Nearly every American aged 65 or older turns to Medicare for help paying for health care. Traditional Medicare relies on two components: Part A coverage for hospital and inpatient care, and Part B coverage for doctor visits and outpatient treatment.
Changes to Medicare each year affect those who rely on their 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
Part B of Medicare covers most of the care you provide not should be admitted to a hospital or other treatment facility. This includes routine doctor visits as well as outpatient surgery. You will also go to Part B for a number of needs ranging from medical equipment and ambulance transport to diagnostic testing and treatment for mental health issues.
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Part B covers a few different types of care. Medically necessary conditions are usually covered, with services used to detect, diagnose and effectively treat a medical condition or disease. However, there are also preventative care services that fall under Part B, including an initial intake when you turn 65 and annual checkups to follow up and make sure you are still healthy.
Part B of Medicare is not comprehensive. Many older patients require dental care, eye exams for glasses or contact lenses, and hearing aids, and Part B usually does not cover them. In addition, some less commonly accepted treatment options do not qualify for Medicare reimbursement, and it is up to you to cover the costs.
The cost of Medicare Part B is higher in 2021
To get Part B, you have to pay monthly premiums. Most people pay $ 148.50, which is $ 3.90 per month higher than in 2020. The increase would have been significantly higher if it were not for a special legal provision passed by Congress to limit the increase .
Medicare looks back at your income two years to decide if you should pay higher monthly premiums for Part B. The table below shows the income levels that correspond to the 2019 income in determining Part B premiums for 2021. You can owe as much as $ 504.90. in monthly premiums.
|
For individuals with this income: |
Or shared files with this income: |
Total monthly premium in 2020 will be: |
|---|---|---|
|
$ 88,000 to $ 111,000 |
$ 176,000 to $ 222,000 |
$ 207.90 (with $ 5.50) |
|
$ 111,000 to $ 138,000 |
$ 222,000 to $ 276,000 |
$ 297 (with $ 7.80) |
|
$ 138,000 to $ 165,000 |
$ 276,000 to $ 330,000 |
$ 386.10 (higher $ 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 (with $ 13.30) |
Data source: Centers for Medicare & Medicaid Services. Note: Married individuals in separate custody who lived together at any time during the year pay $ 475.20 if their income is $ 88,000 to $ 412,000, or $ 504.90 if their income exceeds $ 412,000.
There are also two other things that participants in Medicare Part B have to pay for. First, a deductible amount of $ 203 applies in 2021, which is $ 5 higher than in 2020. You must pay the amount before Part B coverage starts paying its share. Medicare also covers only 80% of the cost for most items. You have to pay the other 20%.
Be smart about your health
To keep you healthy, you need health care during your retirement, and Medicare Part B is an important part of making it affordable. What you pay for coverage can save you on bills you can never pay without it – so make sure you know everything you receive from the federal program.