- The Part B premium will increase to $148.50 in 2021, up from $144.60 in 2020. Congress held down this cost in a spending bill passed earlier this year.
- The annual Part B deductible is increasing to $203, up from $198 in 2020.
- Many Medicare beneficiaries are unaware that higher income levels can trigger possibly lofty surcharges added to their premiums. It takes planning to keep these costs down.
Any day now, if you are on Medicare, you will get a letter from the Centers for Medicare & Medicaid Services informing you of your new premium and deductible costs for 2021. If you planned well in 2019, your costs should be going up only slightly.
But if you planned poorly, you may be meeting up with IRMAA, the Income-Related Monthly Adjustment Amount, which adds a surcharge to your Medicare Part B and D premiums. These surcharges can be lofty, so it’s smart to plan ahead to limit these costs.