There are costs associated with having Medicare health coverage, and they’re ever-changing. Each year, the Centers for Medicare & Medicaid Services (CMS) announces the updated costs, and for the most part, they do change each year.
- Medicare Part A Costs
- Medicare Part B Costs
- Medicare Part C Costs
- Medicare Part D Costs
- Medicare Medical Savings Account (MSA) Cost
- Medicare Supplement (Medigap) Cost
- Find Out What Medicare Will Cost You
Medicare Part A Costs
For most people, Medicare Part A is $0 premium. If you’ve worked at least 40 quarters and paid Medicare taxes, you pay nothing to have the Part A hospital insurance.
For those who do have to pay for Part A, the 2020 premium is between $252-$458 per month. The 2021 premium is between $259-$471.
If you paid Medicare taxes for less than 30 quarters, the standard Part A premium is $458 in 2020 and $471 in 2021. Individuals who had at least 30 quarters of coverage or were married to someone with at least 30 quarters of coverage may buy into Part A at a reduced monthly premium rate, which is $252 in 2020 and $259 in 2021.
Medicare Part A also has a deductible as well as coinsurance:
- $1,484 deductible
- Days 1-60: $0 coinsurance for each benefit period
- Days 61-90: $371 coinsurance per day of each benefit period
- Days 91 and beyond: $742 coinsurance per each "lifetime reserve day" after day 90 for each benefit period (up to 60 days over your lifetime)
- Beyond lifetime reserve days: all costs
Medicare Part B Costs
Medicare Part B does have a premium that tends to increase a little bit every year. In 2020, the Part B premium is $144.60 per month. In 2021, the Part B premium is $148.50 per month. Here’s a quick look at the recent history of the Part B premium:
- 2021: $148.50
- 2020: $144.60
- 2019: $135.50
- 2018: $134.00
- 2017: $134.00
- 2016: $104.90
FUN FACT: In 1966, the Medicare Part B premium was $3.
2020 Income-Related Monthly Adjustment Amount (IRMAA): Single filers with modified adjusted gross income of more than $87,000, or more than $174,000 if married filing jointly, pay more for the Part B premium (from $202.40-$491.60).
2021 Income-Related Monthly Adjustment Amount (IRMAA): Single filers with modified adjusted gross income of more than $88,000, or more than $176,000 if married filing jointly, pay more for the Part B premium (from $207.90-$504.90).
This chart outlines the different adjustment tiers by income:
The 2020 Part B deductible is $198, and the 2021 Part B deductible is $203.
Once you meet your deductible, you’re responsible for about 20% of all charges. If you have a Medicare Supplement, that coverage gap will be filled and you’d responsible for much less.
Medicare Part C Costs
The costs associated with Medicare Part C, or Medicare Advantage (MA), vary wildly depending on your zip code and which particular plan you’re looking at.
Here in Macon County, the available 2021 Medicare Advantage plans have premiums that range from $0 to $165 per month. The in-network out-of-pocket maximums range from $4,700-$6,700. (That’s the most you’d be responsible for if you use in-network providers.)
Some of the available MA plans also come with drug coverage, but the amount you'd owe is highly dependent on which drugs you take and which pharmacy you use.
Note that even if you have a Medicare Advantage plan, you still must pay the Medicare Part B premium.
Medicare Part D Costs
Medicare Part D also varies depending on which drugs you take, which pharmacy you go to, and which particular plan you’re looking at.
In Decatur, we find that the most competitive plans for 2021 have a premium of $7.30-$35 per month.
The drug deductible ranges from $365-$445, and copays are generally only a few dollars for generics.
Medicare Medical Savings Account (MSA) Cost
The only Medicare MSA available in Illinois is from Lasso Healthcare. The Medicare MSA is and will always be $0 premium, but the deposit and the deductible will likely change each year.
The 2021 costs associated with the MSA options in Decatur, IL are:
- $2,000 or $3,000 deposit (money given to you for medical expenses)
- $5,000 or $8,000 deductible
This means your total member responsibility would be either $3,000 or $5,000 in 2021.
Medicare Supplement (Medigap) Cost
Medicare covers around 80% of your medical bills, which is why we recommend a Medicare Supplement. A supplement picks up the coverage gaps that Medicare leaves behind.
The monthly premium for a Medicare Supplement will depend on which plan you choose, your age, your gender, your zip code, and your tobacco usage.
For example, depending on which plan you choose, a 65-year-old female could pay anywhere from $95-$130 per month for a Plan G in 2021.
The only way to find out what a Medicare Supplement would cost you is to request a quote. This is completely free and there is no obligation to buy.
Find Out What Medicare Will Cost You
Reading all of the prices and all of the different plan options can leave you just plain confused. We created a Medicare Cost Calculator for you if you’d like to plug in your own numbers, but it’s much easier to just call our team. We will help you choose the plan that’s right for you based on your budget and risk profile.
No more guessing – find out exactly how much Medicare will cost you today.
Want to speak to a local, licensed agent? Call us at 217-423-8000 today!
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