On November 6, 2020, the Centers for Medicare & Medicaid Services (CMS) released the 2021 premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs.
Medicare Part B covers physician services, outpatient hospital services, certain home health services, durable medical equipment, and certain other medical and health services not covered by Medicare Part A. The Medicare Part B monthly premiums and the annual deductible will be higher than the 2020 amounts. The standard monthly premium for Medicare Part B enrollees will be $148.50 for 2021, an increase of $3.90 from $144.60 in 2020.
The annual deductible for all Medicare Part B beneficiaries will be $203 in 2021, an increase of $5 from the annual deductible of $198 in 2020. Part B monthly premiums are based on a person’s income. The income-related monthly adjustment amounts affect roughly 7% of people with Medicare Part B. The 2021 Part B total premiums for high-income beneficiaries are shown below:
|Beneficiaries who file indv. tax returns with income||Beneficiaries who file joint tax returns with income||Income-related monthly adjustment amount||
Total monthly premium amount
|Less than or equal to $88,000||Less than or equal to $176,000||$0.00||$148.50|
|Greater than $88,000 and less than or equal to $111,000||Greater than $176,000 and less than or equal to $222,000||$59.40||$207.90|
|Greater than $111,000 and less than or equal to $138,000||Greater than $222,000 and less than or equal to $276,000||$148.50||$297.00|
|Greater than $138,000 and less than or equal to $165,000||Greater than $276,000 and less than or equal to $330,000||$237.60||$386.10|
|Greater than $165,000 and less than $500,000||Greater than $330,000 and less than $750,000||$326.70||$475.20|
|Greater than or equal to $500,000||Greater than or equal to $750,000||$356.40||$504.90|
The Medicare Part A inpatient hospital deductible that beneficiaries will pay when admitted to the hospital will be $1,484 in 2021, which is an increase of $76 from $1,408 in 2020. In 2021, beneficiaries must pay a coinsurance amount of $371 per day for the 61 st through 90 th day of a hospitalization ($352 in 2020) in a benefit period and $742 per day for lifetime reserve days ($704 in 2020).
|Part A Deductible & Coinsurance Amounts|
|Type of Cost Sharing||2020||2021|
|Inpatient Hospital Deductible||$1,408.00||$1,484.00|
|Daily Coinsurance for 61st - 90th Day||$352.00||$371.00|
|Daily Coinsurance for Lifetime Reserve Days||$704.00||$742.00|
|Skilled Nursing Facility Coinsurance||$176.00||$185.50|