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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 A
Medicare Part A covers inpatient hospital, skilled nursing facility, and some home health care services. The Part A deductible covers your share of costs for the first 60 days of Medicare-covered inpatient hospital care in a benefit period.
Medicare Part A Cost Sharing
|Inpatient Hospital Deductible (60 day benefit period)||$1,408||$1,484
|Daily coinsurance for 61st-90th Day||$352||$371|
|Daily coinsurance for lifetime reserve days||$704||$742|
|Skilled Nursing Facility coinsurance after 20 days||$176||$185.50|
Medicare Part B
|Standard Part B premium||$144.60||$148.50|
|Part B deductible||$198||$203 (*)|
|Cost sharing after Part B deductible||20%||20%|
(*) Dan’s clients enrolled in Medicare Supplement Plans G, N or High Deductible F / G are responsible for paying the $203 Part B deductible in 2021.
What are High Deductible Medicare Supplement Plans?
With a High Deductible plan, Medicare pays its share and you pay what a Plan F or G would normally pay up to the limit of $2,370, a $30 increase from the $2340 limit in 2020.
- Medicare pays its share of Part A and Part B claims
- You pay the Part A deductible ($1,484 in 2021)
- You pay the Part B deductible ($203 in 2021)
- You pay the Part B 20% co-share
… once your total of these Part A and B payments reaches $2,370 (2021) your Plan F/G pays its 100% share for the remainder of the year.
Compare the math:
- Plan F: $250 monthly premium(*) x 12 equals $3,000 annual cost.
- HDF: $60 monthly premium(*) x 12 equals $720. Worst case annual cost share capped at $2,370. Together $3,090 annual cost.
(*) Premiums per NY State DFS 11/21/2020