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CMS releases 2021 Medicare Part A and B values

CMS releases 2021 Medicare Part A and B values

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CMS has announced the 2021 Medicare Part A and B premium, deductible, and coinsurance amounts. As in prior years, there are increases in these amounts. The 2021 Medicare Part D parameters were released earlier this year. (See our June 18, 2020 FYI.)

Download this FYI Alert as a printable PDF

Medicare Part A

On November 6, the Centers for Medicare & Medicaid Services (CMS) released the Medicare Part A premium and the deductible and coinsurance amounts for 2021. It also provided a fact sheet with additional information.

Premiums

Almost all Medicare beneficiaries do not pay a Part A premium because they have at least 40 quarters of Medicare-covered employment. For those individuals who pay a premium, the Medicare Part A premiums for the 12-month period beginning on January 1, 2021 are as follows:

Premium type

2021

2020

Change

Premium to purchase coverage for individuals not otherwise eligible for Medicare Part A and certain disabled individuals

$471

$458

2.8%

Premium for certain individuals entitled to a reduced monthly premium (who had at least 30 quarters or were married to someone with at least 30 quarters of Medicare-covered employment)

$259

$252

2.8%

Deductible and coinsurance amounts

The Medicare Part A deductible and coinsurance amounts for the 12-month period beginning on January 1, 2021 are as follows:

Deductible and coinsurance type

2021

2020

Change

Deductible for up to 60 days of Medicare-covered inpatient hospital care

$1,484

$1,408

5.4%

Daily coinsurance for 61st through 90th day of hospitalization

$371

$352

5.4%

Daily coinsurance for lifetime reserve days

$742

$704

5.4%

Daily coinsurance for 21st through the 100th day of extended care services in skilled nursing facility

$185.50

$176.00

5.4%

Medicare Part B

CMS also released a notice that sets out the Medicare Part B monthly premium rates and annual deductible amounts for 2021.

The standard monthly premiums for Medicare Part B for 2021 are as follows:

Premium type

2021

2020

Change

Standard monthly premium

$148.50

$144.60

2.7%

 

Some Part B enrollees benefit from a “hold harmless” provision that protects them from any increase in Part B premiums (typically deducted from social security checks) that would effectively reduce their monthly social security payments.

The following individuals are not protected by the “hold harmless” provision:

  • New Medicare enrollees in 2021
  • Higher income Medicare beneficiaries
  • Medicare beneficiaries dually eligible for Medicare and Medicaid
  • Medicare Part B enrollees not receiving social security benefits

The 2021 Medicare Part B monthly premiums based on income tax filing status and income are:

Individual filing status* Married filing jointly status*

2021 monthly premium

2020 monthly premium

Change

Income up to $88,000 Income up to $176,000

$148.50

$144.60

2.7%

$88,001 – $111,000 $176,001 – $222,000

$207.90

$202.40

2.7%

$111,001 – $138,000 $222,001 – $276,000

$297.00

$289.20

2.7%

$138,001 – $165,000 $276,001 – $330,000

$386.10

$376.00

2.7%

$165,001 – $499,999 $330,001 – $749,999

$475.20

$462.70

2.7%

$500,000 or more $750,000 or more

$504.90

$491.60

2.7%

*Income ranges for 2020 and 2021 differ

Married filing separately, lived with spouse during tax year* 2021 monthly premium 2020 monthly premium Change

Income up to $88,000

$148.50 $144.60

2.7%

$88,001 – $411,999

$475.20

$462.70

2.7%

$412,000 or more

$504.90

$491.60

2.7%

*Income ranges for 2020 and 2021 differ

Finally, the Medicare Part B annual deductible for the 12-month period beginning on January 1, 2021 is as follows:

Deductible type

2021

2020

Change

Medicare Part B

$203

$198 2.5%

Volume 43 | Issue 70

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