This guide lists 2021 Medicare premiums, deductibles, copayments and other costs. Learn more about your Medicare coverage and costs.
There are a number of costs associated with Medicare, and it's important for all current and future beneficiaries to understand what those costs are, how they work and how you can save.
Below is a detailed explanation 2021 Medicare costs to help you make informed decisions about your coverage and care.
What Are the Medicare Premiums for 2021?
A premium is the amount of money you must pay each month to maintain your coverage.
- 2021 Medicare Part A premium
Most people do not pay a premium for their Medicare Part A hospital insurance.
In 2021, beneficiaries who have not worked and paid Medicare taxes for at least 10 years (40 quarters) could pay up to $471 for their Part A premium.
- 2021 Medicare Part B premium
Part B medical insurance carries a standard premium of $148.50 per month in 2021.
Some beneficiaries must pay a higher amount for their Part B premium, which is known as the IRMAA, or the Income-Related Monthly Adjusted Amount. The table below shows what higher income earners must pay for Part B coverage in 2021.
|2019 Individual tax return||2019 Joint tax return||2019 Married and separate tax return||2021 Part B premium|
|$88,000 or less||$176,000 or less||$88,000 or less||$148.50|
|More than $88 ,000 and up to $111,000||More than $176,000 and up to $222,000||N/A||$207.90|
|More than $111,000 up to $138,000||More than $222,000 up to $276,000||N/A||$297.00|
|More than $138,000 up to $165,000||More than $276,000 up to $330,000||N/A||$386.10|
|More than $165,000 up to $500,000||More than $330,000 up to $750,000||More than $88,000 up to $412,000||$475.20|
|More $500,000||More than $750,000||More than $412,000||$504.90|
- Medicare Advantage premiums
Medicare Advantage (Medicare Part C) is sold by private insurance companies, and the cost of 2021 premiums may vary according to location, carrier and plan.
The average (weighted) Medicare Advantage plan premium in 2020 was $36.00 per month, although some Medicare Advantage plans have $0 premiums.1
In 2020, 90% of Medicare beneficiaries had access to a Medicare Advantage Prescription Drug plan (MA-PD) with no monthly premium.2
- Medicare Part D premiums
Medicare Part D are sold by private insurance companies, and premiums may vary depending on which plan is sold in what state and by whom.
You can compare Part D plans available where you live and enroll in a Medicare prescription drug plan online when you visit MyRxPlans.com.
The average Part D plan premium in 2020 was $32.74 per month.1 Some beneficiaries may be required to pay a higher IRMAA amount in 2021 based on their income, which you can see in the table below.
|2019 Individual tax return||2019 Joint tax return||2019 Married and separate tax return||2021 Part D premium|
|$88,000 or less||$176,000 or less||$88,000 or less||Your plan premium|
|More than $88,000 and up to $111,000||More than $176,000 and up to $222,000||N/A||Your plan premium + $12.30|
|More than $111,000 up to $138,000||More than $222,000 up to $276,000||N/A||Your plan premium + $31.80|
|More than $138,000 up to $165,000||More than $276,000 up to $330,000||N/A||Your plan premium + $51.20|
|More than $165,000 up to $500,000||More than $330,000 up to $750,000||More than $88,000 up to $412,000||Your plan premium + $70.70|
|More $500,000||More than $750,000||More than $412,000||Your plan premium + $77.10|
- Medicare Supplement Insurance premiums
Medicare Supplement Insurance (or Medigap) plan premiums may vary according to a variety of factors, such as plan type, age, gender, smoking status, health and where you live.
The average Medicare Supplement Insurance plan premium in 2018 was $125.93 per month.3
What Are the 2021 Medicare Deductibles?
A deductible is the amount of money you must pay for covered services out of your own pocket before your Medicare coverage kicks in.
- 2021 Medicare Part A deductible
The Medicare Part A deductible resets each benefit period, which begins the day you are admitted to a hospital or skilled nursing facility as an inpatient and ends when you have not been an inpatient for 60 consecutive days.
The 2021 Part A deductible is $1,484 per benefit period.
This deductible is not annual, and you could be required to meet the Part A deductible several times in one year.
- 2021 Medicare Part B deductible
Part B requires a deductible of $203 per year in 2021 before your Part B coverage kicks in.
- Medicare Advantage deductibles
Deductibles for Medicare Advantage plans are set by the individual plan carrier. Some plans may have separate deductibles for medical costs and prescription drugs.
- 2021 Medicare Part D deductibles
Deductibles for Part D plans are also determined by the company selling the plan. By law, your 2021 Part D plan deductible can be no greater than $445 per year.
Many plans may have lower deductibles, and some plans even have $0 deductibles.
What Are 2021 Medicare Coinsurance and Copayment Costs?
Cost-sharing measures are the share of your medical bills that you must pay after meeting your deductible.
Cost-sharing comes in two forms: Copayments, which are typically a flat fee, and coinsurance, which is generally measured as a percentage of the bill.
For example, a $20 copayment (or copay) means you must pay $20 for a covered service after you meet your deductible, and Medicare pays the rest.
A 20 percent coinsurance means you pay 20 percent of the bill after you meet your deductible, and Medicare pays the remainder.
- 2021 Medicare Part A coinsurance or copayments
Part A only requires coinsurance once you have been an inpatient at a hospital or skilled nursing facility for a certain length of time and have met your Part A deductible.
For hospitals and mental health facilities, Part A coinsurance is $371 per day in 2021 for days 61-90 of your inpatient stay.
After 90 days, you begin to dip into your “lifetime reserve days,” and you pay a coinsurance of $742 per day in 2021.
You have 60 lifetime reserve days to use over the course of your life, and once those are used, you are responsible for all costs.
If you have an inpatient stay at a skilled nursing facility, your 2021 Part A coinsurance is $185.50 per day for days 21-100 of your stay. After 100 days, you are responsible for all costs.
Part A can also require a 20 percent coinsurance for services you receive in a mental health facility.
If you receive hospice care, you may face a 5 percent coinsurance for inpatient respite care and copayments of no more than $5 for prescription drugs used during hospice care.
- 2021 Medicare Part B coinsurance or copayments
After meeting your Part B deductible, you will typically pay 20 percent Part B coinsurance for covered services and items. The 20 percent is calculated from the Medicare-approved amount, or the amount that Medicare has determined it will pay a provider for the service or item.
- Medicare Advantage
Cost-sharing in a Medicare Advantage plan may be determined by the company designing and selling the plan.
- Medicare Part D
Copayments and coinsurance in Part D plans may be determined by the carrier.
Drugs covered by Part D plans are separated into different tiers, and each tier of drug can bring a different cost-sharing amount.
For example, less expensive generic drugs might be on a lower tier and require a less expensive copay, while more expensive brand name drugs might be in a higher tier and come with a higher coinsurance requirement.
Once you have reached $6,550 in drug spending for the year in 2021, you enter the “catastrophic coverage phase” of your Medicare drug coverage.
In the catastrophic coverage phase in 2021, you will pay a low coinsurance amount for generic drugs and brand name drugs for the rest of the year.
- Medicare Supplement Insurance
Medigap Plan N can require up to $20 copayments in 2020 for certain office visits, and up to a $50 copayment in 2020 for an emergency room visit that does not result in inpatient hospital admission.
What Are Other Medicare Costs in 2021?
Premiums, deductibles, copayments and coinsurance make up the bulk of Medicare out-of-pocket costs.
But there are still a few additional costs that beneficiaries may incur.
- Late enrollment fees
When you first become eligible for Medicare, you're given an Initial Enrollment Period to sign up for coverage. If you wait until after this period ends, you may face late enrollment fees that are added to your Part B and/or Part D premiums if you don't qualify for special enrollment.
- Part B excess charges
When a health care provider does not accept Medicare assignment, it means they do not agree to accept the Medicare-approved amount as full payment for their services. They reserve the right to charge up to 15 percent more than the Medicare-approved amount for their product or service.
This is called an excess charge, and is the responsibility of the beneficiary.
2021 Medicare Supplement Insurance (Medigap) Plans Can Help Pay For Certain Medicare Out-of-Pocket Costs
Medicare Supplement Insurance plans can help cover certain Medicare deductibles, copayments, coinsurance and other out-of-pocket costs required by Medicare Part A and Part B.
Depending on which Medigap plan you choose, many of your Medicare out-of-pocket costs could be covered.
A licensed insurance agent can help you compare the Medigap plans that may be available where you live so that you can find a plan that fits your coverage and budget needs.
Compare Medigap plan costs in your areaFind a plan
Or call now to speak with a licensed insurance agent:
1 Centers for Medicare and Medicaid Services, "Annual Release of Part D National Average Bid Amount and Other Part C & D Bid Information" July 2020. Data retrieved from https://www.cms.gov/files/document/july-29-2020-parts-c-d-announcement.pdf
2 Jacobson, G., et al. Medicare Advantage 2020 Spotlight: First Look. (Oct. 24, 2019). Kaiser Family Foundation. Retrieved from www.kff.org/report-section/medicare-advantage-2020-spotlight-first-look-data-note.
3 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.
All other cost information retrieved from Medicare.gov: