2020 Part B Deductible / 2021 Part B Deductible for Medicare
The 2021 changes for Medicare were released this month. The 2021 Part B Deductible is just one of the increases you will see.
The Centers for Medicare & Medicaid Services (CMS) released their updates for the coming year in a press release. Let’s look at what is changing.
Part B Deductible for 2020
- In 2021, the Medicare Part B Deductible will be $203.
- In contrast, the deductible was 198 for 2020.
- This is an increase of $5.
Part B Premiums for 2021
- In 2021, the Medicare Part B Monthly Premium will be $148.50
- In 2020, the Medicare Part B Monthly Premium was $144.60.
- The premium was 135.50 for 2019.
Why are the Part B Deductible and Premiums Increasing in 2021?
The CMS adjusts the deductibles yearly, in accordance to the Social Security Act. Moreover, the increase reflects national healthcare trends.
In addition, the CMS has stated that the rate hike is mostly due to the increased use and cost of physician- administered drugs. Part B covers Physician-administered drugs.
What Part B Covers
As a reminder, Medicare Part B covers:
- Physician and Provider Services
- Outpatient Services
- Home Health Services
- Durable Medical Equipment
- Other non-hospital health services
Who Pays the Part B Deductible?
- If you have Original Medicare only, you will pay the Part B Deductible.
- In addition, if you have a Medicare Supplement that does not cover the Part B Deductible, you will pay it.
- Some Medicare Advantage Plans have you cover the Part B deductible. This will be stated in your Summary of Benefits. However, 2020 plans have already been released, so deductibles are already set for the new year and will not be affected by this increase.
As of 2020, new beneficiaries to Medicare will not be able to choose a Medicare Supplement Letter Plan that covers the Part B Deductible. For example, Plan F covers the deductible, so seniors new to Medicare in 2020 and beyond will not be able to pick Plan F. Seniors that are already on these letter plans can keep them. Read more about this topic here.
Will the Changes Affect Part C or Part D costs?
No, these deductible and premium increases will not affect Part D Drug Plans or Part C Medicare Advantage Plans. The premium costs and the deductibles have already been set for the coming year. As a result, they are not affected.
According to the CMS press release,
As previously announced, as a result of CMS actions to drive competition, on average for 2020, Medicare Advantage premiums are expected to decline by 23 percent from 2018, and will be the lowest in the last thirteen years while plan choices, benefits and enrollment continue to increase. Premiums and deductibles for Medicare Advantage and Medicare Part D Prescription Drug plans are already finalized and are unaffected by this announcement.CMS Press Release, Nov 2019
That is extra good news for those on Medicare Advantage Plans that have their deductibles satisfied with their plan. Some Medicare Advantage plans have a zero dollar deductible for their whole plan. These plans bundle Parts A & B and have the option of including the Part B Original Medicare deductible or covering it themselves.
Income Adjustments to Part B Premiums
There are no income related adjustments to the Part B Medicare Deductible. However, there are income related adjustments to your Part B Premiums.
- First, the standard 2020 Part B premium of $144.60 applies to those with income less than or equal to $87,000 a year ($174,000 joint income).
- Second, if you claim income between $87,000 and $109,000 ($174k-$218k joint), you will pay $202.40 a month.
- Third, if you claim income between $109,000 and $136,000 ($218k – $272k joint), you pay $289.20.
- Fourth, if you claim income between $136,000 and $163,000 ($272k – $326k joint), you pay $376.00.
- Fifth, if you claim income between $163,000 and $500,000 ($326k – $750k joint), you pay $462.70.
- Finally, if you have income greather than or equal to $500,000 ($750k+ joint), then you pay 491.60.
- Click here if you need to see a table for premiums for spouses that file separate returns.
Are there Changes to Part A?
Yes, there are also changes to Medicare Part A. If you have a Medicare Supplement Plan, depending on which Letter plan you have, your supplement will continue to pick up these costs.
If you have a Medicare Advantage Plan, your plans benefits will still apply to you instead of the Original Medicare benefit structure. 2020 plans have already been released, so you will not be affected by these changes.
However, if you have Original Medicare only, you will want to take a look at the Part A changes that affect you here.
If you would like to learn more about Medicare we Suggest the following articles:
This Tool Kit answers your questions regarding Medicare Information, Medicare Supplements, Medicare Advantage, and Prescription Drug Plans. Discover what products are right for you and how to sign-up for them.
Read about basic Medicare Information. What is Medicare Part A? Part B? Get answers to your basic Medicare questions.
What is a Medicare Supplement and how do I choose the best one for me?
What is Medicare Advantage and when is it, and what plans are, best for my situation?
When do I need a drug plan and what do I need to look for in a good plan?
What plan type is best for my situation and what do I need to consider when choosing.
Answers to your questions and answers to questions you should be asking.