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