Facing a complex Medicare system with costs that change each year can feel overwhelming. Understanding these changes and knowing what to expect can help you prepare for changes in 2021.
Here are some simple explanations of what to expect for Medicare costs in 2021, as well as a few ways you can get help paying for your care.
Facing a complex Medicare system with costs that change each year can feel overwhelming. Understanding these changes and knowing what to expect can help you prepare for changes in 2021.
Here are some simple explanations of what to expect for Medicare costs in 2021, as well as a few ways you can get help paying for your care.
Why do Medicare costs increase in 2021?
The Centers for Medicare & Medicaid Services (CMS) attributed much of the increased costs for Medicare Part B to the rising cost of prescription drugs and the increase in physicians prescribing these drugs.
However, for the increased cost in Medicare parts A and B overall, there is no single cause. Medicare is a part of the Social Security Administration, and it’s adjusted yearly along with other elements of Social Security.
Medicare parts A and B will likely increase in 2021; however, it’s worth noting that most people with Medicare don’t pay a premium for their Medicare Part A. They’ve worked enough quarters prior to retirement that those costs are covered.
In addition to adjusting the cost of Medicare premiums and deductibles, the Social Security Administration also increases benefits with the cost of living adjustment (COLA). In 2021, the COLA is 1.3 percent.
This means that for 2021, many people with Social Security and Medicare may be able to cover the Medicare cost increase with their Social Security benefits increase depending on what the 2021 Medicare rates are.
How much does Medicare Part A cost in 2021?
Medicare Part A covers healthcare costs like inpatient hospital visits, skilled nursing facilities, and home healthcare, among other needs.
Here are the hospital and skilled nursing facility costs you need to know for 2021:
| Part A costs | 2021 rates |
| deductible per benefit period | $1,484 |
| hospital coinsurance days 1–60 | $0 |
| hospital coinsurance days 61–90 | $371 |
| skilled nursing facility coinsurance days 1–20 | $0 |
| skilled nursing facility coinsurance days 21–100 | $185.50 |
| skilled nursing facility coinsurance day 101+ | all costs |
How much does Medicare Part B cost in 2021?
Medicare Part B works in tandem with Part A to ensure your healthcare is covered when it comes to durable medical equipment or outpatient care.
Here are the Medicare Part B costs for 2021:
| Part B costs | 2021 rates |
| standard monthly premium | $148.50 |
| annual deductible | $203 |
| coinsurance | 20% of Medicare-approved amount |
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