The Centers for Medicare and Medicaid Services (CMS) released Medicare Part B coverage and costs for 2021. Here is what you need to know! Firstly, Medicare Part B is responsible for covering medical care provided in a doctor’s office and other outpatient services. It also covers Medicare-approved durable medical equipment (DME) and medications administered with a doctor’s supervision, such as chemotherapy drugs.
Part B deductible
The deductible for Part B will be $203 next year, which is up $5 from $198 in 2020. After you meet your deductible for the year, it is common to pay 20 percent of the Medicare-approved amount for most doctor services (including most doctor services while you’re a hospital inpatient), outpatient therapy, and durable medical equipment (DME).
Part B premiums
You pay a premium each month for Part B. If you’re already receiving one of the following retirement benefits, it’s likely that your Part B premium will be automatically deducted from that check each month:
(If you don’t get these benefit payments, you’ll get a bill.)
Part B premium costs
The standard Part B premium amount in 2021 is $148.50, which is an increase of 2.7 percent (or $3.90) difference from last year’s figure of $144.60.
If you are a high-income earner, you may pay a little more for your monthly premium. This is an Income Related Monthly Adjustment Amount (IRMMA), also known as a surcharge. Your surcharge is based on your tax returns from two years prior. For example, your 2021 surcharge will be determined based on your 2019 tax returns.
If you don’t sign up for Part B when you’re first eligible, you may have to pay a late enrollment penalty. Medicare Open Enrollment is October 15 – December 7.