Does the Price of Medicare Coverage Change Every Year?
In short, yes. Just as you would expect car or home insurance premiums and costs to change on an annual basis, our health and medical coverage are also subject to annual price hikes, with 2021 set for more price increases and higher premiums.
That said, for those who are considering a Medicare Advantage plan purchased through a private health insurance provider, or for those who already benefit from a Medicare Advantage plan, estimations indicate that the price of your coverage will decrease in 2021.
What Am I Paying For?
If you are already covered by a Medicare package or plan, you will be aware of the costs you have to pay and what they are designed to do. Depending on which plan you signed up for, your Medicare coverage is subject to various copayments, deductibles, and premiums – with Part A being the only package that can be enjoyed premium-free, dependent on a basic set of conditions. For those who meet the requirements for premium-free Part A coverage, they can receive the most basic hospital charge cover for no additional cost. For those who do not, every level of Medicare coverage will be subject to some kind of premium.
Where Does the Payment Come From?
If you receive Social Security benefits, any increase in the premium for your Medicare coverage will be taken from your monthly benefits package. If you do not, the payment will be sent to you in an invoice on a monthly basis.
What Do the 2021 Payments Look Like?
In essence, there is virtually no package that escapes some form of hike come 2021.
Part B Medicare coverage is a must if you want to benefit from a Medicare Advantage plan, and most beneficiaries choose to sign up for Part B as soon as they become eligible in order to avoid future penalties. Part B is the section of Medicare coverage that looks after medical bills outside of the hospital and is especially necessary for those who regularly require outpatient medical attention. In 2021, the cost of the Part B premium will be $148.50 – an increase of $3.90 per month compared to the 2020 cost.
Another of the most common Medicare packages is Part D, which looks after medical prescriptions and drugs. In terms of the payments required from Part D beneficiaries, the main payment is the Part D deductible which is the amount the beneficiary must pay before their coverage kicks in. In 2021, the cost for the Part D deductible will be $445 – an increase of $10 when compared with 2020.
And then we have the Part A copayments, which are designed to provide a limited amount of cover for extended stays in the hospital providing the beneficiary also pays their share. As part of the Part A coverage, Medicare will cover all expenses for your first 20 days in the hospital – beyond that, the beneficiary is subject to copayment terms which in 2021 will sit at $185.50; an increase of $9.50 compared with 2020.
For more information on the 2021 Medicare costs and price increases, and what they might mean for you, get in touch with our team at Bobby Brock Insurance.