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 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 | $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 | $297.70 |
| $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 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 |
| 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 | $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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