Here are the new numbers for Medicare premiums, deductibles, and copays for 2021.
Most people don't pay a monthly premium for Medicare Part A (hospital insurance). But if you have to pay for Part A because you or your spouse don't have a long enough work history, you'll pay between $259 (for 30-39 work credits) and $471 (for fewer than 30 work credits).
In 2021, you'll also pay a $1,484 deductible for each benefit period in which you use hospital or skilled nursing inpatient care, in addition to the following copays.
The standard Medicare Part B premium is $148.50 per month in 2021. But some people who were enrolled in Medicare in 2020 or earlier will pay slightly less (about $145 per month) because of a hold harmless provision that doesn't allow Social Security payments to be reduced from year to year for Medicare premiums.
If you first enroll in Medicare Part B during 2021, or you are not collecting Social Security benefits, your premium will be $148.50 per month. Also, if your adjusted gross income is over $88,000 (or $176,000 for a couple), the monthly premium is higher. The monthly surcharges have increased for 2021, as follows:
Yearly Income in 2019 |
Additional Monthly Premium in 2021 |
single, $87,001–$111,000 |
$207.90 |
married, $176,001–$222,000 |
$207.90 |
single, $111,001–$138,000 |
$297.00 |
married, $222,001–$276,000 |
$297.00 |
single, $138,001–$165,000 |
$386.10 |
married, $276,001–$330,000 |
$386.10 |
single, $165,001–$499,999 |
$475.20 |
married, $330,001–$749,999 |
$475.20 |
single, $500,000 or above |
$504.90 |
married, $750,000 or above |
$504.90 |
The Part B deductible for 2021 increases slightly to $203 per year.
The cap on outpatient physical therapy, speech-language pathology, or occupational therapy has been removed, but there are still thresholds, as follows:
If your therapist tells Medicare that more care is medically necessary and Medicare approves, you can go over the thresholds.
Beneficiaries of Part C, also called Medicare Advantage, have to pay the Part B premium as well as a monthly premium, although a good number of Advantage plans don't charge a monthly premium, and they generally have lower costs than traditional Medicare plans.
The average monthly premium for Medicare Advantage plans in 2021 has decreased to $21.
Part D premiums vary depending on the plan you choose, with an average of $30. The maximum Part D deductible for 2021 is $445 per year (though some plans waive the deductible completely).
Also, if your adjusted gross income is over $88,000 (or $176,000 for a couple), you will pay a monthly adjustment amount to Medicare in addition to your monthly Part D premium. Here are the Part D additional amounts for individuals making over $88,000 and married couples making over $176,000:
Yearly Income |
Monthly Surcharge |
single, $88,001–$111,000 |
$12.30 |
married, $176,001–$222,000 |
$12.30 |
single, $111,001–$138,000 |
$31.80 |
married, $222,001–$276,000 |
$31.80 |
single, $138,001–$165,000 | $51.20 |
married, $276,001–$330,000 |
$51.20 |
single, $165,001–$499,999 |
$70.70 |
married, $330,000–$749,999 | $70.70 |
single, $500,000 and over |
$77.10 |
married, $750,000 and over |
$77.10 |
You no longer have to pay the full amount of your drug costs while in the "donut hole." Once your total yearly drug expense reaches $4,130 (and until your total out-of-pocket costs reach $6,550), you must pay 25% of your drug costs for both brand name and generic drugs. When you are on the other side of the donut hole, you pay 5%, or $3.70 for generics and preferred drugs and $9.20 for brand name drugs, whichever is greater.
There are subsidies available to pay for Part D for those with low income (called Extra Help). See Nolo's article on Extra Help for Part D for more information.
Effective date: Jan 01, 2021