2021 Medicare Part A and Part B Premiums and Deductibles

CMS recently released their numbers for 2021 premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs. Let’s see how these changes might affect your clients in the coming year.

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Part B

On November 6, 2020, CMS announced that the monthly Medicare Part B premium will be $148.50 for 2021, an increase of $3.90 from $144.60 in 2020. The annual deductible for Medicare Part B beneficiaries increased $5, from $198 in 2019 to $203 in 2021.

Part A

Less than one percent of Medicare beneficiaries have a Part A premium, and that is if they do not have at least 40 quarters of Medicare-covered employment. The Medicare Part A inpatient hospital deductible that beneficiaries will pay when admitted to the hospital for 2021 will be $1,484, which is an increase of $76 from $1,408 in 2020. Part A coinsurance amounts will increase in 2021 as shown in the table below.

2021 Part A Deductible & Coinsurance Amounts
Type of Cost Sharing 2020 2021
Inpatient Hospital Deductible $1,408 $1,484
Daily Coinsurance for Days 61 to 90 $352 $371
Daily Coinsurance for Lifetime Reserve Days $704 $742
Skilled Nursing Facility Coinsurance $176.00 $185.50

A beneficiary’s Part B monthly premium is based on their annual income. Here’s how your clients’ annual incomes will affect their Medicare Part B monthly premiums for 2021.

File Individual Tax Return File Joint Tax Return Monthly Adjustment 2021 Part B Monthly Premium
$88,000 or Less $176,000 or Less $0.00 $148.50
$88,001 to $111,000 $176,001 to $222,000 $59.40 $207.90
$111,001 to $138,000 $222,001 to $276,000 $148.50 $297.00
$138,001 to $165,000 $276,001 to $330,000 $237.60 $386.10
$165,001 to $500,000 $330,001 to $750,000 $326.70 $475.20
$500,001 or More $750,001 or More $356.40 $504.90
File Separate Tax Return from Spouse Monthly Adjustment 2021 Part B Monthly Premium
$88,000 or Less $0.00 $148.50
$88,001 to $412,000 $326.70 $475.20
$412,001 or More $356.40 $504.90

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As an insurance agent, it’s your job to be able to answer your clients’ questions around these cost increases and help them reassess their coverage if needed.

Editor’s Note: Table information is from The Centers for Medicare & Medicaid Services.

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