Each year, Medicare changes the premiums and cost-sharing (deductibles, copays, and coinsurance) you pay for Medicare Part A and Part B. In most years, the changes are not drastic, and the changes for 2021 are relatively moderate. The chart below shows the changes for 2021.
| 2020 & 2021 Part A & Part B costs at a glance | ||
| 2020 | 2021 | |
| Part A premium – Most people don’t pay a monthly premium for Part A | If you paid Medicare taxes for less than 30 quarters, the standard Part A premium is $458. If you paid Medicare taxes for 30-39 quarters, the standard Part A premium is $252. | If you paid Medicare taxes for less than 30 quarters, the standard Part A premium is $471. If you paid Medicare taxes for 30-39 quarters, the standard Part A premium is $259. |
| Part A hospital inpatient deductible and coinsurance | You pay:
|
You pay:
|
| Skilled nursing facility stay | You pay:
|
You pay:
|
| Part B premium | The standard Part B premium amount is $144.60 (or higher, depending on your income). | The standard Part B premium amount is $148.50 (or higher, depending on your income). |
| Part B deductible and coinsurance | $198 Deductible. After your deductible is met, you typically pay 20% of the Medicare-approved amount for most doctor services (including most doctor services while you’re a hospital inpatient), outpatient therapy, and durable medical equipment (DME) | $203 Deductible. After your deductible is met, you typically pay 20% of the Medicare-approved amount for most doctor services (including most doctor services while you’re a hospital inpatient), outpatient therapy, and durable medical equipment (DME) |
In most cases, Medicare beneficiaries will pay the standard Part B premium. However, you may have to pay more than the standard Part B premium based on your income level Medicare calls this adjustment. the Medicare Income-Related Monthly Adjustment Amount (IRMAA). This income adjustment can increase your Part B and Part D (Prescription drug benefits) premiums. The table below shows the IRMAA adjusted premiums for 2021.
| If your yearly income in 2018 (for what you pay in 2020) or in 2019 (for what you pay in 2021) was | For Part B, you pay each month (in 2020) | For Part B, you pay each month (in 2021) | For Part D, you pay each month (in 2020) | For Part D, you pay each month (in 2021) | ||
| File individual tax return | File joint tax return | File married & separate tax return | ||||
| $87,000 or less | $174,000 or less | $87,000 or less | $144.60 | $148.50 | your plan premium | your plan premium |
| above $87,000 up to $109,000 | above $174,000 up to $218,000 | Not applicable | $202.40 | $207.90 | $12.20 + your plan premium | $12.30 + your plan premium |
| above $109,000 up to $136,000 | above $218,000 up to $272,000 | Not applicable | $289.20 | $297.00 | $31.50 + your plan premium | $31.80 + your plan premium |
| above $136,000 up to $163,000 | above $272,000 up to $326,000 | Not applicable | $376.00 | $386.10 | $50.70 + your plan premium | $51.20 + your plan premium |
| above $163,000 and less than $500,000 | above $326,000 and less than $750,000 | above $87,000 and less than $413,000 | $462.70 | $475.20 | $70.00 + your plan premium | $70.70 + your plan premium |
| $500,000 or above | $750,000 and above | $413,000 and above | $491.60 | $504.90 | $76.40 + your plan premium | $77.10 + your plan premium |
The data above is from the CMS Medicare Costs at a Glance website updated with 2021 costs.
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