How much will you pay for Medicare Part B in 2021?
Medicare Part B is your Medicare outpatient coverage. Even if you worked and paid Medicare taxes for 40 quarters, and are eligible to receive Medicare Part A with no premium charge, you still do have a premium with Medicare Part B.
Confused about your Medicare coverage options? Watch our free video: How to Find the Best Medicare Coverage Without Paying More Than You Need To…
If you receive Social Security, your Medicare Part B premium is automatically taken out of your Social Security deposit. If you do not receive Social Security yet, you will receive a bill from Medicare for your Part B premium.
How much will you pay?
Most people pay the standard Medicare Part B premium, which in 2021 is $148.50 a month. If your modified adjusted gross income as reported on your IRS tax return from two years ago is above a certain amount, you’ll pay the standard premium plus an Income Related Monthly Adjustment Amount, otherwise known as IRMAA. IRMAA is an extra charge that gets added to your premium.
You can see on the chart here what extra fee is associated with what income level. Your IRMAA can be adjusted every year. It’s all dependent on the tax returns from two years ago, so if your income changes, your IRMAA also changes.
Late Enrollment Penalties
There are a couple other potential complications with Medicare Part B premiums. If you didn’t get Medicare Part B when you were first eligible, your monthly premium may go up by 10% for each 12-month period that you could have been covered by Medicare Part B but were not. In most cases, you’ll have to pay this penalty each time that you pay your premiums for as long as you have Medicare Part B.
Usually, you don’t pay a late enrollment penalty if you meet certain conditions that allow you to sign up for Part B during a special enrollment period. The most common situation where this comes up is if you’re working past age 65 and are staying on your group health plan. Your HR manager will be able to tell you if your group coverage is considered creditable coverage by Medicare. If it is, then you don’t need to enroll in Medicare Part B until you are ready to leave your group health coverage.
I have another video that explains more in detail the situation of working past age 65. If you’re concerned about Medicare Part B enrollment timing, please feel free to give us a call, 877-312-1414, or talk to your benefits manager at work to find out if your coverage is considered creditable coverage by Medicare.
Low Income Extra Help
If you have low income, you may be able to get help from your state to pay your Medicare premiums. In some cases, Medicare savings programs may also pay Medicare Part A, which is your hospital insurance, and Medicare Part B, deductibles, co-pays, and coinsurance amounts. These programs get a little bit complicated, so I am going to include a link to more information.
As always, if you have any questions about this topic, or if you would like more information on Medicare plans available in your area and in your situation, please feel free to reach out. You can email me or call 877-312-1414.
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