The Centers for Medicare & Medicaid Services (CMS) announced the 2021 Medicare premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs.
Medicare premium and deductible highlights for 2021:
CMS Administrator Seema Verma says, “Thanks to President Trump’s leadership, Medicare Part B premiums remain steady and seniors have more plans than ever to choose from, many new benefits, and historically low Medicare Advantage and Part D premiums.”
Related Reading: What You Actually Need to Know From the 2020 Medicare Trustees Report
For 2021, the Medicare Part B monthly premiums and the annual deductible are higher than the 2020 amounts.
The standard monthly premium for Medicare Part B enrollees will be $148.50 for 2021, an increase of $3.90 from $144.60 in 2020. CMS reports that recent legislation signed by President Trump significantly dampens the 2021 Medicare Part B premium increase that would have occurred given the estimated growth in Medicare spending next year.
Medicare spending is estimated to grow due to people seeking care they may have delayed during the COVID-19 public health emergency, availability of more COVID-19 treatments, and availability of COVID-19 vaccines (for which CMS recently announced that there would be no out-of-pocket costs for seniors).
The annual deductible for all Medicare Part B beneficiaries is $203 in 2021, an increase of $5 from the annual deductible of $198 in 2020.
Further Reading: Medicare Basics for New Senior Market Insurance Agents
The 2021 Part B total premiums or high-income beneficiaries have increased slightly for 2021:
Premiums for high-income beneficiaries who are married and lived with their spouse at any time during the taxable year, but file a separate return, are as follows:
The Medicare Part A deductible increased $76 for 2021 to $1,484.
In 2021, beneficiaries must pay a coinsurance amount of $371 per day for the 61st through 90th day of a hospitalization ($352 in 2020) in a benefit period and $742 per day for lifetime reserve days ($704 in 2020).
For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care services in a benefit period will be $185.50 in 2021 ($176.00 in 2020).
Further Reading:
