2021 Changes to Medicare
The new year is right around the corner and it’s bringing some changes to Medicare! On November 6th, CMS released several updates that we can expect with Medicare in 2021. One of these being rate increases. Below, you will see all the latest rates for next year and plan letters that are going away.
Medicare Part A:
Deductible
Medicare Part A has a deductible for $1,484, which is a significant increase of $76 from the previous year. As you may already know, the Part A deductible covers inpatient hospital beneficiaries’ share of cost for the beginning 60 days.
Days 1-60: $0 coinsurance
Days 61-90: $371 in coinsurance per day
Days 91 and beyond: $742 coinsurance per each "lifetime reserve day" after day 90 for every period (up to 60 days over your lifetime)
Beyond lifetime reserve days: all costs
Premium
The majority of people do not pay a Part A premium because they've worked 40 or more quarters. If you have paid Medicare taxes for less than 30 quarters, the premium will be $471. If you have paid between 30-30 quarters, you can expect a $259 premium.
Medicare Part B:
Deductible
The 2021 annual deductible increased $4, totaling $303 for the new year.
Premium
Medicare Part B monthly premium will be increased $3.90 from 2020, resulting in a $148.50 premium for 2021.
Plans F & C:
On January 1, 2021, Plans C & F are officially unavailable to purchase for newly eligible enrollees. *This does not impact those who currently have these plans.
How can MWG Senior Services help?
If you would like to talk with someone about enrolling in Medicare Parts A or B, be sure to call MWG Senior Services at (877) 759-5760 or email seniorservices@morganwhite.com. Our team of advisors are ready to walk with you on the road to retirement!