The Medicare Agent Blog

Analysis – The Medicare Part D 2020 Landscape

The Centers for Medicare & Medicaid Services (CMS) recently released premium and cost-sharing information for Part D plans for the 2020 calendar year. Below are the highlights of a preliminary analysis.

The 2020 Medicare Part D premiums are falling…and rising.

  • Based on a forecast by CMS in July, it is expected there will be a 13% decrease in the average PDP premium from $47.21 in 2019 to $40.90 in 2020.
  • Roughly 58% of all Medicare Part D beneficiaries currently enrolled in a stand-alone 2019 PDP will see an increase in their 2020 monthly premium — unless they change coverage to a more affordable 2020 PDP or MAPD

Here are the lowest and highest premium stand-alone PDP’s:

  • The California Clear Spring Health Premier Rx (PDP) will have the lowest 2020 Part D premium of $12.80.
  • In two other states, Arizona and Wisconsin, the WellCare Wellness Rx (PDP) will have the lowest monthly premium ($13.10).
  • In all other states across the country, the new Humana Walmart Value Rx Plan (PDP) will have the lowest monthly premium of $13.20.
  • The 2020 Medicare Part D plan with the most expensive premium will be the BlueCross Rx Plus (PDP) in South Carolina at $191.40 per month.

There are more stand-alone Medicare Part D plan options in most states.

  • Stand-alone 2020 PDP plans will increase to 948 plans nationwide (compared to 901 plans offered in 2019).
  • New York will have the largest gain of PDPs with 4 additional plan choices; most other states will have 1-3 additional PDP options
  • Connecticut, Massachusetts, Rhode Island, Vermont, and New Mexico will find slightly fewer PDP options in 2020.

More 2020 Medicare Part D plans to qualify for the LIS $0 premium

  • Most states will have the same or more 2020 Medicare Part D plans qualifying for the state’s Low-Income Subsidy (LIS) $0 benchmark premium.
  • The state offering the smallest selection of $0 premium LIS PDPs is Ohio, offering only two. Arizona will offer twelve $0 premium LIS plans.
The Donut Hole will close in 2020.
  • The 2020 Donut Hole discount will increase to a 75% discount for all formulary medications (meaning the client pays 25% of retail for both brand-name and generic formulary medications purchased while in the Coverage Gap).
  • But fewer 2020 PDP’s will offer additional Donut Hole coverage. About 20% of all stand-alone 2020 Part D plans offer some level of gap coverage.

Also, Some 2020 Medicare Part D plans are changing names or carriers. 

  • The 2019 Humana Walmart Rx Plan (PDP) will become the 2020 Humana Premier Rx Plan.
    • A new 2020 Humana Walmart Value Rx Plan (PDP) will be introduced.
  • The 2019 Aetna Medicare Rx Value Plus (PDP) plan will become the 2020 WellCare Medicare Rx Value Plus (PDP).

Trusted American Insurance Agency is a National Marketing Organization (NMO) headquartered in Roseville, CA. Trusted American provides a full range of insurance and financial services products across all 50 states for all major and niche carriers, with a specialty in the Senior Marketplace.

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