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 |