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CMS Announced Your 2021 Medicare Parts A and B Costs

CMS Announced Your 2021 Medicare Parts A and B Costs

The Centers for Medicare & Medicaid Services (CMS) officially announced how much you'll pay for Medicare Parts A and B in 2021.

All costs when up slightly, but not by much.

Read the full CMS Fact Sheet

Medicare Part B Premium and Deductible

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.

In 2020, you're likely paying $144.60 per month for your Medicare Part B premium. For those over a certain income threshold, you pay more.

In 2021, your Part B premium is increasing to $148.50, a $3.90 increase.

Similarly, your Part B deductible is increasing to $203, a $5 increase from this year's $198 deductible. This deductible has no real impact on our clients with a Medicare Supplement Plan F, as the deductible is covered under this plan.

Medicare Part A Deductible

Medicare Part A covers inpatient hospital, skilled nursing facility, and some home health care services.

The Part A deductible beneficiaries pay when admitted to the hospital will be $1,484 in 2021, an increase of $76 from $1,408 in 2020. For our clients with Medicare Supplements Plans F, G, or N, you do not pay this deductible – your plan covers it.

Cost-sharing under Plan A has also increased slightly as shown in this chart:

About 99 percent of Medicare beneficiaries do not have a Part A premium since they have at least 40 quarters of Medicare-covered employment. For the 1% of folks that do pay the Part A premium, it has increased slightly.

Conclusion

Overall, we're pretty pleased with this announcement!

While costs have increased slightly, they remain steady. We will continue to keep you informed on Medicare changes, and if you have any questions, give us a call at 217-423-8000.

Your Guide to Medicare Parts A & B

Understanding your Medicare options is important, because making a decision without the facts can cost you money. See what Medicare, Medigap, and you – pay for.

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Your Guide to Medicare Parts A & B

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