Not sure what plan is right for you? Take Our Medicare Quiz

Request A Quote

Speak to an advisor

866-MEDIGAP (633-4427)

TTY: Dial 711

Email Us

Not sure what plan is right for you? Take Our Medicare Quiz

Have Medicare costs changed in 2021? Yes, costs associated with Part A and Part B are higher in 2021


Part A Premium: Medicare Part A covers inpatient hospital services, skilled nursing facility services, home health care, and hospice. The Part A premium may be different depending on your work history.

Most people do not pay a premium for Part A. If you or your spouse has worked more than 10 years, you will generally not have to pay a Part A premium.

The cost for Part A premium is dependent on how many quarters you have worked. If you did not work over 40 quarters, you might be eligible under your spouse. 

Part A Costs:

Medicare Part A costs in 2021
Premium if you have worked over 40 quarters$0
Premium if you have between 30 and 39 working quarters$259/month
Premium if you have fewer than 30 working quarters$471/month
Deductible$1,484/benefit period
Inpatient hospital daily coinsurance for days 61 to 90$371/day
Inpatient hospital daily coinsurance for 60 lifetime reserve days$742/day
Skilled nursing facility (SNF) daily coinsurance for days 21 to 100$185.50/day

Part B Premium:

The Part B base premium in 2021 is $148.50. Keep in mind, $148.50 is the standard premium for people with a yearly income equal to or below $88,000 for an individual ($176,000 for a married couple). If your income is higher than that, you may have to pay an income-related monthly adjustment amount, also known as IRMAA.

Part B Deductible and Coinsurance:

If you have Original Medicare, you will pay a Part B deductible of $203 in 2021. You will continue to pay a 20% coinsurance for services covered by Part B. The amount you pay for Medicare Advantage Plan deductibles, copayments, and/or coinsurances varies by plan.

Part D Changes:

Prescription drug plan stages have changed in 2021. Learn more about Part D changes.

Medicare Part D – Prescription Drug Plan Stages:

Stage 1Stage 2Stage 3Stage 4
Annual Deductible$445 in 2021Initial Coverage$4,130 in 2021Coverage Gap – Donut Hole$6,550 in 2021Catastrophic Coverage$3.70 / $9.20 or 5%
You pay 100% for the costs of your prescriptions until you reach your deductible. Most plans have a $445 deductible in 2021. Some plans are lower or have a $0 deductible. Deductible only applies to Tier 3-5 on most plans.You pay a copay (percentage of the drug cost) when you fill a prescription. This stage will last until you reach $4,130 in 2021 in out-of-pocket expenses. Known as the Donut Hole. You are responsible for paying 25% to 37% of the costs for both brand name and generic prescriptions. You will stay in the donut hole until your costs reach $6,550 in 2021.~ 12% of Medicare Beneficiaries reach the Coverage Gap.Once you reach catastrophic coverage, copays are typically lower than during the Initial Coverage stage. This stage will last for the rest of the year. ~4% of Medicare Beneficiaries reach Catastrophic Coverage
Total Maximum Out-of-Pocket Spending: $6,550 in 2021.No Limit

Learn More: Medicare Advantage Plans: Example of Costs for Deductible, Copays, Coinsurance and more.

People Also Read: How much does a Medicare Supplement (Medigap) plan cost?

Meet Melissa MacCalla

Medicare is not simple and can be hard, frustrating, and downright confusing for most. I love when I get someone on the phone and I am given the opportunity to explain the difference in plans to them and have Medicare make sense. I enjoy talking to clients year after year, hearing about their families growing or them asking about mine.


Senior Healthcare Solutions, you truly stand out from most other insurance agents. Thank you so much for all of your help and I know that you will have nothing but success with how you conduct business.

Joan B.

Montgomery, AL

Other posts you may interested in…