Medicare

Medicare Deductible 2021

See Medicare Part A and B deductible for 2021 below. The Medicare deductible amount is updated every year by the Centers for Medicare and Medicaid Services.

At the time of writing—2020—Medicare Part A deductible is $1,408 and Medicare Part B deductible is $198. While Medicare Part A deductible is a lot more than Part B, oftentimes, Medicare beneficiaries don’t pay monthly premiums for Part A. That is if the beneficiary is paid Medicare taxes for more than 40 quarters.

With that said, if you’ve been working for more than 10 years, you aren’t going to pay Medicare Part A premiums. That is because you’ve paid Medicare taxes under FICA taxes. In addition to this, you may pay more than what’s set by the CMS for Part B. As of now, the Medicare Part B standard monthly premium is $144. If you are considered a higher-income beneficiary, you are likely to pay more than the standard monthly premium.

Medicare Part A Deductible 2021

Medicare Part A covers the costs of hospital stays. Although the deductible is quite a bit higher, after the deductible is met, the beneficiary only pays coinsurance for the number of days in the hospital. The 2020 figures for the coinsurance are

  • $0 for 1 to 60 days
  • $352 for 61 to 90 days
  • $704 for more than 90 days

There is one thing you should know about hospital stays for more than 90 days for each benefit period though. For every day after 90 days, you will use your lifetime reserve days. Learn more about lifetime reserve days.

Since there is still time for the CMS to announce the Part A deductible, we can only speculate how much it might be. From 2019 to 2020, Medicare Part A deductible increased by $44. If the increase would be the same as in 2021, Medicare Part A deductible would increase to $1,452.

Medicare Part B Deductible 2021

On the other hand, Part B deductible went from $185 to $198 in 2020. Again—if the increase were to be the same, Medicare Part B deductible would be $211. With all this said, in 2021 Medicare Part A premium should be $1,452 and Part B deductible $211.

Medicare Part B covers the medical costs but prescription drugs aren’t included. For that, you must have Medicare prescription drug coverage (Part D). If you have a Medicare Advantage Plan, all of these might be covered under a single plan. For more information on both the prescription drug coverage and Medicare Advantage Plans, read this article.

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