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Medicare changes in 2021 include things like new benefits, cost changes, and more. Since Medicare changes annually, it can be hard to keep up. Lucky for you, we have all the details.
What Changes are Coming to Medicare in 2021
How Much Will Medicare Cost in 2021
Medicare costs can vary from person to person. For example, those with higher incomes will pay more for Part B, this is the Part B Income Related Monthly Adjustment Amount. Considering how much Medicare has gone up in the past years, the 2021 increases are pretty low. We’ll go over the parts of Medicare and the cost increases in the information below.
What Will Part A Cost
Medicare Part A is free for most people. But, those that buy into Medicare could pay $471. And, those that paid 30-39 quarters could pay $259 per month.
But, the deductible still lingers as an expense. Mostly every year, the Part A deductible increases. In 2021, the deductible will be $1,484 for the year. That makes the increase only about $76 more than last year.
The inpatient hospital benefit period costs rose a little in 2021. For days 1-60 beneficiaries will continue to pay $0 each day during that benefit period. Now, days 61-90 grew to $371 each day. Finally, for days 91 and beyond you’ll pay $742 coinsurance.
Now, Skilled Nursing Facility copayments also saw an increase; days 21-100 will now cost $185.50 per day.
What Will Part B Cost
The Part B premium is increasing to $148.50 monthly, which is only $3.90 more per month than before. Then, the Part B deductible is going up to $203 which is only a $5 increase for the year. As you can see from the numbers, Medicare cost increases are reasonable.
What Does Medicare Advantage Look Like for 2021
Medicare Advantage plan premium costs are going down to an estimated $21 on average across the United States. Part C plans will be at the lowest premium price since 2007. Beneficiaries can also expect to see more plan options, even for those in rural areas. More options and lower costs sound like a huge win for beneficiaries opting for Part C insurance. In 2021, CMS is giving Advantage plans the flexibility to include telehealth providers in specific areas.
Some of these specialties include:
Before 2021, End-Stage Renal Disease patients could only enroll in Medicare Advantage plans under limited circumstances. The new rule implements changes made by the 21st Century Cures Act. It gives all End-Stage Renal Disease beneficiaries a choice to enroll in a plan with the effective date of January 1, 2021.
In previous years, Medicare Advantage plans didn’t include coverage for Long-Term Care. Now, some Medicare Advantage plans will be offering coverage for Long-Term Care.
What is the Cost of Part D in 2021?
Premiums for Part D in 2021 average to about $41 a month. The initial deductible in 2021 is $445 for the year. Then, the initial coverage limit increased to $4,130. Also, the Out of Pocket threshold increased to $6,550.
During the Catastrophic Coverage phase, beneficiaries will pay a minimum of $3.70 for generics and $9.20 for all other drugs. Or, 5% whichever is higher.
While a lot of costs are going up in 2021 pertaining to Part D, insulin costs decrease.
What is the 2021 High Deductible for Medigap?
What is the 2021 Maximum Out of Pocket?
For Medicare Advantage, Maximum Out of Pocket limits can reach up to $7,550 for in-network services. Now, for out of network, you could have a MOOP of $11,300.
How to Get Help with Your Medicare Coverage in 2021
Medicare is changing in 2021. If you’re new to Medicare, or an existing beneficiary, know that our team is here for you. Whether you’re interested in Medigap or simply have questions about Medicare, we can help.
Saving time and money has never been easier! Give us a call at the number above or fill out an online rate form to see the rates in your area now. Make sure to check out what factors impact your Medigap rates.