There are minor changes to Medicare every year. Between rate changes and constantly-evolving coverage plans, you should always be ready for something new when it comes to Medicare. That said, most changes only add coverage, rather than taking away from your current benefits. Either way, you must always stay updated on the latest changes to come in your Medicare plan. Let’s take a closer look at the top 5 changes to Original Medicare in 2021.

Part A Premium

Fortunately, most people don’t have to pay the Medicare Part A premium because it is paid for through their work history. Even if you don’t qualify for premium-free Part A coverage based on the years you worked, you may be able to qualify through your spouse. In any case, if you are required to pay your Part A premium, you can expect the amount to go up in 2021. More specifically, you can expect your monthly Part A premium to increase by $7 to $13 ($259 to $471 per month), depending on your work history. 

Part A Deductible

Much like premiums, deductibles tend to go up every year as well. This is a direct result of healthcare costs rising with inflation and other market forces. As a result, Part A deductibles will increase in 2021 by approximately $76 per benefit period.

Part A Coinsurance 

When you require inpatient care for longer than 60 days, your Part A coinsurance kicks in. So, starting on day 61 of your hospital stay, you will begin paying $371 per day — an increase of $19 per day over 2020. However, this price only applies to days 61-90. Starting on day 91, you must pay $742 per day for lifetime reserve days. This is an increase of $38 over last year’s rate.

Part B Premium

While most people don’t have to worry about Part A premiums, few people can avoid paying Part B premiums. Fortunately, when compared to Part A, Part B has very low premiums. Nonetheless, these rates tend to increase a little bit every year. In 2021, the standard Part B premium for individuals making less than $88,000 per year (or $176,000 for couples) is $148.50 per month. 

Part B Deductible

In 2020, the total Part B deductible per benefit period was $198. As of 2020, that rate has increased by $5. This means that you will need to pay the full cost for your Part B covered care until you reach $204 in 2021. 

The Bottom Line

Fortunately, no drastic changes are coming in 2021 that would take away from most people’s Medicare coverage. You can expect to get the same benefits as you did in 2021, albeit for a higher price. Fortunately, Social Security is also increasing in 2021 to keep up with inflation, so if you’re retired, you shouldn’t have much trouble paying the extra costs!

If you’d like to learn more about changes in Original Medicare for 2021 or your Medicare coverage options, feel free to fill out this form or give us a call anytime. Time for 65’s partnered licensed agents are focused on giving you the information you need, with zero pressure to enroll in a plan.