November 16, 2020
The Centers for Medicare and Medicaid Services (CMS) have announced the 2021 increases in premiums, deductibles, and coinsurance amounts for the Medicare Part A and Medicare Part B programs. The increase in costs associated with Medicare are adjusted in accordance with the recent 1.3 percent Cost-of-Living Adjustment (COLA) announced by the Social Security Administration (SSA) for 2021.
Selecting Medicare coverage can be overwhelming, as there are multiple “Parts” and plans available. It’s important to get educated in order to choose coverage that best suits one’s unique healthcare and financial needs and avoid paying for coverage that will likely not be needed.
Simply put, Medicare Part A is often referred to as “Hospital Insurance” and generally covers inpatient hospital stays, care at skilled nursing facilities, hospice care, and home health care. Medicare Part B, or “Medical Insurance,” typically covers outpatient services, as well as durable medical equipment (DME), laboratory tests, and vaccinations.
In 2021, the standard monthly premium for Medicare Part B enrollees will be $148.50—an increase of $3.90 from $144.60 in 2020. This is a noticeable difference from last year, when the Part B premium increased by $9.10/month. For many Medicare recipients, there is no Medicare Part A monthly premium cost.
Medicare’s Open Enrollment period is now underway, and will end on December 7th. If you qualify for Medicare, this is an important opportunity for you to review your coverage options and select a Plan that best suits your needs. Please note that even if you already have Medicare coverage, your health/financial status may have changed, or there may be new Plans available in your area that are a better fit for you going forward.
If you have questions about this topic or would like assistance selecting a Medicare Plan, please feel free to reach out to us; you may also contact our Medicare Advocacy team at Aevo Insurance Services, or visit https://www.medicare.gov/.
Nothing in this post is intended as advice or a suggestion to elect or not elect to claim benefits of any kind, including Social Security benefits, nor is it intended as financial advice in any way. The decision to claim benefits is a personal one that is contingent upon each individual’s unique circumstances.