Cost for Medicare Part A
Medicare Part A is free for most Medicare beneficiaries. If you or your spouse have worked for at least 10 years, then you qualify for a premium-free Medicare Part A. This is because you have already paid for Medicare Part A through Medicare payroll taxes.
However, if you do not qualify for a premium-free Part A, then Medicare requires you to pay full price for Part A, which is $471 per month. Those who have worked for 31-39 quarters can get a monthly premium of $259 per month.
Should you require a hospital stay, your Part A deductible will be $1,484 in 2021.
Cost for Medicare Part B
Your Part B premium is based upon your adjusted gross income (AGI). Generally, if your income is less than $88,000 a year, you would be required to pay a Medicare Part B monthly premium of $148.50 per month. In addition to the Medicare Part B monthly premium, you are also responsible for covering your deductible. The deductible for Part B in 2021 is $203.
Cost for Medicare Part C
Medicare Part C (Medicare Advantage) costs vary depending on the insurer you buy your plan from. Medicare Advantage plans are offered by private insurance companies, and every policy has different premiums and coverage. Generally, Medicare Advantage plans have a $0 premium, but the standard premium in 2021 is $21.
Part C also has a maximum out-of-pocket limit which is currently at $7,550.
Cost for Medicare Part D
Medicare Part D cost is similar to costs for Part B – they both depend on your household income. Premiums for Part D will also vary depending on the insurance company you got your coverage from. However, the standard premium for Part D in 2021 is $30. Part D also has a maximum deductible of $445.
Cost for Medicare Supplements
The cost of a Medicare Supplement (Medigap) plan depends on two major factors – the Medigap policy you choose and the insurance company’s pricing structure.
To note, different Medigap plan letters offer different levels of coverage, making the prices differ. For instance, Medicare Supplement Plan G offers more benefits when compared to Medicare Supplement Plan K, thus, having a higher monthly premium.
Also, Medicare Supplement costs also vary based on the pricing structure. There are three different ways in which Medicare Supplement policies can be priced, and they include Issue-age-rated, Attained-age-rated, and Community-rated.
For more information on the 2021 costs of Medicare, please don’t hesitate to contact Caring Insurance Solutions to speak with an experienced Medicare expert.