Cost of Medicare
It doesn’t matter if you are new to Medicare or have been enrolled for years, understanding the costs that comes with each plan is crucial in determining that the coverage you need stays within your budget. Because these costs are subjected to change each year, you should always be aware of how this could impact you.
Let’s take a look at the costs of Medicare for 2021.
Medicare Part A
People who have paid at least 40 quarters, or ten years, of Medicare taxes won’t pay Part A premiums. If you are also receiving Social Security or Railroad Retirement Benefits, you will most likely be automatically enrolled and will also not have to pay the Part A premium. However, the standard premium for Part A in 2021 is $471 for recipients who have not worked or paid up to 30 quarters of Medicare taxes. Recipients who have paid over 30 quarters and up to 39 quarters will pay a premium of $259.
Part A also has a deductible of $1,484 for each benefit period.
If you are admitted in the hospital as an inpatient, you will pay $0 for coinsurance for the first 60 days of each benefit period. If you are still admitted after 60 days, then you will pay a daily coinsurance of $371 in the benefit period. After 91 days, you will pay a $742 coinsurance per each “lifetime reserve day” for each benefit period. The lifetime reserve days equal up to 60 days over your lifetime. If you go beyond the lifetime reserve days, you will be responsible for all costs.
Medicare Part B
Part B’s standard premium in 2021 is $148.50. However, if you have a high income, you may be expected to pay more. Part B also has a yearly deductible of $203.
After the deductible is met, beneficiaries will typically be responsible for paying 20% of the Medicare-approved amount for doctor services and durable medical equipment (DME).
