What are Medicare Changes in 2021?

What are Medicare Changes in 2019?

The post below describes 2021 Medicare changes for Premiums and Costs for Medicare Part A, Part B as well as for Part D.

Article Contents

Medicare Part A Cost 2021
Medicare Part B Premium and Cost 2021
Medicare Part D Cost 2021
Medicare Part D Premium 2021
US Government Sources

Medicare Part A and Part B Costs
Medicare Part A Cost 2021

Changes for Medicare Part A Cost in 2021 include:

  • Part A premium
    • For individuals with 40 or more quarters of Medicare-covered employment: $0 per month ($0 in 2020)
    • For individuals with 30-39 quarters of Medicare-covered employment: $259 per month ($252 in 2020)
    • For individuals with less than 30 quarters of Medicare-covered employment: $471 per month ($458 in 2020)
  • Hospital Inpatient Stay
    • Deductible for days 1-60 of each benefit period: $1,484 (1,408 in 2020)
    • Coinsurance per day for days 1-60 of each benefit period: $0 ($0 in 2020)
    • Coinsurance per day for days 61-90 of each benefit period: $371 ($352 in 2020)
    • For days 91 and beyond: $742 per lifetime reserved day ($704 in 2020)
  • Mental Health Inpatient Stay
    • Deductible for days 1-60 of each benefit period: $1,484 (1,408 in 2020)
    • Coinsurance per day for days 1-60 of each benefit period: $0 ($0 in 2020)
    • Coinsurance per day for days 61-90 of each benefit period: $371 ($352 in 2020)
    • For days 91 and beyond: $742 per lifetime reserved day ($704 in 2020)
  • Skilled Nursing Facility Stay
    • $0 for the first 20 days of each benefit period ($0 in 2020)
    • $185.50 per day for days 21-100 of each benefit period ($176 in 2020)
    • Days 101 and beyond: all costs (all costs in 2020).

For more information, please visit Medicare costs at a glance.

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Medicare Part B Premium and Cost 2021

Changes for Medicare Part B Premium and Cost in 2021 include:

  • Part B annual deductible:
    • $203 ($198 in 2020)
  • Part B premium
    • In 2021, the standard Part B premium amount will be $148.50 (or higher depending on your income) ($144.60 in 2020)
  • Part B premium for higher income based on your yearly income in 2019

    • If modified adjusted gross income is $88,000 or less for individual tax returns or $176,000 or less for joint tax returns: $148.50 per month
    • If modified adjusted gross income is $88,001 to $111,000 for individual tax returns or $176,001 to $222,000 for joint tax returns: $207.90 per month
    • If modified adjusted gross income is $111,001 up to $138,000 for individual tax returns or $222,001 up to $276,000 for joint tax returns: $297.00 per month
    • If modified adjusted gross income is $138,001 up to $165,000 for individual tax returns or $276,001 up to $330,000 for joint tax returns: $386.10 per month
    • If modified adjusted gross income is $165,001 up to $500,000 for individual tax returns or $330,001 up to $750,000 for joint tax returns: $475.20 per month
    • If modified adjusted gross income is above $500,000 for individual tax returns or above $750,000 for joint tax returns: $504.90 per month

Visit Medicare costs at a glance more information.

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Medicare Part D Cost
Medicare Part D Cost 2021

Changes for Medicare Part D Cost in 2021 for include:

  • Yearly Deductible
    • You are responsible for the first $445 of drug costs ($435 in 2020)
  • Initial Coverage
    • The initial coverage (when you typically pay 25% of drug costs) starts after you’ve satisfied the yearly deductible and continues until the total drug costs (paid by you and your insurance company) reach $4,130 ($4,020 in 2020).
  • Coverage Gap
    • Once the total cost of prescriptions has reached $4,130, you are responsible for ALL drug costs until you’ve spent $6,550 out-of-pocket ($6,350 in 2020). During the gap period, you’ll pay the following amounts for your prescriptions: 25% from the price of brand drugs (25% in 2020) and 25% from the price of generic drugs (25% in 2020).
  • Catastrophic Coverage
    • Catastrophic coverage starts once you’ve spent $6,550 out-of-pocket ($6,350 in 2020). From then until the end of the calendar year, you are paying the greater of either a 5% coinsurance (the same as in 2020) or a small copayment: $3.70 for generic drugs ($3.60 in 2020) or $9.20 for brand name drugs ($8.95 in 2020).
  • Low Income Subsidy (LIS)
    • Maximum copayment for people qualified for LIS programs is $3.70 for generic or preferred drugs ($3.60 in 2020) or $9.20 for brand name drugs ($8.95 in 2020).

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Medicare Changes: Medicare Part D Premium 2021

Medicare Part D premium in 2021 is based on your filing status and yearly income in 2019 as follows:

  • If modified adjusted gross income is $88,000 or less for individual tax returns or $176,000 or less for joint tax returns, then you pay your plan premium.
  • If modified adjusted gross income is $88,001 to $111,000 for individual tax returns or $176,001 to $222,000 for joint tax returns, then you pay your plan premium + $12.30.
  • If modified adjusted gross income is $111,001 up to $138,000 for individual tax returns or $222,001 up to $276,000 for joint tax returns, then you pay your plan premium + $31.80.
  • If modified adjusted gross income is $138,001 up to $165,000 for individual tax returns or $276,001 up to $330,000 for joint tax returns, then you pay your plan premium + $51.20.
  • If modified adjusted gross income is $165,001 up to $500,000 for individual tax returns or $330,001 up to $750,000 for joint tax returns, then you pay your plan premium + $70.70.
  • If modified adjusted gross income is above $500,000 for individual tax returns or above $750,000 for joint tax returns, then you pay your plan premium + $77.10.

Visit Medicare costs at a glance more information.

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US Government Sources

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