Medicare premiums, deductibles, and coinsurance amounts change annually. Here's a look at some of the costs applicable in 2021 for those enrolled in Original Medicare Part A and Part B.
Medicare Part B premiums
According to the Centers for Medicare & Medicaid Services (CMS), most people with Medicare who receive Social Security benefits will pay the standard monthly Part B premium of $148.50 in 2021.
People with higher incomes may pay more than the standard premium. Suppose your modified adjusted gross income (MAGI) reported on your federal income tax return from two years ago (2019) is above a certain amount. In that case, you'll pay the standard premium amount and an Income Related Monthly Adjustment Amount (IRMAA), which is an extra charge added to your premium, as shown in the following table.
Other Medicare costs
The following out-of-pocket costs for Original Medicare Part A and Part B apply in 2021:
· Part A deductible for inpatient hospitalization: $1,484 per benefit period
· Part A premium for those who need to buy coverage: up to $471 per month (most people don't pay a premium for Medicare Part A)
· Part A coinsurance: $371 per day for days 61 through 90, and $742 per "lifetime reserve day" after day 90 (up to a 60-day lifetime maximum)
· Part A skilled nursing facility coinsurance: $185.50 for days 21 through 100 (for each benefit period)
· Part B annual deductible: $203
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To the extent that this material concerns tax matters, it is not intended or written to be used and cannot be used by a taxpayer to avoid penalties imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her circumstances.
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