Financial Writer and Certified Educator in Personal Finance
Rachel Christian is a writer and researcher for RetireGuide. She covers annuities, Medicare, life insurance and other important retirement topics. Rachel is a member of the Association for Financial Counseling & Planning Education.
Content created by RetireGuide and sponsored by our partners.
RetireGuide’s mission is to provide seniors with resources that will help them reach important financial decisions that affect their retirement. Our goal is to arm our readers with knowledge that will lead to a healthy and financially sound retirement.
We’re dedicated to providing thoroughly researched Medicare information that guides you toward making the best possible health decisions for you and your family.
RetireGuide LLC has partnerships with Senior Market Sales (SMS) and GoHealth.
Our partners are able to be reached through the phone numbers and/or forms provided on our website.
The content and tools created by RetireGuide adhere to strict Medicare and editorial guidelines to ensure quality and transparency.
While the experts from our partners are available to help you navigate various Medicare plans, RetireGuide retains complete editorial control over the information it publishes.
We operate independently from our partners, which allows the award-winning RetireGuide team to provide you with unbiased information.
Visitors can trust our inflexibility regarding our editorial autonomy. We do not allow our partnership to influence RetireGuide’s editorial content whatsoever.
Medicare beneficiaries will spend $46.80 more per year on Part B premiums in 2021 and face higher deductibles, according to a November 6 news release from the Centers for Medicare & Medicaid Services, or CMS.
The new prices go into effect Jan. 1, 2021.
2021 Medicare Price Changes
The standard Medicare Part B premium will cost $3.90 more per month, increasing from $144.60 in 2020 to $148.50 in 2021.
The yearly Medicare Part B deductible will increase $5 for all beneficiaries, from $198 in 2020 to $203 in 2021.
The Medicare Part A inpatient hospital deductible will be $76 higher, increasing from $1,408 in 2020 to $1,484 in 2021.
Part B premiums are based on a beneficiary’s income.
Roughly 7 percent of wealthy Medicare recipients are required to pay more money due to income-related monthly adjustments, according to CMS.
A single person earning more than $88,000 a year, but less than or equal to $111,000, will pay $207.90 per month in Part B premiums next year, including a $59.40 surcharge.
That’s a 2.7 percent increase from 2020, when this income bracket paid $202.40 a month, including a $57.80 surcharge.
The wealthiest beneficiaries — single people with incomes of $500,000 or more and couples with incomes of $750,000 or more — will pay $504.90 a month per person in Part B premiums next year, including a $356.40 surcharge.
In contrast, the Part B surcharge for the wealthiest Medicare recipients was $347 in 2020, or a monthly total of $491.60.
Earlier this year, the Medicare Trustees and Congressional Budget Office projected substantial Part B premium increases for 2021 as a result of additional program spending and other costs related to COVID-19.
According to AARP, the increase may have been as high as $25 to $50 more a month.
But on October 1, Congress acted by passing a last-minute short-term funding bill.
The new law included a measure to cap any Medicare Part B premium increases to 25 percent of what it otherwise would be for 2021.
“We do know the increase would have been much steeper without this ‘fix’ that was included in the bill approved by Congress,” Tricia Neuman, senior vice president of the Henry J. Kaiser Family Foundation, told RetireGuide in October.
Medicare Price Increases and Social Security Adjustments
These new numbers aren’t surprising — Medicare premiums and deductibles have increased several times in the last decade.
From 2011 to 2020, the standard Part B premium rose 25 percent.
The latest Medicare Part B premium increase of 2.7 percent is modest compared to the previous year’s 6.7 percent increase of $9.10 a month.
Calling this number connects you to one of our trusted partners.
If you're interested in help navigating your options, a representative will provide you with a free, no-obligation consultation.
Our partners are committed to excellent customer service. They can match you with a qualified professional for your unique objectives.
We/Our Partners do not offer every plan available in your area. Any information provided is limited to those plans offered in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.