Medicare is a great health insurance program for those that are eligible, but it’s important to remember that Medicare does not pay all the costs associated with healthcare services. In fact, generally speaking it only pays for 80% of all medical services be it a hospital admission, or visit to your primary care physician. You could be leaving a tremendous financial liability if you don’t have additional coverage be it a Medicare Advantage plan or in my humble opinion a much more comprehensive coverage like Medicare Supplemental insurance AKA Medigap.
2021 Medicare Part B Premium
Regardless if you have Medicare Advantage or Medicare Supplement, you’ll be responsible for the monthly Part B premium. Most people receive Part A benefits with no monthly premium required.
Thankfully only a small increase for the Medicare Part B premium in 2021.
Medicare Part B Premium 2021 – $148.50 per month.
2021 Medicare Part B Deductible
After Original Medicare picks up the 80% of approved services, then you are responsible to pay the other 20%. Hopefully you have a Medigap policy like Plan G then your only out of pocket expense is the Part B deductible. In 2021 there is a small increase and this Part D deductible in 2021 will be $203 for the year.
IRMAA – Income Related Medicare Adjustment Amount
If you are a higher income earner, most likely you will pay higher for both Part B premium and Part D Premiums.
The Income Related Monthly Adjustment Amount (IRMAA) has been increased for 2021.
They give a little and they take a little. For those paying for Medicare Part A or Part B premiums you’ll also see an increase for 2021. Most folks will get Part A for free, and most folks will pay the standard Part B monthly premium. That base premium will increase for Part B of Medicare from $144.60 in 2020 up to $148.50 in 2021.
Call us if you have questions?
Remember even though the annual enrollment period for Medicare Advantage plans and Medicare Prescription drug plans ends on December 7th 2020, you may still have an opportunity to change your plan beginning in 2021. Medicare Supplement insurance can be applied for year round and do not apply to the annual enrollment period. In many cases these applications would require medical underwriting to get approval of your Med Supp policy.
Cost of Living increase for 2021
Almost seems like a wash every year. In 2021 Social Security beneficiaries will get a 1.3% Cost of Living Adjustment. If you are on Medicare now, a notice from Social Security Administration will be mailed to you in December, 2o2o or log on to your mymedicare.gov account to view details.