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Medicare Rate Increases in 2021: What You May Be Able to Expect

Christian Worstell by Christian Worstell    |    Published Jun 30, 2020    |    Reviewed by John Krahnert

Medicare rate increases are typically announced late in the calendar year, so any Medicare cost changes effective for 2021 won’t be announced until late in 2020.

In this guide, we take a look at Medicare rate increases from 2019 to 2020 to shed some light on what we might be able to expect for 2021 Medicare costs.

We also outline some 2021 Medicare cost projections based on the annual Medicare Trustees Report.

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2021 Medicare Part B Cost Projections

Based on reporting from the Centers for Medicare & Medicaid Services (CMS), the projected 2021 Medicare Part B premium is $148.50 per month.1

It’s important to note that this figure only represents an estimate of 2021 Part B premiums. Actual 2021 premiums will be determined in the fall of 2020.

The standard Part B premium in 2020 is $144.60 per month. That’s an increase of $9.10 from the 2019 Part B premium.

While most people pay the standard Part B premium, other beneficiaries may pay more if they had a higher reported income two years prior (2018).

The table below shows the additional amount these beneficiaries will pay in 2020 — called the Income-Related Monthly Adjustment Amount, or IRMAA — based on their reported 2018 income.

2018 Individual tax return 2018 Joint tax return 2018 Married and separate tax return 2020 Part B premium
$87,000 or less $174,000 or less $87,000 or less $144.60
More than $87,000 and up to $109,000 More than $174,000 and up to $218,000 N/A $202.40
More than $109,000 up to $136,000 More than $218,000 up to $272,000 N/A $289.20
More than $136,000 up to $163,000 More than $272,000 up to $326,000 N/A $376.00
More than $163,000 up to $500,000 More than $326,000 up to $750,000 More than $87,000 up to $413,000 $462.70
More $500,000 More than $750,000 More than $413,000 $491.60

2020 Medicare Part A Cost Increases

Most people receive premium-free Part A.

In 2020, people who are required to pay a Part A premium must pay either $252 per month or $458 per month, depending on how long they or their spouse worked and paid Medicare taxes.

Those are increases of $12 and $21 per month respectively from 2019 Part A premiums.

The Part A deductible in 2020 is $1,408 per benefit period, which is an increase of $44 from the 2019 Part A deductible.

The Part A deductible amount may increase each year, and it will likely be higher in 2021.

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Will My Medicare Supplement Insurance Premiums Go Up?

Medicare Supplement Insurance, or Medigap, provides coverage for certain Medicare Part A and Part B out-of-pocket expenses like deductibles, coinsurance and copayments.

The average a Medigap plan premium in 2018 was $125.93 per month.2

This cost figure is weighted, which means that some Medigap plans in some areas may offer lower premiums than what is listed above. Some 2020 Medigap plan premiums may also be higher.

Each type of Medigap plan offers a different combination of standardized benefits. Plans with fewer benefits may offer lower premiums.

Other factors such as age, gender, smoking status, health and where you live can also affect Medigap plan rates.

Medigap premiums can increase over time due to inflation and other factors, so you can typically expect Medigap plan premiums to be higher in 2021 than they are currently in 2020.

Compare 2020 Medicare Supplement Insurance Plan Costs

A licensed insurance agent can help you find Medigap plans that are available where you live. You can find out the types of benefits each available plan may offer, the insurance companies that sell them and the premium costs you can expect to pay.

You can request an online plan comparison for free, with no obligation to enroll.


Find Medigap plans in your area.

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Or call --ms-tfn-- to speak with a licensed insurance agent.


1 Medicare: Part B Premiums. (Updated April 4, 2019). EveryCRSReport.com. Retrieved from www.everycrsreport.com/reports/R40082.html.

2 TZ Insurance Solutions LLC internal sales data, 2019. This data is based on the Medicare Supplement Insurance policies TZ Insurance Solutions LLC has sold. It is not a comprehensive national average of all available Medicare Supplement Insurance plan premiums.


Christian Worstell is a health care and policy writer for MedicareSupplement.com. He has written hundreds of articles helping people better understand their Medicare coverage options.

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