MEDICARE PREMIUMS AND DEDUCTIBLES RAISE SLIGHTLY IN 2021

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Premiums and deductibles for 2021 Medicare Parts A and B will marginally increase, according to the Centers for Medicare & Medicaid Services (CMS).

New rates for 2021 include:

  • The Medicare Part B standard premium will be $148.50, an increase of $3.90.

  • The Part B annual deductible will be $203, an increase of $5.

  • The Medicare Part A inpatient hospital deductible will be $1,484, an increase of $76.

  • Medicare Part A coinsurance will be $371 per day for days 61-90, an increase of $19.

The Part B premiums and deductible reflect the provisions of the Continuing Appropriations Act, 2021 and Other Extensions Act (H.R. 8337).

According to CMS, the average 2021 premiums for Medicare Advantage plans are expected to decline 34.2 percent from 2017 while plan choices, benefits, and enrollment continue to increase. The Medicare Advantage average monthly premium will be the lowest in fourteen years (since 2007). Premiums and deductibles for Medicare Advantage and Medicare Part D Prescription Drug plans are already finalized and are unaffected by this announcement.

The Medicare Part A inpatient hospital deductible that beneficiaries will pay when admitted to the hospital will be $1,484 in 2021, an increase of $76 from $1,408 in 2020. 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 61stthrough 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).

Our agents at Apron Agencies can help you review all of your Medicare choices in plan and supplements. We will take the time to make sure you understand what insurance you have and how well you will be covered in the event of a claim.

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