What will one’s NET Social Security increase be in 2021? - CMS & AMAC

Medicare and Social Security are so intertwined that a common question we here at The AMAC Foundation get is this: “what will my net Social Security increase be?”  That is, people seek to know how their monthly check will increase after the cost of living adjustment and the hike in Medicare premiums.

The Centers for Medicare and Medicaid Services (CMS) announced on Friday, November 6th, the 2021 premiums, deductibles and coinsurance amounts for Medicare Part B and Part A .  Medicare Part B covers physician services, outpatient hospital services, certain home health services, durable medical equipment, and certain other medical and health services not covered by Medicare Part A. 

The standard monthly premium for Medicare Part B enrollees will be $148.50 for 2021, an increase of $3.90 from $144.60 in 2020. The annual deductible for all Medicare Part B beneficiaries will be $203 in 2021, an increase of $5 from the annual deductible of $198 in 2020.

Since 2007, a beneficiary’s Part B monthly premium is based on income. These income-related monthly adjustment amounts affect roughly seven percent of people with Medicare Part B.

Medicare Part A covers inpatient hospital, skilled nursing facility, and some home health care services. About 99 percent of Medicare beneficiaries do not have a Part A premium since they have at least 40 quarters of Medicare-covered employment.

The Medicare Part A inpatient hospital deductible that beneficiaries will pay when admitted to the hospital will be $1,484 in 2021, an increase of $76 from $1,408 in 2020. The Part A inpatient hospital deductible covers beneficiaries’ share of costs for the first 60 days of Medicare-covered inpatient hospital care in a benefit period. In 2021, beneficiaries must pay a coinsurance amount of $371 per day for the 61st through 90th day of a hospitalization ($352 in 2020) in a benefit period and $742 per day for lifetime reserve days ($704 in 2020). For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care services in a benefit period will be $185.50 in 2021 ($176.00 in 2020).

For more information about Medicare Part A and Part B go to the CMS newsroom at: https://www.cms.gov/newsroom .

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