Cost of Medicare

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).

Medicare Part C and Part D

The 2021 expenses for Medicare Part C and Part D will typically vary, depending on the plan you choose and who the insurance provider is. However, the Part C premium can be as low as $0. Some Medicare Advantage Plans may also pay part or all of your Part B premium, but if it does not, you will have to pay the Part B premium. Part C plans also will typically have a maximum out-of-pocket limit, which ranges from $3,900-$7,550 depending on the plan you select.

For Part D, you will pay a monthly premium that can be as low as $7 or as high as $100, depending on the plan you choose. If you have a higher income, you may pay a higher premium. Some plans also have no deductible, but other Part D plans can have deductibles as high as $445. The cost of your prescriptions will usually depend on what tier the plan has listed them in. Prescriptions in a lower tier will cost less than those in a higher or specialty tier.

If you are looking to learn more about your Medicare options in the Reno, NV, area, contact Eldridge Insurance Agency.