Text submitted by Ryan Sick

 

M

edicare premiums, deductibles and coinsurance amounts change annually. Here’s a look at some of the costs that will apply in 2021 if you’re enrolled in Original Medicare Part A and Part B.

MEDICARE PART B PREMIUMS

According to the Centers for Medicare & Medicaid Services (CMS), most people with Medicare who receive Social Security benefits will pay the standard monthly Part B premium of $148.50 in 2021.

People with higher incomes may pay more than the standard premium. If your modified adjusted gross income (MAGI) as reported on your federal income tax return from two years ago (2019) is above a certain amount, you’ll pay the standard premium amount and an Income Related Monthly Adjustment Amount (IRMAA), which is an extra charge added to your premium, as shown in the following table:

OTHER MEDICARE COSTS

The following out-of-pocket costs for Original Medicare Part A and Part B apply in 2021:

  • Part A deductible for inpatient hospitalization: $1,484 per benefit period
  • Part A premium for those who need to buy coverage: up to $471 per month (most people don’t pay a premium for Medicare Part A)
  • Part A coinsurance: $371 per day for days 61 through 90, and $742 per “lifetime reserve day” after day 90 (up to a 60-day lifetime maximum)
  • Part A skilled nursing facility coinsurance: $185.50 for days 21 through 100 (for each benefit period)
  • Part B annual deductible: $203

For more information on costs and benefits related to Social Security and Medicare, visit ssa.gov and medicare.gov.

C.Ryan Sick, Investment Advisor, Raymond James Financial Services, 303 E Caldwell Ave Visalia CA 93277, Phone (559) 429-4270

Securities offered through Raymond James Financial Services Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors Inc.

Sick Investment Partners is not a registered broker/dealer and is independent of Raymond James Financial Services.

This information, developed by an independent third party, has been obtained from sources considered to be reliable, but Raymond James Financial Services Inc. does not guarantee that the foregoing material is accurate or complete. This information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. Converting a tax-deferred plan into a Roth IRA has tax implications. Investors should consult a tax advisor before deciding to do a conversion. Strategies mentioned may not be suitable for all investors. The material is general in nature. Past performance may not be indicative of future results. Raymond James Financial Services Inc. does not provide advice on tax, legal or mortgage issues. These matters should be discussed with the appropriate professional.

 

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