Healthcare costs rise more each year, and to make up these costs, premiums and deductibles for Medicare also increase. While some premiums and deductibles will cost more, the biggest change is that new enrollees won’t have access to some older plans.
The good news with these changes is that federal policymakers have adjusted coverage to allow comprehensive, affordable coverage due to the coronavirus (COVID-19).
Medicare Part A
Medicare Part A is the part of Medicare that pays for hospitalization, nursing home, and some home healthcare costs. Most people do not pay a premium for Medicare Part A because they prepaid for their coverage throughout their working years. For those who do pay, premium costs have gone up for 2021. The deductible for each benefit is also increasing.
Medicare Part B
Medicare Part B covers physician fees, outpatient services, some home health services, medical equipment, and some medications. The increase in premiums and deductibles is lower in 2021 than they were in 2020.
Medicare Part C
Medicare Part C, or Medicare Advantage, combines the elements of Medicare Part A and Part B, plus additional services not covered under those two plans. Since costs for these plans are set by private companies, not much changed this year at the federal level. However, there was one major change that goes into affect this year for people who have end stage renal disease (ESRD).
Medicare Part D
Medicare Part D is known as the prescription drug plan for Medicare. Like Medicare Part C, Part D plan costs vary by provider, and premium costs are adjusted based on your income. One big change in 2020 was the closing of the “donut hole.” The donut hole was a gap in the plan’s prescription drug coverage that occurred once the plan had paid out a certain amount for prescription medications for the year.
Medicare supplement (Medigap)
Medicare supplement or Medigap plans are Medicare plans that help you pay for a portion of your Medicare costs. These supplements can help offset the costs of premiums and deductibles for your Medicare coverage. Plans are sold by private companies, so rates vary. In 2021, under Plan G, Medicare covers its share of costs, and then you pay out-of-pocket until you have reached a $2,370 deductible. At that point, Plan G will pay for the remainder of costs.
While Medicare premiums and deductibles have increased across the board in 2021, there are other ways you can save money. Your Ohio Health Benefits team is always here to discuss your current plan and compare that plan to any other plan you may hear about. Call us toll free at (866) 235-8378 or click here to email us your name and phone number for us to call you. Calls are not recorded and your information is confidential.
Ohio Health Benefits also offers Medicare & Muffins, a free educational seminar to help you understand how Medicare works. These seminars are free and open to the public every Wednesday at 9 am and Thursday at 3pm. For details and registration link click here.