We’re in the midst of the annual Medicare Open Enrollment Period, but we still don’t know what Medicare costs will be in 2021. We do know, however, that Congress has limited the amount Medicare Part B premiums can increase. As a result, Medicare costs should not go up a lot in 2021.
The standard Part B premium likely will increase. The standard premium was projected to increase to $153.30 from $144.60 a month. But, Congressional legislation likely will limit the increase to less than $2.50 a month.
However, if your annual income is $88,000 or more, your Part B premium is likely to increase even more. The Part B deductible will also likely increase several dollars from $198.
The Part A premium, deductible and coinsurance will also be higher. The deductible to be paid at the start of a Part A hospital benefit period is projected to be $1,452 in 2021, up from $1,408. Supplemental coverage you get through the private insurance market or through a former employer or Medicaid, generally pays some or all of this cost.
If you’re in a Medicare Advantage plan, a private insurance plan that offers Medicare benefits, you are still responsible for paying the Medicare Part B premium. On top of that, if you need a lot of costly care, your out-of-pocket costs could be as high as $7,550 in 2021, for in-network care alone. In addition, you will have a deductible and copays for your drugs.
The standard Part D prescription drug plan will have a deductible of $445 in 2021. You will need to spend $6,550 before you receive catastrophic coverage. You will be responsible for 25 percent of the cost of your drugs until then. Once you reach the catastrophic coverage level, you will be liable for no more than 5 percent of the cost of your drugs.
If you have diabetes and need insulin, some plans will offer insulin with a maximum $35 out-of-pocket monthly cost. However, the premiums for these plans are likely to be higher.
If you are new to Medicare, you will have the choice of a range of Medigap plans, supplemental coverage that fills gaps in Medicare. But, the two most popular plans, C and F, will no longer be available. Instead, you will have a choice of D and G. Unfortunately, you may be locked into a Medicare Advantage plan if you are currently enrolled in one. Your ability to buy supplemental coverage if you want to switch to traditional Medicare may be restricted, depending upon the state you live in and your health status.
Here’s more from Just Care:
- Social Security benefits will barely rise in 2021
- Four things to think about when choosing a plan to fill gaps in Medicare, a “Medigap” or Medicare supplemental insurance plan
- Four things to think about when choosing between traditional Medicare and Medicare Advantage plans
- Traditional Medicare offers better home care benefits than Medicare Advantage
- Medicare ratings of Medicare Advantage plans a farce
are you sure the irmaa income brackets will be $88,000/$176,000?
Thanks for asking. That is what Medicare is reporting. https://www.medicare.gov/your-medicare-costs/part-b-costs