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Medicare Part B Premium 2021 - happy senior couple

Medicare Part B Premium 2021

Medicare Part B Premium 2021

In CMS.gov press release, Medicare Part B premium will increase $3.90 from $144.60 in 2020 to $148.50 in 2021. If you enroll in Medicare Part B after November 1, 2020, most beneficiaries will pay the standard $148.20 Part B premium in 2021. Discover how Medicare beneficiaries can avoid this 2.7% Part B increase.

Estimated reading time: 5 minutes

For most Medicare beneficiaries who had Medicare Part B before November 1, 2020, and had their Part B premium withdrawn from their Social Security benefits, you will only have a 1.3% increase in 2021. The Cost of Living Adjustment and the Medicare Hold Harmless Provision restricts your Part B premium increases.

Medicare Part B Premium 2021 - happy senior at mailbox
Medicare beneficiary gets a COLA notice in the mail.

How you can lower your Part B premium costs?

Save Money on Part B Premiums

By having your Part B premiums withdrawn from your Social Security benefits, you can limit the cost of premium increases. In this case, your Part B premium increase is limited to the Cost of Living Adjustment (COLA) which is 1.3% in 2021.

The Medicare Hold Harmless Provision restricts Part B premium increases to protect your social security benefits. However, if you pay your Medicare Part B premium directly, you do not qualify for the hold-harmless provision. Thus, you could see up to a 25% increase in Part B premiums in 2021.

For example, your $144.60 premium could go up to $180.75 in 2021. Since you pay this increased premium every month, $36.15 more per month equals a $433.80 increase per year!

Medicare Costs 2021 senior calculates costs

Congress is helping to limit 2021 Part B Premium increases.

Congress Caps Medicare Part B Premium

According to a CNBC report, the Senate passed a short-term funding bill signed by President Trump that limits the 2021 Part B premium increase to 25%. This bill is inconsequential for most Medicare beneficiaries because they already have Part B premium deducted from their Social Security benefits, which has a 2021 COLA cap of 1.3%.

The COVID-19 pandemic has increased Part B medical costs. According to the CDC, the percentage of visits to emergency departments or outpatient providers for COVID-like illness (CLI) has increased between March 1 and October 10, 2020. The red line shows CLI increases from 6.25% to 20.25%. Thus, coronavirus illness has increased Part B medical costs in 2020.

CDC - COVID illness report 2020

The increase in COVID 2020 medical costs may drive up Part B premiums in 2021. The congressional 25% cap will help prevent a spike in premiums.

The Part B deductible will also increase in 2021.

Medicare Part B Deductible 2021

Medicare Part B Premium 2021 - happy senior couple

In addition to the Part B premium increase, the Part B deductible will rise $5 from $198 in 2020 to $203 in 2021. Furthermore, all Medigap Plans after January 1, 2020, require you to pay the Part B deductible. If you are new to Medicare in 2021, the most comprehensive Medicare Supplement you can get is Plan G.

Senior Healthcare Direct can help you find the most cost-effective Medicare Supplement Plan. Call 1-855-468-4717 or get your quote.

If you were a high-income earner, your Medicare Part B premium will increase in 2021.

Medicare Part B Premiums in 2021

The chart shows 2021 Part B premiums for all income levels. Individuals or married couples filing separately who earned $88,000 or less will pay the standard premium of $148.50. Furthermore, if you and your spouse both had modified adjusted gross income (MAGI) of $176,000 or less, you also pay this standard premium.

In all cases, your IRS tax return is from the previous two years. Thus, your 2019 tax return is the basis for your 2021 Part B monthly premiums. For high-income earners whose MAGI is greater than $88,000 per person, you will pay the standard Part B premium of $148.50 plus an Income Related Monthly Adjustment Amount (IRMAA).

For example, with a 2019 MAGI is $120,000, you pay $148.50 + $297 IRMAA for a total monthly payment of $445.50.

Medicare Part B Premiums 2021
2021 Medicare Part B Premium Amounts (click chart to enlarge)

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4 parts of medicare

Medicare Parts coverage and cost in 2021

What do Medicare Parts cover and cost in 2021?

There are 4 parts of Medicare: Part A, Part B, Part C, and Part D.

  • Part A covers inpatient hospital services.
  • Part B covers outpatient medical services.
  • Part C is Medicare Advantage plan offered by private companies approved by Medicare.
  • Part D provides prescription drug coverage to lower the cost you pay for medications.

Estimated reading time: 9 minutes

Before you receive inpatient hospital benefits, you must first pay Part A deductible of $1484 in 2021. However, you can avoid paying this cost by having a Medicare Supplement plan.

Embed or download 4 Parts of Medicare infographic

What does Medicare Part A cover and cost in 2021?

According to Medicare.gov, Part A covers the following:

  • Inpatient hospital care
  • Skilled Nursing Facility care
  • Long-term Care Hospitals
Medicare Part A - Hospital

Inpatient Hospitals Coverage and Cost in 2021

The first 60 days of inpatient care is covered by Medicare Part A. In other words, you pay $0 coinsurance for each 60 day benefit period. For example, you can be a hospital inpatient multiple times per year and each hospital stay will cost you nothing so long as each stay is 60 days or less. However, hospital stays between 61 days and 90 days will cost you $371 coinsurance per day in 2021.

Skilled Nursing Facility

Skilled Nursing Facility Coverage and Cost in 2021

Medicare Part A also covers 20 days of care in a Skilled Nursing Facility (SNF). Specifically, you pay $0 coinsurance for each 20 day benefit period. Some of the benefits of SNF include physical therapy, meals, and dietary counseling. Therefore, you can get short-term skilled nursing care multiple times per year for no cost so long as each stay is 20 days or less. However, SNF stays between 21 days and 100 days will cost you $185.50 per day in 2021.

Long-term Care Hospital Coverage and Cost in 2021

Medicare Part A covers the first 60 days in a Long-term Care Hospital (LTCH). In particular, the cost of LTCH is $0 for each 60 day benefit period under the following conditions.

  • You are transferred to a LTCH directly from an acute care hospital.
  • You are admitted to a LTCH within 60 days of being discharged from a hospital.

If the above conditions do not apply, then you must pay Part A $1484 deductible in 2021 before Medicare will pay anything. Furthermore, LTCH stays from 61 days to 90 days will cost you $371 coinsurance per day in 2021.

Medicare Part A - Long-Term Hospital Care

What does Medicare Part B cover and Cost in 2021?

Medicare Part B covers the following services:

  • Medical outpatient services for stays at any hospital or medical facility for less than 24 hours. For example, a stay that occurs overnight but for less than 24 hours is outpatient service.
  • Preventive services to prevent illness such as seasonal flu-shot and annual wellness visits.
first aid kit

Medicare Outpatient Coverage and Cost in 2021

Original Medicare covers 80% of medically necessary services and supplies. These Part B medical services include:

Before Medicare pays for these medical services and supplies, you must first pay Part B deductible of $203 in 2021. Furthermore, you are responsible to pay the 20% that Medicare does not cover. However, Medicare Supplement Plan C and Plan F pay Part B deductible and your 20% coinsurance.

Medicare Preventive Coverage and Cost

Medicare preventive services cover screening tests that help detect health conditions at early stages when treatment is most effective. In the tables below, we list 31 preventive tests covered by Medicare Part B. 

Medicare Part B preventive screening table 1
Click to view larger table size
Medicare Part B preventive screening table 2
Click to view larger table size

In the above tables, 71% of these screening tests are free after you pay the $203 Part B deductible. Furthermore, 19% of tests require payment of Part B deductible and 20% coinsurance. Finally, 10% of tests you pay absolutely nothing: neither Part B deductible nor 20% coinsurance. If you qualify, you many pay nothing for the following preventive screening tests:

  • Nutrition Therapy Service – you pay nothing if you have diabetes or kidney disease.
  • “Welcome to Medicare” preventive visit – you pay nothing as long as the doctor does not perform additional tests or services.
  • Yearly Wellness Visit – available every 12 months as long as the doctor does not perform additional tests or services.

To receive Part B coverage you need to pay a monthly premium. In 2021, the standard premium for Part B is $148.50.

What does Medicare Part C cover and cost in 2021?

Part C Medicare Advantage network
MA plans have a network of doctors, hospitals, and other medical services.

Medicare Part C is an alternative to Original Medicare and covers Part A (Hospital Insurance) and Part B (Medical Insurance). Part C is also known as Medicare Advantage (MA) Plan.

Medicare Advantage (MA) Coverage

MA plans often include Medicare Part D prescription drug coverage. Moreover, many MA plans include extra benefits not covered by Original Medicare. For example, MA plans may include dental, vision, and hearing. Some MA plans even include gym memberships such as Silver Sneakers! MA plans are offered through a network of healthcare providers HMO or PPO.

Medicare Advantage (MA) Costs

To enroll in Medicare Advantage Plan (Part C) you must first be enrolled in Part A and Part B. Most Medicare beneficiaries pay no premium for Part A. However, you will have to pay Part B monthly premiums. In 2021, the standard premium for Part B is $148.50. Furthermore, you will need to pay a monthly Part C premium. According to The Kaiser Family Foundation, the average Medicare Advantage Plan premium is $36 in 2020.

When you add standard Part B and average MA premiums, the total monthly cost is $180.66 in 2020. Conversely, Original Medicare Part B and Part D premiums may only cost on average $177.34 in 2020. However, you may be thrilled to get a gym membership for only a few extra dollars per month!

You can choose a lower premium MA plan. As a result, you may be excited to pay less every month. However, some MA plans will have higher deductibles, copays, and larger out-of-pocket limits. Consequently, the cost to use your health insurance may be much higher. You may be able to avoid these excessive costs by choosing an MA premium of $40 or more.

What does Medicare Part D cover and cost in 2021?

 Part D drug plan
Part D drug plans save you money

Part D saves you money on prescription drugs. Specifically, it reduces your cost for brand-name and generic drugs. For example, rather than paying the full retail price for medications, you only pay small copayments with Part D. To join a Part D drug plan, you must be enrolled in certain parts of Medicare.

How to Join a Drug Plan

You must have either Part A or Part B to join a stand-alone Part D drug plan with Original Medicare. However, you must have both Part A and Part B to join a Medicare Advantage plan.

Part D Costs for Original Medicare and MA Plans

To enroll in Part D with Original Medicare you need to have either Part A or Part B. However, most people have both Part A and Part B coverage. Since private health insurance companies such as Aetna and Mutual of Omaha provide drug coverage, the price you pay will vary.

Part D drug costs in 2021 

All Part D drug plans have a monthly Part D premium. This amount will depend on the income reported on your 2019 tax return. Some Part D plans have an annual deductible which can not be more than $445 in 2021. However, other drug plans may have little or no deductible. 

After the out-of-pocket deductible, you pay either a copay or coinsurance for each prescription drug. For example, you pay less for drugs in tier 1 and more for drug in tier 2. Discover the differences in Medicare Part D tier costs. Furthermore, after you and your drug plan spend a certain amount, you enter a coverage gap called the donut hole.

Donut Hole Costs in 2021

In 2021, you enter the donut hole after your plan spends $4,130. Then you pay no more than 25% coinsurance for the plan’s covered brand-name and generic prescription drugs. After total out-of-pocket drug costs are $6,550 in 2021, you exit the donut hole. Learn more about the 4 stages of drug coverage and costs in 2021.

Want More Help with Medicare Parts?

You can speak with a licensed agent at 1-855-368-4717 and get more help with the 4 parts of Medicare: A, B, C, and D. Our team is very experienced at explaining Medicare parts and how they work. 

Not affiliated with the U. S. government or federal Medicare program.

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Medicare Part D Tier Costs

Your Medicare prescription drug plan categorizes your medications into tiers that have varying costs. Each drug plan can divide its tiers in different ways. Thus, each drug tier costs a different amount. For example, a Medicare drug plan may have the following coverage and costs:

  • 1st tier preferred generic drugs with the lowest copays
  • 2nd tier non-preferred generic drugs with higher copays
  • 3rd tier preferred brand name drugs
  • 4th tier non-preferred brand name drugs
  • 5th tier specialty drugs

Estimated reading time: 3 minutes

You can determine whether your prescriptions are generic or brand name by looking at your plan’s drug formulary.

Medicare Part D Tier Costs bar graph shows rising drug cost
Bar graph shows rising drug cost for each drug tier

Drug Formulary Costs

According to GoodRx, your medication formulary “is a list of generic and brand name prescription drugs covered by your health plan.” When you use the drugs in your formulary, you will pay less for prescriptions. Furthermore, Medicare.gov says, “if you use a drug that isn’t on your plan’s drug list, you’ll have to pay full price instead of a copayment or coinsurance.” (unless you qualify for a formulary exception).

In most cases, tier 1 and 2 generic drugs will cost less than tier 3 and Specialty tiers. The price you pay for both generic and brand name prescriptions will change depending on your coverage stage. You can learn more about the four stages of drug coverage and costs in 2021.

Senior at pharmacy with pharmacist wearing face mask
Senior at pharmacy with pharmacist during COVID-19.

Medicare Part D Costs for Tier 1 and 2

In the MedicareBob video, Robert Bache says, “most drug plans cover tier-1 medications for $1 or $2, and tier-2 drugs for $3 to $5.” Furthermore, the price you pay for tier-1 and tier-2 prescriptions does not apply towards the Part D deductible. Depending on your Part D drug plan, it can divide tiers in different ways.  

Medicare Part D Costs for Tiers 3, 4, and 5

Part D drug plans have their own formularies. Depending on your plan, you may pay the full prescription cost in tiers 3, 4, and 5. Some drug plans have a deductible and some don’t. However, no Medicare drug plan may have a deductible larger than $445 in 2021.

Once you have spent $4,130 in 2021, you enter the Donut Hole. Then you pay 25% on all drugs tiers until you spend $6,550. After paying $6,550, you are out of the Donut Hole. Finally, you have reached Catastrophic Coverage and you only pay a small coinsurance or copayment amount for covered drugs until the end of the year.

Senior Healthcare Direct can help you choose a drug plan that saves you the most money per year.

Medicare Part D costs prescription bottle with hunder dollar bill

Choosing a Cost-Effective Drug Plan

Senior couple sitting inside on couch

When you provide a list of your prescriptions, Senior Healthcare Direct can shop all available drug plans to find you the most cost-effective. Find out which drug plan will save you the most amount of money based on your prescriptions. Fill out the Part D Drug Finder form.

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Medicare Part A Deductible 2021

Medicare Part A Deductible 2021

Medicare Part A Deductible 2021

Medicare Part A Deductible 2021

In 2021, your Medicare Part A deductible will increase $76 from $1408 in 2020 to $1484 in 2021. You must pay the Part A deductible before Medicare covers your hospital expenses. However, if you do not become a hospital inpatient in 2021, you do not pay the Part A deductible. When you pay the Part A deductible of $1484 in 2021, you can receive the following hospital coverage.

Estimated reading time: 3 minutes

Part A Hospital Coverage and Costs 2021

Your Part A deductible covers a 60-day benefit period. For example, a hospital admits you as an inpatient in 2021. According to Medicare.gov, for the first 60 days, you have $0 coinsurance. Between days 61 and 90, your coinsurance will increase $19 per day from $352 in 2020 to $371 in 2021. Furthermore, for days 91 and beyond, your coinsurance will increase $38 per day from $704 in 2020 to $742 in 2021.

In addition to Part A deductible and coinsurance costs, you may pay a monthly premium.

Medicare Part A hospital inpatient
Part A Premiums 2021
Part A premiums based on your quarters worked

Part A Premiums 2021

Most Medicare beneficiaries have already paid their Part A premium before age 65 by having worked 40 quarters. However, for those people who worked less than 40 quarters, you will pay the amounts shown in the table. For example, if you have less than 40 quarters worked, you pay $471 in 2021. Furthermore, if you have between 30-39 quarters worked, you pay $259 in 2021. 

Your monthly Part A premiums do not cover medical services outside a hospital setting. Find out what’s not covered by Part A.

What Part A does not cover

Part A does not cover outpatient medical services. For example, Part A does not cover ambulance transport to a hospital or outpatient doctor’s office visits. Discover the free preventive services covered by Part B, as well as the increased premiums and deductible in 2021.

Part A does not cover ambulance transport to hospital

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Senior contemplates HMO vs PPO

Medicare and You 2021

Medicare and You 2021

You can read the “Medicare and You 2021” handbook on your computer or eBook reader. It’s free to download the PDF in English or Spanish! Moreover, you can get the PDF handbook in large print, making it easier to read than the paper handbook. Furthermore, you can download and listen to the Medicare and You 2021 audio podcast.

Read it on Your Computer

Download the English PDF or Spanish PDF. This version is the same as your paper handbook. Alternatively, you can download the large print PDF in English or Spanish. To read a PDF document, you will need to install the free Adobe Acrobat Reader on your computer.

When you click the PDF links, the document will open inside your web browser. To down the PDF, you can click the folder icon with a down-pointing arrow. Then select “Save File” and click OK. You can now open the PDF and read it using Adobe Acrobat Reader.

Sign Up for Paperless

Go paperless and sign up for the e-version of the “Medicare & You” handbook. Complete the form to get your next copy electronically and help save the environment. The electronic version will contain the same information as your trusted paper copy.

Save Paper, Save Trees, Save the World

Find Information Faster

When you download the “Medicare and You 2021” PDF handbook, you can find information faster. For example, you can click on a section in the Contents and instantly go to that section. If the text is too small, you can click the “+” multiple times to make the text larger. Using Adobe Acrobat Reader, you can quickly find words by entering them in the search box.

Download on your eReader

You can read the “Medicare & You” handbook on your eReader. 

Ereaders are smaller and lighter than the “Medicare & You” paper handbook; thus, you can read it anywhere.

Get Medicare Help

We can help answer your Medicare questions. Call Senior Healthcare Direct at 1-855-368-4717 to speak with a licensed agent. You can also learn more about our Medicare Team, including photos of our agents, customer support, digital marketing, and management team.

Customer Support Team
Medicare Underwriting - Advantage vs. Supplement - Happy Seniors

Medicare Advantage vs Medicare Supplement

Compare Advantage Vs Medicare Supplement

The Medicare 2021 chart below compares Medicare Advantage vs Medicare Supplement. This chart shows positive (green), negative (red), and equal value (black). Medicare Supplement works with Original Medicare, so it provides you with nationwide coverage and access to any doctor and hospital without referrals.

However, Medicare Advantage provides you with local (HMO) or regional (PPO) coverage for doctors and hospitals in-network. For example, doctors outside an HMO network are not covered and require referrals. Furthermore, doctors outside of a PPO network are allowed but will cost you more. The 2021 chart below shows you several differences between Medicare Advantage vs Medicare Supplement.

Medicare Advantage vs Medicare Supplement - happy seniors
Medicare 2021 Chart - Advantage vs Supplement infographic
Embed and download Medicare Advantage vs Medicare Supplement Infographic

MedicareBob Video

In this MedicareBob video, Robert Bache “talks about the most important decision” people new to Medicare will make. Should you choose a Medicare Advantage or Medicare Supplement? Watch this video to help determine the right Medicare plan for you. 

Medicare Advantage vs Supplement Cost Differences

Part B Premium

Medicare Advantage and Medicare Supplement require you to have Medicare Part B. There is no Medigap Plan that pays your Medicare Part B premium. However, some Medicare Advantage Plans pay all or part of your Part B premium.

Copays and Coinsurance

Medicare Advantage charges you copays for each doctor visit or medical service. However, Advantage Plans do not charge you coinsurance.

Medicare Supplement Plans have no copays, except plans K (50%), L (75%), and N. You are charged copays for diagnostic tests, hospital outpatient, and ER visits. For Plan N, you pay up to $50 for outpatient emergency room visits and up to $20 for outpatient doctor visits.

Furthermore, Supplement Plans K and L only pay 50% and 75% respectively for Part B, Part A Hospice, and Skilled Nursing Facility coinsurance. In other words, you pay the remaining balance. For example, Medigap Plan K will cover 50% of your outpatient medicare service.

Advantage vs Supplement Plan Premiums

Medicare Advantage Plan premiums will vary based on coverage and the insurance carrier. However, CMS.gov reports, “historically low premiums in Medicare Advantage.” Furthermore, you have more than 1,600 prescription drug plans from which to choose. We can help you find the right Medicare Advantage Plan – get your quote.

Medicare Supplements pay Part A and Part B coinsurance. For example, Medigap Plan G covers 100% of your hospital and medical services after you pay a $203 Part B deductible in 2021. Plan G is the most comprehensive coverage available for people new to Medicare since 2020. You can shop Medigap Plans by calling Senior Healthcare Direct at 1-855-368-4717 or get your quote.

Medical Underwriting – Advantage vs Supplement

Medicare Underwriting - Advantage vs. Supplement - Happy Seniors
Happy seniors avoid medical underwriting.

Starting in 2021, Medicare Advantage Plans accept all health conditions, including End-Stage Renal Disease (ESRD). Likewise, you can enroll in Medicare Supplement Plan without medical underwriting during your initial Open Enrollment Period (OEP). In other words, there is no medical underwriting when you are first eligible for Medicare, which includes:

  • Three months before you turn 65
  • The month you turn 65
  • Three months after you turn 65

However, anytime after your initial Open Enrollment Period, medical underwriting is required. For example, you switch to a different Medigap Plan after your initial OEP. Discover some of the most common underwriting questions and find out whether or not you can qualify.

Prescription Drugs – Advantage vs Supplement

Medicare Advantage Plans such as HMO and PPO most often include prescription drug coverage. However, Advantage Plans are not required to cover prescription drugs. If your HMO or PPO does not provide drug coverage and you enroll in a separate Medicare Prescription Drug Plan, you will be disenrolled from your Medicare Advantage Plan.

Medicare Supplement Plans fills in the coinsurance and deductible coverage gaps of Original Medicare, which does not cover prescription drugs. To get drug coverage, you need to enroll in a separate Part D drug plan. Senior Healthcare Direct can help you find the right drug plan that includes all your prescriptions.

Max Out-of-Pocket Limits – Advantage vs Supplement

Forbes reports Medicare Advantage maximum out-of-pocket (MOOP) limits will increase to $7,550 in 2021. In other words, your max out-of-pocket cost will be $850 more for in-network services in 2021. Once you reach this MOOP limit, your Medicare Advantage plan will cover all costs until the end of the year.

All Medicare Supplement Plans cover most or all of your out-of-pocket costs except plans K and L. Thus, CMS.gov put the following out-of-pocket 2021 limits on plans K and L.

  • $6,220 for Plan K ($740 increase from 2020)
  • $3,110 for Plan L ($170 increase from 2020)

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Medicare Part B Premium 2021 - happy senior at mailbox

Cost of Living Adjustment 2021

Cost of Living Increase in 2021

The Social Security Administration (SSA) will increase the cost of living adjustment (COLA) by 1.3% in 2021. This COLA increase relates to a slight rise in the Department of Labor’s Consumer Price Index (CPI-W). Over the last 12 months ending August 2020, the CPI-W has increased by 1.3%, with food prices rising 4.1%, energy prices down 9%, and airline fares fell by 23.2%. United Airlines planned to cut more than 16,000 jobs and will now cut 13,000 jobs. SSA will mail COLA notices in December to retirement, survivors, disability beneficiaries, and SSI recipients.

Approximately 70 million Americans will see a 1.3 percent increase in their Social Security benefits and Supplemental Security Income (SSI) payments in 2021.

blog.ssa.gov
Happy Senior Mailbox
Happy senior receives COLA notice in the mail

Higher At-Home Food Costs

Cost of Living Adjustment 2021 - Senior at empty meat shelves
Where’s the beef? Increased demand for food at home results in supply chain disruption and empty grocery store shelves.

During the coronavirus pandemic in April 2020, States shut-down and restaurants closed. As a result, the high demand for groceries disrupted the food supply chain. Food distribution was not able to quickly shift from restaurants to grocery stores. Consequently, the cost of food at home rose by 4.6 percent!

Food shortages led to grocery stores with empty shelves. For example, if you could find eggs, they would be the most expensive organic eggs and cost about three times as much as generic eggs. Many meatpacking plant employees became infected with COVID-19. As a result, many meatpacking plants closed or operated at limited capacity creating meat shortages. I remember going to a grocery store meat section and seeing nothing but empty shelves.

COLA comparison 2017 – 2021

Cost of Living Adjustment 2021 chart

How does a 1.3% increase in the 2021 Cost of Living Adjustment compare to the previous four years? In 2016, COLA was zero. Since then, COLA has increased to .3% in 2017, 2% in 2018, to a high of 2.8% in 2019. Then COLA began decreasing to 1.6% in 2020 and 1.3% in 2021.

Social Security Taxes and Benefits in 2021

High-income earners may pay more social security taxes in 2021. The maximum taxable earnings will increase $5,100 from $137,700 in 2020 to $142,800 in 2021. However, the 2021 tax rate for social security and medicare will remain the same as in 2020.

People who reach full retirement age in 2021 will earn an extra $137/month. Your maximum social security benefit will increase from $3,011/month in 2020 to $3,148/month in 2021. View all 2021 Social Security changes.

Happy Senior Couple
best medicare supplement plan 2021

Best Medicare Supplement Plan 2021

What is the Best Medicare Supplement Plan for 2021?

With the 2021 Medicare Annual Enrollment Period (AEP) fast approaching, Robert Bache gives his recommendation for the best Medicare Supplement Plan. Medicare AEP begins October 15 and ends December 7, every year. Watch the video to discover which Medicare Plan Robert Bache recommends for the upcoming AEP. In the video, you will learn:

  • Historically, his Medigap Plan recommendations have been “right on” since 2012.
  • How this most comprehensive Medigap Plan works.
  • Discover how this plan saves you on monthly premiums and is a better value than Plan F.

Furthermore, Robert compares Plan N to the best Medicare Supplement Plan he recommends in 2021. Watch the video and find out how Plan N compares. 

Medigap Plans F, N, and G

best medicare supplement plan 2021
Which Medigap Plan is best for you in 2021?

Which Medigap Plan F, N, or G is best for you in 2021? To determine the best plan for you, we will consider the following three factors:

  • Eligibility – who is and who is not eligible?
  • Coverage – what are the benefit differences?
  • Costs – what are the cost difference?

For Medicare Plans F, N, and G, we will determine whether you are eligible or not and compare plan benefits and costs.

Medigap Plan F Eligibility

Suppose you have Medigap Plan F before January 1, 2020. In that case, you can continue to buy Plan F. However, anyone new to Medicare in 2020 is not eligible and can not enroll in Plan F. In other words, if you turn age 65 in 2020, you can not buy Plan F.

However, if you turned 65 before January 1, 2020, and enrolled in Plan F, you can keep it! (Medicare.gov eligibility restrictions applies to Medigap Plans C and F.)

Medigap Plan F Eligibility - senior ladies birthday cake
Best Medicare Supplement Plan 2021 Plan N and Plan G Eligibility

Medigap Plan N and Plan G Eligibility

To be eligible for any Medicare Supplement Plan, you must have Part A and Part B. Moreover, anyone eligible for a Medigap Plan is also eligible for Plan G and Plan N. Unlike Plan F, you are eligible to enroll in Plan N or Plan G whenever you turn 65 in 2020. 

You can enroll in a Medigap Plan during your initial 7-month open enrollment period. It begins three months before you turn 65, continues the month of your birthday, and ends three months after your birthday. During this period, you have guaranteed issue rights!

When you turn 65 and enroll in a Medigap Plan, you are guaranteed the following:

  • No medical underwriting questions
  • No medical disqualification – all medical conditions qualify
  • You pay the same premium as a healthy senior – even if you have health problems

However, if you do not enroll during your initial open enrollment period, you must answer medical underwriting questions. Furthermore, you can be medically disqualified or pay more for health problems. To get your Medigap Plan quote, call Senior Healthcare Direct at 1-855-368-4717.

Best Medicare Supplement Plans in 2021

The best Medigap Plans in 2021 recommended by Robert Bache is Plan G because it has the greatest value. It provides the same comprehensive coverage as Plan F at a much lower monthly premium. If you are eligible for Plan F, it has the highest monthly premium.

Plan F is a “first-dollar” plan because Medicare pays the first dollar once you pay the expensive monthly premium. With Plan F, you do not pay the Part B deductible.

However, with Plan G, you pay the $203 Part B deductible in 2021, and you could save several hundred in premiums per year. As MedicareBob says in his video, “You come out ahead” with Plan G coverage.

Best Medicare Supplement Plan 2021 - MedicareBob why plan G is a greater value than Plan F

Best Medigap Plans Coverage and Costs

The Best Medigap Plans chart compares the coverage and costs of plans F, N, and G. The green checkbox covers that benefit 100%. The red checkbox does not cover that benefit. Use this chart to compare Medigap benefits and the differences in coverage and costs.

Why Plan G is the best Medigap Plan

When you compare Medigap benefits of Plan F and G, the only difference is the Part B deductible. If you have Plan G, you pay a one-time annual Part B deductible. Since Plan G has lower premiums, you will save much more than the Part B deductible throughout the year.

So why pay more for Plan F when Plan G has the same coverage benefits? There is absolutely no reason to pay more for Plan F. Therefore, the best Medicare Supplement Plan for 2021 is Plan G.

Medigap Plan N coverage and costs

Medigap Plan N is a lower-cost alternative to Plan G. It has the same comprehensive coverage benefits as Plan G, except for Part B excess charges. Consequently, any medical provider who does not accept Medicare assignment can charge you up to 15% more than the Medicare-approved price. 

Furthermore, anytime you have an outpatient doctor’s office visit, you owe $15 copayment with Plan N. Moreover, you have up to a $50 copayment for every outpatient visit to the emergency room.

Medigap Plan N coverage and cost - Hospital Outpatient

Shop the Best Medigap Plans

As a Medicare insurance broker, Senior Healthcare Direct can shop the best Medigap Plans with all the top A-rated carriers. We save you money by comparing prices with many insurance providers. You can shop for the best 2021 Medicare Supplement Plans by calling Senior Healthcare Direct at 1-855-368-4717 or click the button to get your free quote!

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Best Medicare Supplement Plan 2021 - get quote button
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Medicare Part D Premium 2021

Medicare Part D Premium 2021 for senior women

In a CMS press released dated July 29, 2020, the average Medicare Part D premium for seniors will be approximately $30.50 in 2021. This low Part D premium is the same price from 2013. For example, Robert Bache quotes a 2013 monthly premium of $29.10 for Medicare Part D in Salt Lake County, Utah.

Medicare Part D Premium will be lower in 2021. According to ‘2020 Medicare Costs‘, Medicare Prescription drug plans (Part D) national base premium is $32.74. You will save an average of $2.24 per month on prescription drug costs in 2021. Moreover, the Trump Administration is lowering the price of life-saving insulin.

Medicare Copay Cap on Insulin

On March 26, 2020, CNN reports President Trump announced a plan to reduce the price of insulin for people on Medicare. Trump said seniors on Medicare would be able to get prescription plans that cap copay costs for insulin. Furthermore, you can access various insulin types at no more than a copay of $35 for a month’s supply. Trump said:

Today, I’m proud to announce that we have reached a breakthrough agreement to dramatically slash the out-of-pocket cost of insulin.

President Trump Medicare Copay Cap on Insulin

Part D Senior Savings Model

Part D Senior Savings Model
Insulin in 2021 will only cost $35 per month or less!

Earlier in 2020, CMS launched the Part D Senior Savings Model. It allows you to choose a plan that provides access to a broad set of insulins at a maximum of $35 copay for a month’s supply. You can select these Part D plans during the 2020 open enrollment period. Starting October 15 through December 7, you can purchase a plan and save an average of $446 per year (66%) of your insulin out-of-pocket costs. 

Furthermore, there are over 1,600 standalone Medicare Part D and Medicare Advantage Plans you can choose. These Medicare plans are available nationwide. Senior Healthcare Direct can help you shop and compare Medicare plans. To get the best price, call 1-855-368-4717 or get your quote.

ESRD Medicare Advantage 2021

Can you enroll in Medicare Advantage with ESRD?

In 2021, people with ESRD will be able to join Medicare Advantage Plans without any restrictions. Before 2021 you could only join a Medicare Advantage Plan with ESRD in certain situations. Starting in 2021, anyone with End-Stage Renal Disease can join an Advantage Plan.

What is ESRD?

ESRD is End-Stage Renal Disease. In other words, it is a medical condition in which your kidneys stop functioning, and you may need regular long-term dialysis or a kidney transplant to maintain life. Generally, you will need dialysis when you lose about 85 to 90 percent of your kidney function. In end-stage renal disease, your kidneys do not get better, and you will need dialysis for the rest of your life or a kidney transplant.

What is Dialysis?

Dialysis uses a machine to clean your body. A dialysis machine filters your blood and removes waste, salt, and extra water. Hemodialysis treatment usually lasts about four hours and is done three times per week. Dialysis is expensive!

ESRD Medicare Advantage 2021

Shop Your Medicare Advantage Plan

Robert Bache advises you to check your ANOC – “Annual Notice of Changes,” which your Medicare Advantage Plan sends you in September. The ANOC includes any changes in coverage, costs, or service area that will be effective in January. If your cost increases, you can shop for a new Medicare Advantage Plan on October 1. If you have End-Stage Renal Disease (ESRD), our office can help you. Shop your Medicare Advantage Plan at Senior Healthcare Direct by calling 1-855-368-4717.

Medicare Advantage vs. Supplement

Find out which is better Medicare Advantage vs. Medicare Supplement. Discover our side-by-side comparison chart that shows you the benefits and costs of Medicare Advantage and Medicare Supplement. 

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