurance) voluntary monthly premium if not eligible for premium-free Part A (an estimated 600,000 people pay this rate)
$437
$458
Part A reduced monthly premium for persons with 30-39 credits
$240
$252
Part B (Medical Insurance) standard monthly premium for most current, new, and high-income Medicare beneficiaries, and people whose Medicare premium is paid by Medicaid.
$135.50
$144.60
High-income Part B (Medical Insurance) standard monthly premium*
File an Individual Tax Return
File a Joint Tax Return
0 to $87,000 annual income
0 to $174,000 annual income
$135.50
$144.60
$87,001 to $109,000
$174,001 to $218,000
$189.60
$202.40
$109,001 to $136,000
$218,001 to $272,000
$270.90
$289.20
$136,001 to $163,000
$272,001 to $326,000
$352.20
$376.00
$163,001 to $500,000
$326,001 to $750,000
$433.40
$462.70
over $500,000**
over $750,000**
$460.50
$491.60
Social Security and Medicare Publications
Social Security and Medicare are the main source of retirement income and health care coverage. Use the easy-to-understand booklets to answer the many questions on these programs. Both are full of examples and updated information to help people get the most out of their benefits.
View the Catalog
Original Medicare Plan
2019
2020
Part A inpatient deductible per benefit period
$1,364
$1,408
Part A daily coinsurance 61st through 90th days
$341
$352
Part A daily coinsurance for up to 60 "lifetime reserve" days
$682
$704
Part A daily coinsurance 21st through 100th days in a skilled nursing facility
$170.50
$176
Part B annual deductible
$185
$198
Part D (Prescription Drug Coverage) monthly premium paid to Part D plan Income-related adjustment will be paid to Medicare as follows*:
About $33.19
About $32.74
File an Individual Tax Return
File a Joint Tax Return
0 to $87,000 annual income
0 to $174,000 annual income
Add $0
Add $0
$87,001 to $109,000
$174,001 to $218,000
Add $12.40
Add $12.20
$109,001 to $136,000
$218,001 to $272,000
Add $31.90
Add $31.50
$136,001 to $163,000
$272,001 to $326,000
Add $51.40
Add $50.70
$163,001 to $500,000
$326,001 to $750,000
Add $70.90
Add $70.00
over $500,000**
over $750,000**
Add $77.40
Add $76.40
*Income brackets for beneficiaries based on their 2018 federal income tax return filing status and adjusted gross income in 2020 (2017 returns for 2019). Starting in 2020, the high-income thresholds are indexed for inflation.
**The Bipartisan Budget Act of 2018 set an additional premium level starting in 2019 for high-income beneficiaries.
Part D deductible
$415
$435
Part D initial benefit limit
$3,820
$4,020
Part D catastrophic threshold
$5,100
$6,350
Part D minimum cost-sharing for catastrophic coverage
Generic/Preferred:
$3.40
$3.60
Social Security and Medicare Publications
Social Security and Medicare are the main source of retirement income and health care coverage. Use the easy-to-understand booklets to answer the many questions on these programs. Both are full of examples and updated information to help people get the most out of their benefits.
View the Catalog