On November 6, 2020, the Centers for Medicare & Medicaid Services (CMS) released the 2021 premiums, deductibles and coinsurance amounts for the Medicare Part A and B programs. Below is a summary of some of the key cost components:

Part A Premium

99% of Medicare beneficiaries do not have to pay a premium for Part A because they paid Medicare taxes for at least 40 quarters or they were married to someone who did. For the 1% of individuals who must pay a premium for Part A, the monthly premium is as follows:

• Less than 30 quarters of paid Medicare taxes: $471 per month premium, an increase of $13 from 2020
• 30-39 quarters of paid Medicare taxes: $259 per month premium, an increase of $7 from 2020

Part A Deductible and Cost Sharing

Part A has hospital and skilled nursing facility deductible and out-of-pocket expenses. Those expenses are as follows in 2021:

• Inpatient deductible: $1,484, an increase of $76 from 2020
• Daily cost for hospitalization days 61-90: $371, an increase of $19 from 2020
• Daily hospitalization lifetime reserve days: $742, an increase of $38 from 2020
• Daily skilled nursing facility cost days 21-100: $185.50, an increase of $9.50 from 2020

Part B Premium

The standard Part B premium will increase to $148.50 per month, an increase of $3.90 from 2020.

Approximately 7% of Medicare beneficiaries pay a higher Part B premium due to their income. The monthly premium increases for individual tax filers earning more than $88,000 per year and married couples who file joint tax returns earning more than $176,000 per year. The monthly premium can be as high as $504.90 per month depending on actual income.

Part B Deductible

The annual deductible under Part B will increase to $203, an increase of $5 from 2020.