2021 Medicare Part A and Part B Premiums and Deductibles

The Centers for Medicare & Medicaid Services have released the Medicare costs for 2022. Please see our most recent article, 2022 Medicare Part A and Part B Premiums and Deductibles, for current facts and figures.

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 Sharing20202021
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$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 ReturnFile Joint Tax ReturnMonthly Adjustment2021 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$297.70
$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 SpouseMonthly Adjustment2021 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
File Separate Tax Return from SpouseMonthly Adjustment2021 Part B Monthly Premium
$88,000 or Less$0.00$148.50
$88,001 to $412,000$326.70$504.90
$412,00 or More$356.40$504.90
● ● ●

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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