2021 Costs for Medicare

Medicare costs change every year, and most of the time, you will see cost increases. Facing a Medicare health insurance plan with costs that change each year can be overwhelming. However, when you understand the changes in Medicare costs, you can prepare adequately. We will go over the cost of all Medicare parts to give you an idea of what to expect for 2021.

2021 Cost for Medicare Part A

If you have worked 40 quarters in the United States, your Medicare Part A has already been covered via Medicare payroll taxes. This means you do not have to pay the Medicare Part A premium. However, if you have worked less than 40 quarters but more than 30 quarters, you are expected to pay a premium of $259 per month. Those with fewer than 30 quarters of work history are expected to pay a Medicare Part A premium of $471 per month in 2021.

In 2021, the Part A deductible is $1,484. The deductible covers the beneficiary’s part of the costs for the first sixty days of their inpatient hospital care benefit period. In 2021, you must pay a coinsurance of $371 for the 61st day through the 90th day of hospitalization.

2021 Cost for Medicare Part B

The premium Medicare beneficiaries have to pay for Part B is based on the Modified Adjusted Household Gross Income (MAGI). SSA will go through your IRS tax return from 2 years before and use it to determine what you will pay for Medicare Part B. The things that contribute to your MAGI include capital gains, interest, money earned through wages, and dividends from investments.

The standard monthly premium for Part B in 2021 is $148.50. The Medicare Part B annual deductible increased to $203 in 2021 from $198 in 2020.

2021 Cost for Medicare Part C & Part D

Medicare Part C, or Medicare Advantage, is an alternative to Original Medicare. If you opt for a Part C plan, you will still have to pay your Part B premium on top of the costs you will pay for Part C. Some Part C plans do have a $0 premium. However, the average premium of a Part C plan in 2021 is $21, which is a decrease from $23.63 in 2020.

Medicare Part D premiums are determined by your income, meaning the higher your income, the higher your premium might be. The average premium for Medicare Part D in 2021 is about $30. Those with high-cost prescriptions may also get into a coverage gap. The coverage gap starts when the total your Medicare Part D plan paid has reached $4,130, an increase from $4,020 in 2020. Once it reaches this amount, you will begin paying about 25% of your prescription costs.

For more information about the 2021 costs for Medicare, contact Advanced Insurance Concepts. Our experienced Medicare professionals can help you determine how much Medicare will cost you.