2020 has been a difficult year for the healthcare industry. With the rise of the COVID-19, as well as skyrocketing prescription drug cases, the costs for Medicare in 2021 are projected to rise.
Many have made estimates as to how much the premiums and deductibles for Medicare parts A, B, and Medigap will change—none are guaranteed, but here is an idea of the 2021 costs for Medicare.
Medicare Part A Costs in 2021
The projected Medicare Part A premium for 2021 is $263/month, up from $252/month in 2020. Depending on your work history, this premium could be $478/month in 2021, up from $458/month in 2020.
However, only 1% of Americans have to pay this premium—the rest are exempt based on their or their spouse’s work history (at least 40 quarters of work history).
You must, regardless of work history, still pay your yearly deductible. In 2020, this fee was $1,408. This fee consistently increases, and will likely be $1,484 in 2021.
With Medicare Part A, you will be covered for 60 days of hospitalization each year, with a $0 coinsurance fee. For days 61-90, however, you will incur an additional fee, projected to be $371 in 2021. Then, for days 91 and beyond per benefit period, this fee will be $742 in 2021 per day, a $38 increase.
Medicare Part B Costs for 2021
Unlike Part A, all Medicare beneficiaries must pay their Part B premiums. In 2021, the standard monthly premium for Medicare Part B enrollees is projected to be $148.50, versus the $144.60 premium in 2020.
In 2020, the annual deductible for Part B was $198. This fee must be paid per benefit period (i.e. per year), and is projected to increase by $5 in 2021, making it $203. Depending on your income, this cost could potentially be higher.
Medicare Supplement Costs for 2021
Medicare Supplements, or Medigap, are optional, additional plans that cover Part A and B costs. There are, in 2020, 12 different plans:
- Plan A
- Plan B
- Plan C
- Plan D
- Plan F
- Plan G
- Plan K
- Plan L
- Plan M
- Plan N
- High-Deductible Plan F
- High-Deductible Plan G
One of the biggest changes happening to Medicare in 2021 is the removal of Medigap plans C and F (and high-deductible plan F). Those enrolled in any of these plans prior to 2020 may keep their coverage, but people who were first eligible for Medicare after January 1st, 2020 will no longer be able to purchase these policies.
Worried About Rising Medicare Costs? Call Meservey & Associates
The rise of Medicare costs is very scary for a lot of people—how can you be sure you can still afford your current coverage?
With free Medicare advice from Meservey & Associates, you can be confident in your Medicare coverage. When you’re ready, call 478-254-4209 to speak with an insurance agent.
