With the new year come new changes to Medicare. Here is what they mean for you…
If you or your spouse has worked and paid into Medicare taxes for 40 quarters, which is 10 taxable years, you most likely will not have to pay a monthly premium for your Part A. You can also receive Part A premium free if:
- You already receive retirement benefits from Social Security or the Railroad Retirement Board
- If you are eligible to receive Social Security or Railroad Retirement benefits but have not filed for them yet
- You or your spouse has Medicare covered government employment
If you are under age 65, you can get Part A premium free if:
- You have received Social Security or Railroad disability benefits for 24 months
- If you have End Stage Renal Disease (ESRD) and meet certain requirements
If none of these circumstances apply to you and you have to pay a premium amount for your Medicare Part A your premium amounts for 2021 will be:
- If you have at least 30 quarters may buy into Part A which will be $259 a month. That is a $7 increase from 2020 premium amount
- For those who have less than 30 quarters the premium amount for Part A will be $471 a month. A $13 increase from the 2020 premium amount
Other important information to note:
The deductible amount for each benefit period is $1484
The co-insurance amounts for an in-patient hospital stay in 2021 have changed:
- For days 61-90 the co-insurance amount is $371 per day of a benefit period
- For days 91 and beyond the co-insurance amount is $742 per each lifetime reserve day for each benefit period (up to 60 days over your lifetime)
If you are in a patient in a skilled nursing facility your coinsurance for days 21-100 will be $185.50 per day for each benefit period
Medicare Part B covers physician services, outpatient hospital services, certain home health services, durable medical equipment, and certain other medical and health services not covered by Medicare Part A.
Each year the Medicare premiums, deductibles, and coinsurance rates are adjusted according to the Social Security Act.
The standard premium amount for Part B in 2021 is $148.50 a month, an increase of $3.90 from $144.60 in 2020. However this amount could be higher depending on your income.
The annual deductible for all Medicare Part B beneficiaries is $203 in 2021, an increase of $5 from the annual deductible of $198 in 2020.
Here is some information about Part B you will want to note:
Some people will automatically be signed up for Medicare Part B, however some are not. If you do not sign up for Medicare Part B when you are first eligible, you may have to pay a late enrollment penalty for as long as you have Part B. This penalty could make your premium go up 10% for each full 12 month period that you could have had Part B but did not sign up. (You may also be required to wait to sign up until the next General Enrollment Period from January 1 to March 31st to enroll in Part B, with coverage starting on July 1st of that year) Your late enrollment penalty may be waived if you meet certain conditions that allow you to sign up during a Special Enrollment Period.