What You Will Pay For Medicare In 2021
2021 will start with a few changes to Medicare that both new enrollees and existing beneficiaries will need to know about. In order to get the most from your plan, you need to know your out-of-pocket costs, which will vary depending on the type of plan you have. Here is a breakdown of what you can expect in 2021.
If you are new to Medicare or you have been a beneficiary for a while, it’s always good freshen up your knowledge.
Visit FreeSeniorQuotes.com and read up a little so that you are family with all your options.
Medicare Part B Premium 2021
If you make more then what the average person does, you’ll probably also pay more for Part B. This will be based on your adjusted gross income from two years earlier. In 2020, beneficiaries with 2018 AGI of more than $87,000 ($174,000 for married couples filing jointly) paid $202.40 to $491.60 per month for Part B. Surcharges in 2021 for people with 2019 AGIs of more than $88,000 (more than $176,000 for married couples filing jointly) will rise slightly to between $207.90 and $504.90 per month. This usually only affects around 7% of all Medicare beneficiaries.
Part B Deductible Increase
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. What kept the increases in the Part B premiums and the deductible in check this year is in part of the short-term budget bill in October, Congress capped the increases. Yet Medicare spending is expected to grow in 2021 as people seek care they may have delayed due to Covid-19, CMS says.
Part D Changes for 2021
The Center for Medicare & Medicaid Services announced premium and cost-sharing information for Medicare pART d prescription drug plans for 2021. The average premium for Part D, which helps you cover drug costs, will be $30.50 a month in 2021.
Among other program changes, more than 1,600 Medicare Advantage and Part D drug plans will offer insulin for a monthly copy of $35 or less under the new Part D Senior Savings Model which was pushed by President Donald J. Trump.
Medicare beneficiaries with high drug costs may run into a coverage gap (also called the “donut hole“). For 2021, the gap begins when the total your plan has paid reaches $4,130, up from $4,020 in 2020. At that point, you’ll receive a 75% discount on brand-name and generic drugs. Drug manufacturers will pick up 70% of the tab, insurers will pay 5% and you’ll pay 25%.
Once your out-of-pocket spending hits $6,550 (including whatever drug manufacturers paid on your behalf in the coverage gap), Medicare picks up most of the cost. You will only have to pay a small co-pay until the end of the year.