2020 announcements

What Will You Pay for Medicare in 2021?

December 4, 2020

Medicare premiums, deductibles, and coinsurance amounts change annually. Here’s a look at some of the costs that will apply in 2021 if you’re enrolled in Original Medicare Part A and Part B.

Medicare Part B premiums

According to the Centers for Medicare & Medicaid Services (CMS), most people with Medicare who receive Social Security benefits will pay the standard monthly Part B premium of $148.50 in 2021.

People with higher incomes may pay more than the standard premium. If your modified adjusted gross income (MAGI) as reported on your federal income tax return from two years ago (2019) is above a certain amount, you’ll pay the standard premium amount and an Income Related Monthly Adjustment Amount (IRMAA), which is an extra charge added to your premium, as shown in the following table.

You filed an individual tax return with MAGI that was: You filed a joint tax return with MAGI that was: You filed a married tax return filing separately that was: Monthly premium in 2021 including IRMAA is:

You filed an individual tax return with MAGI that was:


$88,000 or less

You filed a joint tax return with MAGI that was:


$176,000 or less

You filed a married tax return filing separately that was:


$88,000 or less

Monthly premium in 2021 including IRMAA is:


$148.50

You filed an individual tax return with MAGI that was:


Above $88,000 up to $111,000

You filed a joint tax return with MAGI that was:


Above $176,000 up to $222,000

You filed a married tax return filing separately that was:


N/A

Monthly premium in 2021 including IRMAA is:


$207.90

You filed an individual tax return with MAGI that was:


Above $111,000 up to $138,000

You filed a joint tax return with MAGI that was:


Above $222,000 up to $276,000

You filed a married tax return filing separately that was:


N/A

Monthly premium in 2021 including IRMAA is:


$297.00

You filed an individual tax return with MAGI that was:


Above $138,000 up to $165,000

You filed a joint tax return with MAGI that was:


Above $276,000 up to $330,000

You filed a married tax return filing separately that was:


N/A

Monthly premium in 2021 including IRMAA is:


$386.10

You filed an individual tax return with MAGI that was:


Above $165,000 and less than $500,000

You filed a joint tax return with MAGI that was:


Above $330,000 and less than $750,000

You filed a married tax return filing separately that was:


Above $88,000 and less than $412,000

Monthly premium in 2021 including IRMAA is:


$475.20

You filed an individual tax return with MAGI that was:


$500,000 and above

You filed a joint tax return with MAGI that was:


$750,000 and above

You filed a married tax return filing separately that was:


$412,00 and above

Monthly premium in 2021 including IRMAA is:


$540.90

 

Other Medicare costs

The following out-of-pocket costs for Original Medicare Part A and Part B apply in 2021:

  • Part A deductible for inpatient hospitalization: $1,484 per benefit period
  • Part A premium for those who need to buy coverage: up to $471 per month (most people don’t pay a premium for Medicare Part A)
  • Part A coinsurance: $371 per day for days 61 through 90, and $742 per “lifetime reserve day” after day 90 (up to a 60-day lifetime maximum)
  • Part A skilled nursing facility coinsurance: $185.50 for days 21 through 100 (for each benefit period)
  • Part B annual deductible: $203

For more information on costs and benefits related to Social Security and Medicare, visit ssa.gov and medicare.gov.

 

Important Disclosures


Valuing Your Trust

If you’re not already a valued client of Providence Wealth Advisors, we encourage you to learn more. To schedule a no cost, no obligation conversation, contact us to learn more at your convenience.