With Medicare’s 2021 Annual Enrollment Period in full swing, agents are helping seniors across the country enroll in and review their existing Medicare plans. Along with making sure their clients are aware of the many Medicare changes beneficiaries should expect for the coming year, agents should explain the annual Medicare rate increases on 2021 premiums and deductibles.
Inpatient Coverage Rate Increases
Medicare Part A covers inpatient services like inpatient hospital, skilled nursing facility (SNF), home health, and hospice care. Most clients on Original Medicare qualify for “premium-free Part A,” however the monthly premium rates for those who do not qualify are increasing by approximately 2.8 percent, from $252 and $458 in 2020 to $259 and $471 in 2021, respectively.
Part A hospital inpatient deductibles and coinsurance rates will also increase for the upcoming year. The Medicare Part A benefit period deductible jumped from $1,408 in 2020 to $1,484 for 2021. Coinsurance rates for Part B jumped over 5 percent from $352 per day between days 61-90 of care and $704 for days 91+ to $371 and $742 for the same lengths of time, within each benefit period.
Outpatient Coverage Rate Increases
Medicare Part B covers outpatient services like doctor’s office visits, durable medical equipment (DME), home health services, preventative care, therapy sessions, mental health services, lab tests, and chiropractic care. All Original Medicare beneficiaries pay a premium for Part B coverage and pay the same premium rate.
In 2021, the Part B monthly premium is $148.50, up from $144.60 last year. Like with Part A, the Part B deductible and coinsurance rate are also increasing for 2021 to a total of $203 and 20 percent of the Medicare-approved amount for most doctor services. This is up from the $198 deductible in 2020.
Medicare Advantage and PDP Rate Increases
Medicare Advantage, or Medicare Part C, includes the benefits of both Parts A and B of Original Medicare while adding some additional benefits, like prescription drug coverage on select plans. Prescription Drug Plans (PDPs), or Medicare Part D, covers a formulary of drugs that are not covered by Parts A and B. Since both Parts C and D are only offered through private companies, their rates may increase or decrease separately from those of Original Medicare. Use our comparative rater tool to find the lowest-cost plan for your clients.
Social Security Benefits Increase
Beneficiaries who receive Social Security can also expect a slight increase in their income. 2021 will bring an increase in Social Security benefits and Supplemental Security Income (SSI) of around 1.3 percent, which will help beneficiaries combat rising Medicare costs and overall cost-of-living. Social Security beneficiaries should receive notice of this cost-of-living adjustment (COLA) via mail starting in December, but COLA amounts will be available online through the Message Center in beneficiaries’ my Social Security accounts as soon as early December.
We hope this information on Medicare rate increases is helpful to you.
Empower Brokerage is dedicated to helping you educate your clients on the insurance they need and staying on top of their health. Whether it’s through webinar training, one-on-one calls, seminars, or marketing plans. We want you to be successful. Give us a call if you have any questions at 888-539-1633.