Every year, changes come to Medicare. In 2021, Medicare has several new benefits and adjustments to speak of. As a beneficiary, it’s important to keep up with these developments. Below, we’ll provide the information you need to know about how Medicare is different this year including how much Medicare costs in 2021.
What is the Medicare Deductible for 2021
The annual Part B deductible has increased to $203 which is $5 more than last year. The standard Part B premium is increasing to $148.50 monthly, which is $3.90 more per month than before.
Part A is free for most people. The Part A deductible increases annually. In 2021, the deductible will be $1,484 for the year. That makes the increase $76 more than last year. But, those who buy into Medicare could pay $471 each month in premiums. And, those who paid 30-39 quarters could pay $259 per month.
The inpatient hospital benefit period costs rose slightly in 2021. For days 1-60 beneficiaries will continue to pay $0 each day. Days 61-90 now cost $371 per day. Finally, for days 91 and beyond, you’ll pay $742 coinsurance for each day. Now, skilled nursing facility copayments also saw an increase; days 21-100 cost $185.50 per day.
New Medicare Benefits for 2021
There are several new Medicare benefits this year and not all of them are cost-related. In 2021, we see new benefits for those with end-stage renal disease (ESRD) as well as long-term care patients. Also, telemedicine is growing in availability. Before we go over all the specifics on new Medicare benefits, let’s take a look at the cost of Medicare in 2021.
What Does Medicare Advantage Look Like for 2021
Medicare Advantage plan premium costs decreased 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 are good news to beneficiaries opting for Part C insurance. In 2021, CMS is giving Advantage plans the flexibility to include telehealth in specific areas.
Some of the specialties telehealth provides include:
Before 2021, ESRD 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 ESRD 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 about $41 a month. The initial deductible in 2021 is $445 for the year. 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, out of network, you could have a MOOP of $11,300.
How to Get Help with Your Medicare Coverage in 2021
We know that there are a lot of changes to Medicare for 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.
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