Medicare Cost Adjustments for 2021 have been released
Sven Menssen : November 6 2020
This Happens Every Year in Late Fall.
Every year, those that sell Medicare products — Medicare Supplement plans, Medicare Advantage or Part D — eagerly await the day when the Medicare cost adjustments for the upcoming year will be released. Until then, rumors and “best guesses” (or prognoses of those who appear to be in the know) are plentiful online.
Often those guesses are close to what the actual figures turn out to be. But we offer a word of caution! Agents need to be careful to not state for a fact things that are not verified.
For example, last year there were many sources online that stated before the actual release of the final cost sharing figures that the annual Part B deductible for 2020 was going to be $197. Of course, this ended up being off by only $1. But we still observed a few agents quoting the incorrect amount for a couple of weeks AFTER the correct amounts have been released! OK, it was only a buck! But in the interest of not misrepresenting facts, we urge agents and their managers this time of year to be on the lookout for the release of the new Medicare numbers.
While Medicare Part A and B premium and cost-sharing amounts typically get released sometime during the “Annual Election Period” for Medicare Advantage or Prescription Drug Plans (October 15 through December 7) Medicare Part D cost-sharing amounts often get released quite a bit earlier in the year.
For 2021, the following cost changes have been made:
- $471 for those that paid Medicare taxes for less than 30 quarters ($458 in 2020)
- $259 for those that paid Medicare taxes for 30-39 quarters ($252 in 2020)
Hospital Inpatient Deductibles and Coinsurance:
- $1,484 for each benefit period ($1,408 in 2020)
- $371 for days 61 – 90 ($352 in 2020)
- $742 for each “lifetime reserve day” after day 60 ($704 in 2020)
Skilled Nursing Facility stays:
- $185.50 for days 21 – 100 ($176 in 2020)
- $148.50 for those that pay the standard premium ($144.60 in 2020)
- $203 ($198 in 2020)
Part C — Medicare Advantage
Maximum-out-of-pocket limit (MOOP):
- $7,550 for those in-network services ($6,700 in 2020)
- $11,300 for combined in and out-of-network services ($10,000 in 2020)
Part D (for “Defined Standard Benefit”)
- $445 ($435 in 2020)
Initial Coverage Limit (to get into the coverage gap):
- $4,130 ($4,020 in 2020)
- $6,550 ($6,350 in 2020)
- $3.70 for generic drugs ($3.60 in 2020)
- $9.20 for brand-name drugs ($8.95 in 2020)
Medicare Supplement Insurance
Annual deductible for High-deductible Plans F and G:
- $2,370 ($2,340 in 2020)
Plan K (annual out-of-pocket max):
- $6,220 ($5,880 in 2020)
Plan L (annual out-of-pocket max):
- $3,110 ($2,940 in 2020)