Every November, Medicare announces new premiums for the following year, so we’ve been anticipating this announcement release.
In this blog post, I want to go over Medicare’s recent announcement of the premium increases for 2021.
As you may know, the standard amount for Medicare Part B premium that everyone pays when you’re on Medicare, more or less, is $144.60 a month.
For 2021, it’s price slightly increased to $148.50.
If you’re currently drawing Social Security, i’s important to remember that you have a rule called “Hold Harmless.” Hold Harmless means that your Medicare Part B premium can only increase as much as Social Security check increases.
That means, if you’re on Social Security, I don’t expect you to pay that whole $148.50.
However, if you are joining Medicare for the first time or not on Social Security, I expect you to pay that full $148.50.
Secondly, the Medicare Part B annual deductible also increased slightly. In 2020, it was $198, and now, in 2021, it’s going to be $203.
With this said, this also means that people who have higher incomes will be paying more as well.
The good news is, we are seeing decreases on Medicare Part D drug plans for 2021. And we do not see any significant changes to Medicare Advantage and Medicare supplement plans. So we don’t expect huge changes for people who are currently on Medicare.
Again, the most significant changes you’re going to see on Medicare for 2021 will be the Medicare Part B premiums.
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