Medicare Costs in 2021 (Update)

• by Christian Worstell
• February 15, 2022
• Reviewed by John Krahnert

Medicare Part A and Part B costs generally increase each year, as they did in 2019 and again in 2020 and 2021. This includes costs for Medicare deductibles, coinsurance and premiums.

Learn more about 2021 Medicare costs and how they could affect your coverage.

If you think you might be overpaying for your coverage, using a medicare plan finder is one way to find a plan that may better suit your needs.

Medicare Part A premium

Most people do not pay a premium for Medicare Part A (hospital insurance). But those who don’t receive premium-free Part A may pay up to $471 per month in 2021, depending on how many years they have worked and paid Medicare taxes.

The 2021 Part A premium is $259 per month if you paid Medicare taxes for 30-39 business quarters, which is 7.5 years to nearly 10 years, and $471 per month if you worked fewer than 30 quarters, which is fewer than 7.5 years.

Medicare Part A deductible

The 2021 Medicare Part A deductible is $1,484 per benefit period.

You must meet the Part A deductible in each benefit period before Medicare Part A begins to pay for your inpatient care costs. A benefit period begins on the first day you are admitted for inpatient care, and it ends when you have been discharged and haven’t received inpatient care for 60 consecutive days.

You could potentially have more than one Part A benefit period in a single calendar year.

Medicare Part A coinsurance

The Part A coinsurance is the amount of money you may have to pay out-of-pocket for extended inpatient stays at hospitals and other long-term care facilities, after you reach your Part A deductible for that benefit period.

The first 60 days of an inpatient stay are covered in full for each benefit period after you hit your Part A deductible. If your inpatient hospital stay lasts longer than 60 days, you may have to pay the following Part A coinsurance costs:

• 2021 Part A coinsurance for days 61-90: $371 per day
• 2021 Part A coinsurance for days 91 and beyond: $742 per day for each lifetime reserve day
• After you use all of your 60 lifetime reserve days, you are responsible for all costs

Note: your Part A coinsurance costs and Part A deductible reset with each new benefit period. As mentioned above, you could potentially face more than one Part A benefit period in a calendar year.

Medicare Part B premium

The standard monthly premium for Medicare Part B (medical insurance) is $148.50 per month in 2021.

People with higher incomes could potentially pay more for their Part B premiums. This higher amount is called the Income-Related Monthly Adjusted Amount, or IRMAA.

The following chart outlines what you might pay for your Part B premium in 2021, based on your reported income taxes from 2019.

Medicare Part B deductible

The 2021 Part B deductible is $203 annually.

You must meet this deductible before your Medicare Part B coverage starts paying its share.

Medicare Part B coinsurance

After you meet your Part B deductible, you are typically responsible for paying a 20 percent coinsurance for the Medicare-approved amount for your covered services.

Part B coinsurance can be applied to covered services like doctor's office visits, outpatient therapy, durable medical equipment and other Part B-covered services.

Medicare Supplement Insurance costs in 2021

Medicare Supplement Insurance plans (also called Medigap) can help cover some of the out-of-pocket Medicare costs detailed above, such as deductibles, coinsurance and copayments.

• In 2021, the high-deductible Medigap Plan F and high-deductible Plan G options have a deductible of $2,370 per year. The high deductible Plan F is not available to new beneficiaries who became eligible for Medicare on or after January 1, 2020. 
• The 2021 Medigap Plan K out-of-pocket spending limit is $6,220 per year.
• The 2021 Medigap Plan L out-of-pocket spending limit is $3,110 per year.

Medigap plans are sold by private insurance companies, and plan costs will vary from one provider to the next. Some Medigap plan costs, however, are standardized.

Medicare Supplement plans can help cover a number of 2021 Medicare costs, such as:

• Medicare Part A coinsurance and hospital costs
• Medicare Part B coinsurance or copayments
• The first three pints of blood needed for a blood transfusion
• Part A hospice care coinsurance or copayments
• Coinsurance for skilled nursing facility care
• Part A deductible
• Part B deductible
• Part B excess charges
• Foreign emergency care costs (not typically covered by Original Medicare)

Medicare Advantage plans (Medicare Part C)

Medicare Advantage plans (Medicare Part C) provide the same basic coverage as Original Medicare (Medicare Part A and Part B).

Many Medicare Advantage plans may offer additional benefits that aren’t covered by Original Medicare, such as prescription drug coverage and dental, vision and hearing benefits. Medicare Advantage plans are sold by private insurance companies, so costs, benefits and availability can vary.

The average premium for a Medicare Advantage plan with prescription drug coverage (called an MA-PD plan) is be $33.57 per month in 2021.¹

Medicare Part D

Medicare Part D plans provide coverage for prescription medication. The average monthly premium for a Medicare Part D plan is $41.64 per month in 2021.¹

Part D plans often include annual deductibles as well as coinsurance or copayment requirements. Some Part D plans offer $0 deductibles.

Are you looking for Medicare prescription drug coverage? You can learn more about Part D plans in your area and enroll in a Medicare prescription drug plan online in as little as 10 minutes when you visit MyRxPlans.com.²

Get help paying for 2021 Medicare costs

A number of programs are available to help qualified Medicare beneficiaries pay for their Medicare costs.

One such program is called Medicare Extra Help. The Extra Help program helps qualified beneficiaries pay for their prescription drugs.

Medicare beneficiaries with limited financial resources may also qualify for 2021 Medicare Savings Programs.

Read additional medicare costs guides to learn more about Medicare costs and how they will affect you.

Find $0 premium 2021 Medicare Advantage plans

Depending on where you live, you may be able to find Medicare Advantage plans in your area that offer $0 premiums.

To learn more and to compare plans, call to speak with a licensed insurance agent today.

Or call 1-800-557-6059 1-800-557-6059 TTY Users: 711 to speak with a licensed insurance agent. We accept calls 24/7!

¹ MedicareAdvantage.com's The Best States for Medicare in 2021 report. (Oct. 27, 2020).

² 10-minute claim is based solely on the time to complete the e-application if you have your Medicare card and other pertinent information available when you apply. The time to shop for plans, compare rates, and estimate drug costs is not factored into the claim. Application time could be longer. Actual time to enroll will depend on the consumer and their plan comparison needs.

About the author

Christian Worstell is a senior Medicare and health insurance writer with MedicareAdvantage.com. He is also a licensed health insurance agent. Christian is well-known in the insurance industry for the thousands of educational articles he’s written, helping Americans better understand their health insurance and Medicare coverage.

Christian’s work as a Medicare expert has appeared in several top-tier and trade news outlets including Forbes, MarketWatch, WebMD and Yahoo! Finance.

Christian has written hundreds of articles for MedicareAvantage.com that teach Medicare beneficiaries the best practices for navigating Medicare. His articles are read by thousands of older Americans each month. By better understanding their health care coverage, readers may hopefully learn how to limit their out-of-pocket Medicare spending and access quality medical care.

Christian’s passion for his role stems from his desire to make a difference in the senior community. He strongly believes that the more beneficiaries know about their Medicare coverage, the better their overall health and wellness is as a result.

A current resident of Raleigh, Christian is a graduate of Shippensburg University with a bachelor’s degree in journalism.

If you’re a member of the media looking to connect with Christian, please don’t hesitate to email our public relations team at Mike@tzhealthmedia.com.

 

 

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