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

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.

-Melissa

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.

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Montgomery, AL

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