Health Insurance Medicare Medicare Part B Costs in 2021 What to Expect in the Year Ahead By Tanya Feke, MD facebook twitter linkedin Tanya Feke, MD, is a board-certified family physician, patient advocate and best-selling author of "Medicare Essentials: A Physician Insider Explains the Fine Print." Learn about our editorial process Tanya Feke, MD Fact checked by Fact checked by Sheeren Jegtvig on February 25, 2020 Shereen Lehman, MS, is a healthcare journalist and fact checker. She has co-authored two books for the popular Dummies Series (as Shereen Jegtvig). Learn about our editorial process Sheeren Jegtvig Updated on November 11, 2020 Print Table of Contents View All Table of Contents Part B Deductible Part B Premiums Individuals Married Couples Married Filing as Individual Social Security Medicare Advantage Part B Coinsurance Part B is what covers the bulk of your healthcare expenses. Understand how much you will pay out of pocket and budget for the year ahead. Rob Melnychuk / DigitalVision / Getty Images Part B Deductible The annual deductible for Part B is $203 in 2021, a $5 increase from 2020. You are required to pay the full deductible amount before Medicare will start paying towards your health expenses. Part B Premiums You pay monthly premiums for Medicare. If you do not pay your premiums in a timely manner, your coverage will be taken away. You are given a 90-day grace period to make payments before your Part B coverage is canceled. In 2018, Part B premium rates stayed at 2017 rates across five income brackets. What changed were the income brackets themselves. Many people were surprised to find out they were paying considerably more for the same income. Price hikes predominantly affected people in the top three income brackets. In 2019, not only did the premium rates increase across all income brackets but the brackets changed again. Instead of five income brackets, there were six. The change in brackets affected those at the highest income level only. In 2020 and 2021, the income categories were adjusted for inflation and premium rates increased accordingly. * Note that income brackets are based on your last completed income tax return. For 2021, please refer to your 2019 filing. 2021 Part B Premiums for Individuals Income Bracket in 2021 Income Bracket in 2020 Your Costs in 2021 Less than $88,000 Less than $87,000 $148.50 per month Increased by $3.90 per month ($46.80 per year) $88,000 - $111,000 $87,000 - $109,000 $207.90 per month Increased by $5.50 per month ($66 per year) $111,000 - $138,000 $109,000 - $136,000 $297.00 per month Increased by $7.80 per month ($93.60 per year) $138,000 - $165,000 $136,000 - $163,000 $386.10 per month Increased by $10.10 per month ($121.20 per year) $165,000 - $500,000 $163,000 - $500,000 $475.20 per month Increased by $12.50 per month ($150 per year) More than $500,000 More than $500,000 $504.90$491.60 per month Increased by $13.30 per month ($159.60 per year) 2021 Part B Premiums for Married Couples Income Bracket in 2021 Income Bracket in 2020 Your Costs in 2021 Less than $176,000 Less than $174,000 $148.50 per month Increased by $3.90 per month ($46.80 per year) $176,000 - $222,000 $174,000 - $218,000 $207.90 per month Increased by $15.50 per month ($66 per year) $222,000 - $276,000 $218,000 - $272,000 $297.00 per month Increased by $7.80 per month ($93.60 per year) $276,000 - $330,000 $272,000 - $326,000 $386.10 per month Increased by $10.10 per month ($121.20 per year) $330,000 - $750,000 $326,000 - $750,000 $475.20 per month Increased by $12.50 per month ($150 per year) More than $750,000 More than $750,000 $504.90 per month Increased by $13.30 per month ($159.60) 2021 Part B Premiums for Married People Filing as Individuals Income Bracket in 2021 Income Bracket in 2020 Your Costs in 2021 Less than $88,000 Less than $85,000 $148.50 per month Increased by $3.90 per month ($46.80 per year) $88,000 - $412,000 $85,000 - $415,000 $475.20 per month Increased by $12.50 per month ($150 per year) More than $412,000 More than $415,000 $504.90 per month Increased by $13.30 per month ($159.60 per year) * Although the premium rates are set by marital status, these values represent how much each individual will pay for Medicare Part B each month. Part B Premiums and Social Security You cannot be expected to pay more for Medicare if there is not also a proportionate rise in Social Security benefits. The holds harmless provision of the Social Security Act protects recipients from paying higher Medicare Part B premiums if those premiums will cause their Social Security benefits to be lower than they were the year before. Simply put, increases in Part B premiums cannot exceed the annual cost of living adjustment (COLA) for Social Security. In those cases, the Medicare Part B premium will be decreased to maintain the same Social Security benefit amount. However, keep in mind that the holds harmless provision does not apply to Medicare Part D. If the Medicare Part D IRMAA increases, a beneficiary may still see a decrease in their overall Social Security benefits. Not everyone is eligible for the holds harms provision. Only people in the lowest income category who have already been on Medicare Part B and have had their premiums directly deducted from their Social Security checks for at least two months in the past year are considered. Beneficiaries new to Medicare and people on Medicaid will be subjected to the current premium rate. The Social Security COLA for 2021 is 1.3%. This is estimated to be an additional $20 per month for the average recipient but the amount could be less. With a $3.90 increase in monthly premiums for 2021, it is unlikely that many people will have their premiums reduced this year. For those who are dual eligible, Medicaid will pay their Medicare premiums. They will be charged the higher Part B premium rates. Part B Premiums and Medicare Advantage You can elect to have Original Medicare (Parts A and B) or a Medicare Advantage plan (Part C). Medicare Advantage plans are offered by private insurance companies and will cover everything that Original Medicare offers and more. Even if you decide on a Medicare Advantage plan and pay premiums to the insurance company, you still have to pay Part B premiums to the government. You must take that added cost into consideration. Part B Coinsurance The Part B coinsurance remains unchanged. Medicare pays 80% and you pay 20% with the exception of preventive screening tests. As long as your doctor accepts assignment, your preventive screening tests will be free. A Word From Verywell The majority of your healthcare will be paid for by Medicare Part B. Likewise, the majority of your out of pocket expenses will relate to Medicare Part B. Knowing what you are expected to pay for deductibles, premiums, and coinsurance in 2021 will help you to budget appropriately. Was this page helpful? Thanks for your feedback! Sign up for our Health Tip of the Day newsletter, and receive daily tips that will help you live your healthiest life. Sign Up You're in! Thank you, {{form.email}}, for signing up. There was an error. Please try again. What are your concerns? Other Inaccurate Hard to Understand Submit Article Sources Verywell Health uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. U.S. Centers for Medicare & Medicaid Services. 2020 Medicare Parts A & B Premiums and Deductibles. Updated Nov 08, 2019. Congressional Research Service. The Interaction Between Medicare Premiums and Social Security COLAs. Updated September 28, 2018. U.S. Social Security Administration. Cost-of-Living Adjustment (COLA) Information. U.S. Centers for Medicare & Medicaid Services. The Official U.S. Government Medicare Handbook. Updated January 2020. Additional Reading Part B costs. Medicare website.