The Centers for Medicare & Medicaid Services (CMS) recently released the 2021 costs of medicare Parts A and B premiums and will unfortunately be rising in 2021. This causes a major problem for seniors who are on a fixed income, making it more stressful for retirees. The standard monthly Part B premium is currently at $144.60, however in 2021, it will increase to $148.50. That $3.90 bump is a 2.7% increase which is more than double the most recent Social Security cost-of-living adjustment (COLA).
Not only are Part B premiums rising, but also the annual deductible for Part B is going up from $198 to $203 in 2021. Part A deductible per hospital benefit period is increasing as well from $1,408 to $1,484.
Although the increase in Part B premiums is only $3.90, we need to remember that seniors were hit with the news of a stingy Social Security COLA going into 2021, and may have already been worse off financially because of the coronavirus pandemic.
Here is the updated Part B premiums by income:
| If your yearly income in 2019 (for what you pay in 2021) was | You pay each month (in 2021) | ||
| File individual tax return | File joint tax return | File married & separate tax return | |
| $88,000 or less | $176,000 or less | $88,000 or less | $148.50 |
| above $88,000 up to $111,000 | above $176,000 up to $222,000 | Not applicable | $207.90 |
| above $111,000 up to $138,000 | above $222,000 up to $276,000 | Not applicable | $297.00 |
| above $138,000 up to $165,000 | above $276,000 up to $330,000 | Not applicable | $386.10 |
| above $165,000 and less than $500,000 | above $330,000 and less than $750,000 | above $88,000 and less than $412,000 | $475.20 |
| $500,000 or above | $750,000 and above | $412,000 and above | $504.90 |
Here is the updated Part D premiums by income:
| If your yearly income in 2019 (for what you pay in 2021) was | You pay each month (in 2021) | ||
| File individual tax return | File joint tax return | File married & separate tax return | |
| $88,000 or less | $176,000 or less | $88,000 or less | your plan premium |
| above $88,000 up to $111,000 | above $176,000 up to $222,000 | not applicable | $12.30 + your plan premium |
| above $111,000 up to $138,000 | above $222,000 up to $276,000 | not applicable | $31.80 + your plan premium |
| above $138,000 up to $165,000 | above $276,000 up to $330,000 | not applicable | $51.20 + your plan premium |
| above $165,000 and less than $500,000 | above $330,000 and less than $750,000 | above $88,000 and less than $412,000 | $70.70 + your plan premium |
| $500,000 or above | $750,000 and above | $412,000 and above | $77.10 + your plan premium |
If you would like further clarification on this information, you can always contact one of our licensed agents as we’re here to find the best plan to fit your needs. Contact us today >>