Medicare

What Will Medicare Cost in 2021?

By November 10, 2020January 4th, 2021No Comments

Medicare Parts A and B’s premiums, deductibles, and copays for 2021 were recently announced by the Centers for Medicare and Medicaid Services (CMS). What does it mean for you and your clients? We’re ready to explain that for you.

Medicare Part B

The standard monthly premium for Medicare Part B enrollees will be $148.50 in 2021, an increase of $3.90 from $144.60 in 2020. CMS also announced that the annual deductible for Medicare Part B beneficiaries is $203 in 2021, an increase of $5 from $198 in 2020.

Medicare Part A

Medicare Part A covers inpatient hospital, skilled nursing facility, and some home health care services. About 99 percent of Medicare beneficiaries do not pay a Part A premium since they have at least 40 quarters of Medicare-covered employment.

The Medicare Part A inpatient deductible that beneficiaries will pay when admitted to the hospital is $1,484 in 2021, an increase of $76 from $1,408 in 2020.

Medicare Part A 2021 Deductible & Coinsurance Amounts

Form of Cost Sharing20202021
Inpatient Hospital Deductible$1,408$1,484
Daily Coinsurance (Days 61-90)$352$371
Daily Coinsurance for Lifetime Reserve Days$704$742
Skilled Nursing Facility Coinsurance$176$185.50

The chart below breaks down how your clients’ annual incomes may affect their 2021 Part B monthly premiums.

File Individual Tax ReturnFile Joint Tax ReturnMonthly Adjustment2021 Part B Monthly Premium
$88,000 or less$176,000 or less$0$148.50
$88,001 to $111,000$176,001 to $222,000$59.40$207.90
$111,001 to $138,000$222,001 to $276,000$148.50$297.00
$138,001 to $165,000$276,001 to $330,000$237.60$386.00
$165,001 to $500,000$330,001 to $750,000$326.70$475.20
$500,001 or more$750,001 or more$356.40$504.90

File Separate Tax Return from SpouseMonthly Adjustment2021 Part B Monthly Premium
$88,000 or less$0$148.50
$88,001 to $412,000$326.70$475.20
$412,001 or more$356.40$504.90

Highlights for 2021 Open Enrollment include:
  • A 34 percent decrease in average monthly premiums for Medicare Advantage plans since 2017. This is the lowest average monthly premium since 2007.
  • More than 4,800 Medicare Advantage plans are offered for 2021, compared to about 2,700 in 2017.
  • Medicare beneficiaries can join a prescription drug plan that will offer many types of insulin at a maximum copayment of $35 for a 30-day supply. More than 1,600 Medicare Advantage and Part D prescription drug plans are participating in the Part D Senior Savings Model for 2021.

Note: Table figures are from CMS’ 2021 Medicare Parts A & Premiums and Deductibles Fact Sheet. 2021 Open Enrollment Highlights are also from CMS, found here.

 

We want you to be successful in 2021! Using a local Medicare FMO in North Carolina keeps you up to date with the most important news in your industry. If you would like to talk with us about helping you market for the new year, give us a call at 919-460-6073 or email us at info@carolinaseniormarketing.com.