Medicare and Social Security Changes for 2021
A few changes with Medicare are happening in 2021. Part B premiums are going up, Part A and B deductibles are increasing, and coinsurance amounts for the Medicare Part A and Part B programs are adjusting. Social Security benefits will increase 1.3 percent based on the cost of living adjustment.
Medicare Part B Premiums/Deductibles
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.
Each year the Medicare premiums, deductibles, and copayment rates are adjusted according to the Social Security Act. 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. The annual deductible for all Medicare Part B beneficiaries is $203.00 in 2021, an increase of $5 from the annual deductible of $198 in 2020. This Part B deductible is relevant to people with a Plan G Medicare supplement, plan G does not cover the part B deductible. People with Medicare Advantage plans will not notice the increase.
Medicare Part B Income-Related Monthly Adjustment Amounts
Since 2007, a beneficiary’s Part B monthly premium is based on his or her income. These income-related monthly adjustment amounts (IRMAA) affect roughly 7 percent of people with Medicare Part B. The 2021 Part B total premiums for high income beneficiaries are shown in the following table:
|Beneficiaries who file individual tax returns with income:||Beneficiaries who file joint tax returns with income:||Income-related monthly adjustment amount||Total monthly premium amount|
|Less than or equal to $88,000||Less than or equal to $176,000||$0.00||$148.50|
|Greater than $87,000 and less than or equal$109,000||Greater than $174,000 and less than or equal$218,000||59.40||207.90|
|Greater than $109,000 and less than or equal to $136,000||Greater than $218,000 and less than or equal to $272,000||148.50||297.00|
|Greater than $136,000 and less than or equal to $163,000||Greater than $272,000 and less than or equal to $326,000||237.60||386.10|
|Greater than $163,000 and less than $500,000||Greater than $326,000 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|
Medicare Part A Premiums/Deductibles
Medicare Part A covers inpatient hospital, skilled nursing facility, and some home health care services. About 99 percent of Medicare beneficiaries do not have a Part A premium since they have at least 40 quarters of Medicare-covered employment.
The Medicare Part A inpatient hospital deductible that beneficiaries will pay when admitted to the hospital will be $1,484 in 2021. The Part A inpatient hospital deductible covers beneficiaries’ share of costs for the first 60 days of Medicare-covered inpatient hospital care in a benefit period. In 2021, beneficiaries must pay a coinsurance amount of $371 per day for the 61st through 90th day of a hospitalization in a benefit period and $742 per day for lifetime reserve days. For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care services in a benefit period will be $185.00 in 2021.
For more information or questions contact Bob Garrison at 940-382-4700 or email email@example.com