2021 will see changes to Medicare deductibles, premiums and coinsurance for Part A and Part B. These changes are set by Congress and are not decided by insurance companies. Let’s check out the 2021 Medicare cost increases and find out how Senior65 can help you find insurance to pay for them.

Medicare Part A Premiums

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

Medicare Part A Deductibles and Coinsurance

Below we show the Part A Deductible and Coinsurance amounts for both 2020 and 2021:

Part A Deductible and Coinsurance Amounts for Calendar Years 2020 and 2021
2020 2021
Inpatient hospital deductible $1,408 $1,484
Daily coinsurance for 61st-90th Day $352 $371
Daily coinsurance for lifetime reserve days $704 $742
Skilled Nursing Facility coinsurance $176 $185.5

Standard Medicare Part B Premium

Medicare Part B covers physician services, outpatient hospital services, certain home health services, durable medical equipment, and certain other medical and health services not covered by Medicare Part A

The standard monthly premium for Medicare Part B enrollees will be $148.5 for 2020, an increase of $3.90 from $144.60 in 2020.

Medicare Part B Income-Related Monthly Adjustment Amounts

Every beneficiary’s Part B monthly premium is based on his or her income. The 2021 Part B total premiums for high income beneficiaries are shown in the following table:

Individual tax returns with income Joint tax returns with income Income-related monthly adjustment Total monthly premium
Less than $88,001 Less than $176,001 $0.00 $148.50
Greater than $88,000 and less than $111,001 Greater than $176,000 and less than $222,001 59.40 207.90
Greater than $111,000 and less than $138,001 Greater than $222,000 and less than $276,001 148.50 297.00
Greater than $138,000 and less than $165,001 Greater than $276,000 and less than $330,001 237.60 386.10
Greater than $165,000 and less than $500,000 Greater than $330,000 and less than $750,000 326.70 475.20
Greater than or equal to $500,000 Greater than or equal to $750,000 356.40 504.90

Premiums for married high-income beneficiaries who lived with their spouse at any time during the taxable year, filing a separate return than their spouse:

Married but who file separate tax returns Income-related monthly adjustment Total monthly premium
Less than or equal to $88,000 $0.00 $148.50
Greater than $88,000 and less than $412,000 326.70 475.20
Greater than or equal to $412,000 356.40 504.90

Medicare Part B Deductible

The annual deductible for all Medicare Part B beneficiaries is $203 in 2021, an increase of $5 from 2020. The Part B deductible is what you will pay first each year and only applies to non-preventive uses of Part B like a visit to the doctor for a sore throat. Those with Medicare Supplement Plan F would not pay this deductible as it is covered by that Medigap plan.

Medigap 2021 Updates

Medigap is supplemental insurance to Medicare and is designed to help cover some or all of the deductibles and co-insurance mentioned above.

High Deductible F and High Deductible G have changes in 2021. As the name suggests, these plans have a deductible before coverage kicks in. High Deductible F and High Deductible G both now have a deductible of $2,370 for 2021, adding $30 to the $2,340 of 2020.

Even though Medigap Plan K and Medigap Plan L are rarely purchased by consumers, in 2021 there are changes to their out-of-pocket maximum. Plan K’s maximum is now at $6,220 ($5,880 in 2020), while Plan L’s is at $3,110 ($2,940 in 2020).

Note: The two most popular plans (Medigap plan F and Medigap Plan G) have no changes in 2021. If you need assistance enrolling in Medigap coverage, please contact a Senior65.com agent at 800-930-7956 or get a Medigap quote here.

Medicare Advantage 2021 Updates

Medicare Advantage plans are offered by private companies, replacing Original Medicare and usually offering more coverage for little more money.

Plans are not standardized as are Medicare and Medigap, and coverage can often vary wildly.

What MA plans do have in common is an out-of-pocket maximum of $7,550 for 2021, a big change from $6,700 in 2020. If you need assistance enrolling in Medicare Advantage coverage, please contact a Senior65.com agent at 800-930-7956 or get a Medicare Advantage quote here.

You can learn more about the changes addressed in this Senior65 article from this CMS update. Not sure if Medigap or Medicare Advantage is right for you? Check out our Medicare insurance recommendation engine.