Health Law Daily CMS makes slight increases to Part A, Part B premiums, deductibles for 2021
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Monday, November 9, 2020

CMS makes slight increases to Part A, Part B premiums, deductibles for 2021

By Susan L. Smith, JD, MA

For 2021, the Medicare Part A inpatient hospital deductible is $1,484 and coinsurance for the 61st day through the 90th day of an inpatient hospital stay is $371. In 2021, the Part B standard monthly premium is $148.50 and the deductible for all Medicare beneficiaries is $203.

The Medicare Part A inpatient hospital deductible, which covers the first 60 days of a covered inpatient hospital stay, will increase $76 from $1,408 in 2020 to $1,484 in 2021. Inpatient hospital coinsurance for the 61st day through the 90th day of an inpatient hospital stay will increase to $371 in 2021 from $352 in 2020, while daily coinsurance for lifetime reserve days will increase from $704 in 2020 to $742 in 2021. The standard monthly premium for Medicare Part B beneficiaries will increase $3.90 from $144.60 in 2020 to $148.50 in 2021. The annual Part B deductible for all Medicare beneficiaries will be $203 in 2021, which is an increase of $5 from the 2020 deductible of $198. Coinsurance for skilled nursing facilities will increase to $185.50 in 2021 from $176.00 in 2020. Details of Medicare Part A and Part B premiums and deductibles for 2021 will be published in the Federal Register on November 12, 2020.

Part A premiums for voluntary enrollees. Premiums will increase $7.00 from $252 in 2020 to $259 in 2021 for: (1) individuals age 65 and over who have less than 40 quarters of coverage; (2) certain persons with disabilities that pay a monthly premium to enroll in Medicare Part A; and (3) individuals who had at least 30 quarters of coverage or were married to someone with at least 30 quarter of coverage that buy into Part A at a reduced monthly premium rate. Uninsured aged individuals who have less than 30 quarters of coverage and certain individuals with disabilities who have exhausted other entitlement will pay the full premium of $471 in 2021, which is an increase of $13 from 2020.

Part B income-related monthly premium amounts. For 2021, beneficiaries who file individual tax returns with income of less than or equal to $88,000 and beneficiaries who file joint income tax returns with income tax less than or equal to $176,000, will not have a monthly adjustment, the monthly premium amount will be $148.50. Part B premiums for high-income beneficiaries filing individual tax returns or joint tax returns will include a monthly adjustment as follows:

  • For beneficiaries who file individual tax returns with income greater than $88,000 and less than or equal to $111,000 and beneficiaries who file joint tax returns with income greater than $176,000 and less than or equal to $222,000, the monthly adjustment amount is $59.40, the total monthly premium amount is $207.90.
  • For beneficiaries who file individual tax returns with income greater than $111,000 and less than or equal to $138,000 and beneficiaries who file joint tax returns with income greater than $222,000 and less than or equal to $276,000, the monthly adjustment amount is $148.50, the total monthly premium amount is $297.00.
  • For beneficiaries who file individual tax returns with income greater than $138,000 and less than or equal to $165,000 and beneficiaries who file joint tax returns with income greater than $276,000 and less than or equal to $330,00, the monthly adjustment amount is $237.60, the total monthly premium amount is $386.10.
  • For beneficiaries who file individual tax returns with income greater than $165,000 and less than $500,000 and beneficiaries who file joint tax returns with income less than or equal to 330,000 and less than $750,000, the monthly adjustment amount is $326.70, the total monthly premium amount is $475.20.
  • For beneficiaries who file individual tax returns with income of greater than or equal to $500,000 and beneficiaries who file joint income tax returns with income tax greater than or equal to $750,000, the monthly adjustment amount is $356.40, the monthly payment is $504.90.

Beneficiaries who are married and lived with their spouses at any time during the year but filed separate tax returns whose income was greater than $88,000 but less than $412,000 pay an additional monthly adjustment amount of $326.70. Those whose income is greater than or equal to $412,00 will pay and additional $356.40.

MainStory: TopStory CMSNews PartANews PartBNews FedTracker HealthCare

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