Almost all Americans 65 and older turn to Medicare for help paying for health care. Traditional Medicare relies on two components: Part A coverage for hospital and hospital care and Part B coverage for medical appointments and outpatient treatment.
Every year, changes in Medicare affect those who rely on the program for their financial security during their retirement years. Let’s take a look at the latest for Part B in 2021.
Medicare Part B Coverage
Medicare Part B covers most of the care you do not need to be admitted to a hospital or other treatment facility. This includes routine visits to the doctor, as well as outpatient surgery. You will also turn to Part B for a range of needs ranging from medical equipment and ambulance transportation to diagnostic tests and treatment for mental health problems.
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Part B covers a few different types of care. Clinically necessary conditions are usually covered, with services used to help detect, diagnose and effectively treat a medical condition or illness. However, there are also preventive care services that fall under Part B, including an initial intake when you turn 65 and annual exams to monitor and make sure you are still healthy.
Medicare Part B is not fully comprehensive in coverage. Many older patients need dental care, eye exams for glasses or contact lenses and hearing aids, and Part B generally does not cover this. In addition, some less universally accepted treatment options do not qualify for Medicare reimbursement, and you must cover these costs.
Medicare Part B costs are rising in 2021
To obtain Part B, you must pay monthly premiums. Most people will pay $ 148.50, which represents an increase of $ 3.90 per month over 2020. The increase would have been significantly greater had it not been for a special legislative provision that Congress passed to limit the increase.
Medicare analyzes your income two years earlier to decide whether you need to pay higher monthly premiums for Part B. The table below shows the income levels that correspond to 2019 income, when determining Part B premiums for 2021. You can up to $ 504.90 in monthly prizes.
|
For individuals with this income: |
Or joint filers with this recipe: |
The total monthly premium in 2020 will be: |
|---|---|---|
|
$ 88,000 to $ 111,000 |
$ 176,000 to $ 222,000 |
$ 207.90 (up to $ 5.50) |
|
$ 111,000 to $ 138,000 |
$ 222,000 to $ 276,000 |
$ 297 (up to $ 7.80) |
|
$ 138,000 to $ 165,000 |
$ 276,000 to $ 330,000 |
$ 386.10 (up to $ 10.10) |
|
$ 165,000 to $ 500,000 |
$ 330,000 to $ 750,000 |
$ 475.20 (up to $ 12.50) |
|
More than $ 500,000 |
More than $ 750,000 |
$ 504.90 (up to $ 13.30) |
Data source: Medicare and Medicaid Service Centers. Note: Married people who filed a separate application who lived together at any time of the year pay $ 475.20 if their income is $ 88,000 to $ 412,000, or $ 504.90 if their income is more than $ 412,000.
There are also two other things that Medicare Part B participants must pay for. First, a $ 203 deductible applies in 2021, which is $ 5 higher than it was in 2020. You will need to pay that amount before Part B coverage starts paying your installment. In addition, Medicare covers only 80% of the costs of most items. You need to pay the other 20%.
Be smart with your health
To stay healthy, you will need medical assistance in retirement, and Medicare Part B is a key part of making it affordable. What you pay for coverage can prevent you from facing bills you could never pay without – so make sure you know everything you are entitled to receive from the federal program.