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January 6, 2021
How Much Will Medicare Cost Me Per Month In 2021?

How Much Will Medicare Cost Me Per Month In 2021?

Do you know how much Medicare will cost you each month in 2021?

Planning for retirement is really important, and if you’re going to be living off of a fixed income, you need to be aware of your expected insurance costs.

So, how much will Medicare cost you?

Use the interactive Medicare Cost Worksheet to estimate your monthly premiums

2021 Medicare Part A Costs

Medicare Part A helps cover bills from the hospital. So, if you are admitted and receive inpatient care, Medicare Part A is going to help with those costs.

If you’ve worked at least 10 years or can draw off a spouse who has, Medicare Part A is free to have. That means you don’t have any monthly costs to have Medicare Part A.

This doesn’t mean that Medicare Part A doesn’t have other costs like a deductible and coinsurance – because it does – but you won’t have to pay those costs unless you actually need care.

For most people, having Medicare Part A is free.

The Medicare Part A deductible, as well as the coinsurance for care, fluctuates slightly every year, but here are the current costs for 2021:

  • $1,484 deductible
  • Days 1-60: $0 coinsurance
  • Days 61-90: $371 coinsurance
  • Days 91+: $742 coinsurance per “lifetime reserve day,” which caps at 60 days
  • Beyond lifetime reserve days: You pay all costs

For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care services in a benefit period will be $185.50 in 2021.

2021 Medicare Part B Costs

Medicare Part B helps cover your medical bills. Lab tests, doctor visits, and wheelchairs are examples of some services and items that Medicare Part B would help pay for.

Medicare Part B does have a monthly premium, which is $148.50 per month. This monthly premium tends to go up a little bit each year. Also, if you have a high income, your premium will be higher.

This means it’s important to make sure you really need Medicare Part B, because if you don’t, you’re paying for insurance you aren’t using.

We always recommend individuals who are working past the age of 65 to contact us to make sure their current insurance set-up is appropriate.

[RELATED: Working Past 65?]

Medicare Part B does have a deductible, but it’s much cheaper than you’re probably used to seeing – it’s only $203 per year. After you meet that deductible, you typically pay 20% of the Medicare-approved amount for any services, tests, or items you need.

2021 Medicare Part D Costs | Prescription Drug Plan (PDP) Costs

For a Medicare Part D plan, also called a Prescription Drug Plan (PDP), the monthly cost varies depending on the prescriptions you take.

The average monthly premium for a Medicare Part D plan is around $30 per month in 2021.

If you do take medications, you’ll have other costs, like a deductible, copays, and coinsurance.

We recommend you follow our Medicare Part D Cheat Sheet to determine your actual drug plan costs. You can do this directly on Medicare.gov.

Download the Medicare Part D Cheat Sheet

2021 Medigap Costs | Medicare Supplement Costs

Since Medicare only covers about 80% of your medical bills, many people add on a Medicare Supplement to pick up the remaining costs. The monthly premium for a Medicare Supplement will depend on which plan you choose, your age, your gender, your zip code, and your tobacco usage.

Please contact an agent for accurate rates for you and your zip code.

Get a Medicare Supplement Quote

2021 Medicare Part C Costs | Medicare Advantage Costs

If you choose to get Medicare Part C, which is also called Medicare Advantage (MA), you are replacing Medicare Parts A and B. Often times, MA plans also include a drug benefit, so you also replace Part D.

However, you still must pay the $148.50 monthly premium for Medicare Part B.

MA premiums vary, depending on which type of plan you choose, which area you’re in, and other similar factors. In general, MA premiums are quite low, and sometimes, they’re even $0.

While the monthly premium is very low or even $0, there are some things to consider before opting an MA plan. You can read about the pros and cons of Medicare Advantage here.

2021 Medicare MSA Costs | Medical Savings Account for Seniors

A Medicare MSA, a type of Medicare Advantage plan, is another option for seniors. The most widely available plan is from Lasso Healthcare, and it is $0 premium.

An MSA combines high-deductible health coverage with an annually funded medical savings account.

Here is what the Lasso Healthcare MSA plan benefits are for 2021:

  • $2,000 or $3,000 Deposit on January 1, 2021 (prorated depending on when you enroll)
  • $5,000 or $8,000 Deductible
  • $3,000 or $5,000 Member Responsibility
  • $0 copays
  • No networks

You will need to add a Medicare Part D drug plan, because MSA plans aren't allowed to include drug coverage.

Read More: How Do Medicare MSA Plans Work, and Do I Need One?

Total 2021 Monthly Medicare Costs

When we total up all of your total monthly Medicare costs, here’s what you can expect.

If you decide to use Original Medicare with a Medicare Supplement and a drug plan, your monthly costs would be:

  • $148.50 for Medicare Part B
  • Get a quote for your Medicare Supplement (prices vary widely)
  • An average of $30 for your drug plan (this can vary)

If you decide to use a Medicare Advantage plan that includes a drug plan, your monthly costs would be:

  • $148.50 for Medicare Part B
  • A very low (or $0) monthly premium for the MA plan

If you decide to get the Lasso Healthcare MSA and a drug plan, your monthly costs would be:

  • $148.50 for Medicare Part B
  • $0 premium for the MSA plan
  • An average of $30 for your drug plan

For extra help, use the interactive Medicare Cost Worksheet to determine how much you will pay each month for Medicare.

Use the interactive Medicare Cost Worksheet to estimate your monthly premiums

Luke Hockaday
By
Luke Hockaday
Luke Hockaday is a Customer Success Rep here at Medicare Allies. Luke has been helping Medicare-eligible clients with their insurance and retirement-planning needs since 2011. Luke is passionate about 3 things, and 3 things only: senior insurance, football, and food!

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Are you feeling in the dark about your potential Medicare costs? Find out exactly how much Medicare will cost you per month with the interactive Medicare Cost Worksheet.

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