What 2021 Means For Your Medicare PaymentsFor those of you updating your budgets for 2021, we’re providing an overview of the price increases you can expect for Medicare in 2021. Fortunately for most, costs aren’t growing much in the new year, but it’s important to keep on top of changes and how they affect your finances.
Changes to Medicare Part A for 2021If you paid sufficient Medicare taxes and you’re over 65, you’ll most likely qualify for Part A of the Medicare program without paying a premium. If not, and you don’t qualify for Plan A in some other way, you’ll need to pay a premium. Here’s an overview of the changes provided on the Medicare.gov site from 2020 to 20211. Part A Deductible – In 2021, you’ll pay a:
- $1,484 deductible for each benefit period (up $76 from 2020)
- Days 1-60: $0 coinsurance for each benefit period
- Days 61-90: $371 coinsurance per day of each benefit period (up $19 from 2020)
- Days 91 and beyond: $742 coinsurance per each “lifetime reserve day” after day 90 for each benefit period (up $36 from 2020)
- Beyond lifetime reserve days: all costs
Changes to Medicare Part B for 2021Plan B saw more variables than Plan A, but overall, costs remained relatively the same. Here’s a breakdown from the Medicare.gov site.1 Plan B Deductible – The standard deductible for Plan B is increasing $5 in 2021 to $203. After your deductible is met, you’ll typically pay 20% of the Medicare-approved amount for most doctor services. Plan B Premium – Most people pay the standard Part B premium amount, but if you make more (as reported on your tax returns from 2 years prior to your benefits), you’ll pay the standard premium and an Income Related Monthly Adjustment Amount (IRMAA).
Part C and Part D Medicare Changes for 2021If you’ve opted for Part C and D Medicare coverage, changes to your premiums will vary based on the type of plan you chose. For more information, visit the links below.
Part C premium – Compare costs for specific Part C plans.
Part D premium – Compare costs for specific Part D plans.The Medicare program provides a lot of choices and can be hard to understand. If you have questions about the many options provided or you need help with how these costs fit into your budget, talk to your Tax Professional. They can help you navigate the complexities, minimize unnecessary costs, and get you connected with their Avantax Planning Partners financial planning consultant if you need additional help with wealth management.