Medicare Changes in 2021 You Should Know About

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:

  • $1,408 deductible for each benefit period
  • Days 1-60: $0 coinsurance for each benefit period
  • Days 61-90: $352 coinsurance per day of each benefit period
  • Days 91 and beyond: $704 coinsurance per each “lifetime reserve day” after day 90 for each benefit period (up to 60 days over your lifetime)
  • Beyond lifetime reserve days: all costs
You pay:

  • $1,484 deductible for each benefit period
  • Days 1-60: $0 coinsurance for each benefit period
  • Days 61-90: $371 coinsurance per day of each benefit period
  • Days 91 and beyond: $742 coinsurance per each “lifetime reserve day” after day 90 for each benefit period (up to 60 days over your lifetime)
  • Beyond lifetime reserve days: all costs
Skilled nursing facility stay You pay:

You pay:

  • Days 1–20: $0 for each benefit period.
  • Days 21–100: $185.50 coinsurance per day of each benefit period.
  • Days 101 and beyond: all costs.
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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