Medicare changes for 2021 will affect deductibles, premiums and coinsurance. A little-known fact is all Medicare Part A & B changes are set by Congress; they are NOT decided by insurance companies. Now that you know who to blame, let’s get into what the costs are for 2021.

2022 Medicare premium, deductibles and other costs.

2021 Medicare Changes: Premiums, Deductibles and Coinsurance

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 to pay their Part A premium. Medicare waives the premium as long as you or your spouse have worked for 10 years (40 quarters).

If you don’t qualify for premium-free Part A, here is how much you’ll pay for your Medicare Part A premium:

2021 Medicare Part A Monthly Premium by Years Worked*
10 years/40 quarters or more 7.5 – less than 10 years/30-39 quarters less than 7.5 years
$0 $259 $471

*If you or your SPOUSE worked these years and paid taxes.

Medicare Part A Deductibles and Coinsurance

Below we show the Part A Deductible and Coinsurance amounts for 2021. Compare to Medicare 2020 costs:

Medicare Part A Out-of-Pocket Costs
2021
Inpatient hospital deductible $1,484**
Daily coinsurance for 61st-90th Day $371 per day
Daily coinsurance for lifetime reserve days $742 per day<
Skilled Nursing Facility coinsurance $185.50 per day<

**Part A deductible can be paid multiple times per year! You’re required to pay each time you’ve been out of the hospital for 60 days.

Standard Medicare Part B Premium

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

Most Medicare beneficiaries pay the standard 2021 Medicare Part B premium rate of $148.50. This nominal monthly increase of $4 more than 2020 is only for those who make less than $80k per year. Congress decided those with a higher income should pay a higher Part B premium. Let us explain below.

Medicare Part B Income-Related Monthly Adjustment Amounts

Medicare’s Part B monthly premium increases based on your income -and can be pricey! Up to $505 a month for Part B. Below you’ll see where you fall on the 2021 Part B income-related monthly adjustment chart.

Monthly Part B premium for those who file as an individual or married filed jointly:

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

Monthly Part B premium: Married and live with spouse but file separately:

Married Filed Separately** 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.

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).

Get a Medigap Quote Enroll in Medigap

Note: Medigap Plan G has no changes in 2021. If you need assistance enrolling in Medigap coverage, please contact a Senior65.com agent at 800-930-7956.

Medicare Advantage 2021 Updates

Medicare Advantage (MA) 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.