2021 Original Medicare Costs
Medicare Part A (Hospital Insurance) Costs
Part A monthly premium
Most people don't pay a Part A premium because they paid Medicare taxes while working. If you don't get a premium-free Part A, you pay between $259.00 - $471.00 (in 2021) per month depending on how long they or their spouse worked and paid Medicare taxes.
Part A Hospital Inpatient Deductible and Coinsurance
The Part A hospital deductible is $1,484.00 for each benefit period
Days 1-60: $0 coinsurance for each benefit period
Days 61-90: $371 coinsurance per day of each benefit period
Days 91 and beyond: $742 coinsurance per each "lifetime reserve day" after day 90 for each benefit period (up to 60 days over your lifetime)
Beyond lifetime reserve days: all costs
Medicare Part B (Medical Insurance) Costs
Part B monthly premium
Most people pay the standard Part B premium amount ($148.50 in 2021). Social Security will tell you the exact amount you'll pay for Part B. However, if your modified adjusted gross income as reported on your IRS tax return from 2 years prior is above a certain amount, you'll pay the standard Part B premium and an income-related monthly adjustment amount.
Based on your income, here's what you'll pay for Part B in 2021
If you file an individual tax return and earn:
$88,000 or less, you will pay $148.50/mo
more than $88,000 up to $111,000, you will pay $207.90/mo
more than $111,000 up to $138,000, you will pay $297.00/mo
more than $138,000 up to $165,000, you will pay $386.10/mo
more than $165,000 up to $500,000, you will pay $475.20/m0
above $500,000, you will pay $504.90/mo.
If you file a joint tax return and earn:
$176,000 or less, you will pay $148.50
more than $176,000 up to $222,000, you will pay $207.90/mo
more than $222,000 up to $276,000, you will pay $297.00/mo
more than $276,000 up to $330,000, you will pay $386.10/mo
more than $330,000 up to $750,000, you will pay $475.20/mo
above $750,000, you will pay $504.90/mo.
If you file married & separate and earn
$88,000 or less, you will pay $148.50
more than $88,000 up to $412,000, you will pay $475.20/mo
above $412,000, you will pay $504.90/mo
The Part B deductible is $203.00 per year.
After your deductible is met, you typically pay 20% of the Medicare-approved amount for most doctor services (including most doctor services while you're a hospital inpatient), outpatient therapy, and Durable Medical Equipment (DME)
As you can see, even after paying the premium and deductibles, original Medicare (Part A & Part B) can leave you financially vulnerable. This is where Part D (Prescription Drug Coverage), Part C (Medicare Advantage Plans), and Medigap (Medicare Supplemental Insurance) can come in handy.