[This page is best viewed in landscape mode]
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
2020 | 2021 | |
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
2020 | 2021 | |
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
One reply on “Medicare 2021 Part A and Part B: Premium and Deductible Changes”
The 5.4% increase on the Medicare Part A deductible is pretty material. I believe the case mix adjustment from COVID-19 is partially to blame.
Thanks for sharing!
Max