• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Unsworth LaPlante, PLLC

Vermont Estate Planning Attorneys

Vermont: (802) 879-7133

Attend A Free Workshop
  • Home
  • Our Firm
    • About Our Firm
    • Meet Our Team
    • What to Expect When Working with Us
  • Services
    • Estate Planning
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Medicaid Planning & Elder Law
    • Pet Planning
    • Special Needs Planning
    • Trust Administration
    • Young Families Planning
  • Resources
    • Articles
    • Elder Law Reports
    • Elder Law Resources
      • Burlington
      • Montpelier
      • Rutland
      • St. Johnsbury
      • White River Junction
    • Estate And Gift Tax Figures
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Elder Law
        • In-Home Elder Care
        • Medicaid
        • Planning for Long-Term Care
      • Estate Planning
        • Business Succession Planning
        • Estate and Gift Tax
        • Estate Planning for Blended Families
        • Estate Planning for Parents
        • FAQs for Families Without an Estate Plan
        • LGBTQ Estate Planning
        • Taxes on Inheritances in Vermont
      • Incapacity Planning
      • IRA & Retirement Planning
      • Gift, Estate, and Inheritance Taxes
      • Legacy Wealth Planning
      • Philanthropy and Estate Planning
      • Pet Planning
      • Revocable Living Trust
      • Special Needs Planning
      • Trust Administration
      • Trusts
      • Wills
    • Is Your Estate Plan Outdated?
    • Medicaid Resources
      • Medicaid Analysis Worksheet
      • Medicaid Guide
      • Vermont Medicaid
    • Newsletters
    • Presentations
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
    • SECURE Act
    • Top Estate Planning Techniques
  • Webinars/Seminars
  • Reviews
    • Our Reviews
    • Review Us
  • BLOG
  • Contact
Home » 2021 Medicare Cost Increases at a Glance

2021 Medicare Cost Increases at a Glance

December 23, 2020 by Ellen LaPlante

Medicare premiums 2021The Centers for Medicare & Medicaid Services (CMS) has released the premium and deductible increases for 2021. We are going to provide a rundown here, but before we get there, we will explain the Medicare eligibility parameters.

Retirement Credits

A lot of people think that you automatically qualify for Medicare when you reach the age of 65, but this is not the case. You gain eligibility through the accrual of retirement credits, and you accumulate them when you pay payroll or self-employment taxes.

The vast majority of seniors do become eligible because the requirements are modest, and you can qualify on your spouse’s work record if necessary.

In 2020, taxpayers have been earning one retirement credit for every $1410 that they earn. Next year, this figure is going up to $1470 per credit.

The maximum accrual is four credits in a calendar year, and you become eligible after you have 40 credits. This system also applies to Social Security eligibility.

Four Distinct Parts

There are four distinct parts to the Medicare program. Part A is the hospitalization piece, and Part B pays 80 percent of covered treatments that are provided by physicians and other health care providers. You have to pay the other 20 percent out of your own pocket.

Part C allows you to use your benefit to purchase insurance from a private insurer that combines the respective parts. These are called Medicare Advantage Plans, and they also cover some of the gaps in the Medicare coverage.

Medicare Part D is the prescription drug element, and there are many different plans offered by private insurers that have relationships with the Medicare program.

Part A Deductibles and Coinsurance

There is no monthly premium that you have to pay to receive Part A coverage, but there is a deductible per benefit. It is $1408 this year, and when the new year rolls around, it will go up to $1484.

This deductible will cover your out-of-pocket expenses for days one through 60, but there is a coinsurance requirement for subsequent days. The coinsurance is $352 a day in 2020, and it will rise to $371 next year.

Those rates are for days 61 through 90, and after that, you would be using some of your 60 lifetime reserve days. If you tap into that bucket, you are looking at a daily coinsurance payment of $742 a day in 2021, which is a $38 increase.

Part B Premiums and Deductible

As we have stated, you have to pay 20 percent of Part B covered expenses yourself, and there is also a monthly premium for this coverage. The exact amount that you pay is based on your taxable income.

People that are claiming $88,000 a year or less have been paying a standard monthly premium of $144.60 this year. Next year, there will be a very modest increase of $3.90 per month.

It would have been higher, but a provision contained within the Continuing Appropriations Act, 2021 and Other Extensions Act (H.R. 8337) placed a ceiling on the increase. This was done as a response to the economic impact of the novel coronavirus pandemic.

We should point out the fact that a Medicare beneficiary is “held harmless” if the annual Social Security cost-of-living adjustment is less than the Part B increase. The benefit cannot go down under these circumstances.

There will be a 1.3 percent COLA for 2021, and this will exceed the Part B increase.

The deductible for Part B coverage is going up to $203, which is five dollars more than the deductible this year.

Schedule a Today!

If you would like to develop a comprehensive plan for aging that culminates in the appropriate passing of your legacy, we are here to help. You can schedule a consultation appointment if you call us at 802-879-7133, and there is a contact form on this site you can use to send us a message.

  • Author
  • Recent Posts
Ellen LaPlante
Ellen LaPlante
Ellen LaPlante is an attorney whose mission is to provide clients with guidance in Estate Planning, Elder Law, and Medicaid Preparation. She is barred in Vermont and New York. Ellen helps clients put together unique estate plans, including assistance with Trusts, Wills, Powers of Attorney, and Advance Directives. She also works with clients on Medicaid Planning and qualifying for Medicaid assistance.
Ellen LaPlante
Latest posts by Ellen LaPlante (see all)
  • How to Apply for Senior Medicaid in Vermont - December 11, 2022
  • Planning for the “Silver Tsunami” - November 1, 2022
  • Discharge of Indebtedness Income and Student Loan Forgiveness - October 27, 2022

Filed Under: Retirement Planning Tagged With: retirement planning, Medicare cost increases, Elder Law

Other Articles You May Find Useful

Essex Junction elder law attorney
Best Countries for Retirement
Social Security Retirement Benefits – How to Decide When to Retire
Essex Junction estate planning attorneys
How Does Vermont Rank for Retirees?
Essex Junction estate planning attorneys
Practical Retirement Planning Tips
retirement planning
Weigh the Impact of Taxes During Retirement
Social Security reform
Biden Would Like to Reform Social Security

Primary Sidebar

Elder Law and Medicaid Planning Attorneys

Unsworth LaPlante, PLC

DOWNLOAD OUR FREE ESTATE PLANNING WORKSHEET

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube

Blog Subscription

Sign up to Unsworth LaPlante's estate planning blog to receive all the latest news and updates.

  • This field is for validation purposes and should be left unchanged.

Essex Junction, VT

26 Railroad Ave
Essex Junction, VT 05452
United States (US)
Phone: (802) 879-7133
Fax: (802) 879-0408

Map

unsworth_sidbr_map

Office Hours

Monday8:00 AM - 4:00 PM
Tuesday8:00 AM - 4:00 PM
Wednesday8:00 AM - 4:00 PM
Thursday8:00 AM - 4:00 PM

Footer

footer-logo
  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube

The information on this Vermont Attorneys & Lawyers / Law Firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

American Academy of Estate Planning Attorneys, Inc. Privacy Policy | Contact Us | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

© 2023 American Academy of Estate Planning Attorneys, Inc.