so it is that time of year again we have thanksgiving coming right up we
have christmas right around the corner and we also have the cost increases for medicare
for 2021 i will go over that right now i'm keith armbrecht founder of medicare on video
and i help people across the country in all 50 states make the right medicare choices
and i can absolutely help you as well and the best part about what i do there's no cost to
you to allow me to help you so i certainly hope you'll allow me to help you and we'll make sure
that we get all your medicare pieces in the right places right now we're going to talk about the
cost increases for 2021 on medicare and some of us may feel like this fella here in the middle where
it just keeps on coming i've yet to make a video on cost decreases for medicare so they do go up
every year the good news is they don't generally go up a lot so hopefully we'll keep that pattern
going but obviously your social security payments don't go up a lot either so the offset is usually
pretty minimal when you're looking to hopefully increase your income but we're going to talk about
the cost increases so you understand how they are because that's certainly important there's
always questions after videos i'm happy to help with any of it send me an email give me
a call if you have any questions with medicare i'm happy to help so let's talk about the cost
increases in medicare and what it's actually going to cost you going forward so first we have
the medicare deductibles so when you have original medicare part a has a deductible and part b
has a deductible so what you'll see here is part a right now is fourteen hundred and eight dollars so
if you are admitted into the hospital part a has a fourteen hundred and eight dollar deductible
now the good news is if you have a medicare supplement medicare supplements cover that part a
deductible so you don't actually have a deductible going to the hospital that part a deductible
for 2021 is going to go up 80 per admission so it's 1484 per admission that's how that hospital
deductible works is every time you go in the hospital for a different condition or outside
of a 60-day window you can have a new deductible so that's one reason you definitely want to have
a medicare supplement plan because it can be a big out of pocket expense so part b which is for stuff
that goes on outside of the hospital much smaller deductible right now it's 198 dollars next year
2021 it's going to go to 203 so you know not a big deal it's going up five bucks from 2020 to 2021
and most supplement plans do not cover that part b so that is your out-of-pocket expense and if
you have a plan g that's your only out-of-pocket expense for the entire year so certainly something
to understand when we're working getting our medicare supplement plan in place that we're
going to know our out-of-pocket cost so not really too bad in that area now we're going to now talk
about the premiums for medicare and that is where it kind of offsets your social security increase
and that's what most people feel like that fella in the front of the video feels when
they get their notice in the mail for how much they're gonna get an increase in social security
and then how much their medicare premiums are gonna increase and usually again it's pretty
close to the same so part a there's generally no premium for most people there's no premium
and that is as long as you have worked 40 quarters in other words 10 years and the reason there's no
premium because you've been paying tax on medicare you've been paying a medicare tax every paycheck
for your pretty much your entire life and now that's going to cover your medicare part a premium
i'm going to show you in just a second the cost if you have not worked 40 quarters and what it would
actually cost you out of pocket now part b this does come out of your social security generally
so it's if you're drawing social security this is going to come out of your social security check
if you're not drawing social security and you have part b they're going to bill you
quarterly so make sure you understand that too if you're not having it taken out of your
social security check they're going to send you a bill it's going to be for three months at a
time so you want to make sure you take that into consideration right now it's 140 460 and it's
going to go to 148.50 again not a huge increase but it's an increase and again your social
security generally doesn't get a huge increase either so a lot of times it can pretty much offset
now if we're talking about part a and how much it would cost if you did not work 10 years previously
and this can be for your spouse as well so if your spouse had worked that period of time you
are included with that spouse as well so you can see here the difference between if you only work
30 39 quarters or less than 30 quarters this is what you'll actually pay for your medicare part
a now let's take a closer look into part b because part b is income adjusted so if you are
having higher than i don't even want to say average income but the threshold where there is
no increase then you're going to pay more for your part b and the way this works on income
based increases is it is a two-year look back so they only have access to taxes from two years
ago so obviously they don't have access to what you're currently making so they look two years
ago so if it's 2021 they're looking at your 2019 tax return and your maggie your adjusted gross
income on your tax return you can see here if it is on an individual basis 88 000 or less or on a
joint basis 176 000 or less then you're going to pay the standard medicare part b premium you can
go down the list here and see if your income is in a higher bracket what it will do to your medicare
part b premium and again this is two years back now a lot of times folks will have higher income
two years ago and now they're retiring so it is something you can appeal and i have the forms
on my website if you go to medicareonvideo.com go into the guides and form section it's called irma
adjusted rate monthly adjustment something like that and i have that form i have the brochure i
have the appeal form right on my website feel free to go grab it there you can download it
it's easy to do there's another page to this so if you make a lot more money it's going to get
much higher so if you had individual income of 500 000 or above joint income of 750 or above
your medicare part b premium in 2021 instead of that small amount is going to be 504.90 and if
you're married that's for both of you so it's gonna be over a thousand dollars a month for
the two of you so make sure you understand that if you need to appeal it appeal it if you have
any questions give me a call i'm happy to help with any of it and then we also have part d this
is for medicare drug plans if you get a medicare drug plan if you're on original medicare you get a
medicare supplement you're probably going to get a medicare drug plan a basic medicare drug plan
costs about 20 bucks a month now if you have this same income adjustment and it's the same as part b
so this is on the drug plan so you'd have that whatever your premium is for your part d and if
you make the 88 or the 176 or less there's no increase to it if you have higher income than
that you can see the increases here to that part d premium so again it can be significant if you are
a higher earner and again it's a two year look back the same as it was on medicare part b so
those are our cost increases for 2021. never a good fun video to talk about but we absolutely
want to understand it so we can manage it as best we possibly can i'm happy to help with any of this
and again that's what i do is i help people across the country make the right medicare
choices no cost to you to allow me to help you so i hope you will allow me to help you the way
i'm compensated some people ask how do you make a living doing this whatever medicare supplement
plan we choose whichever insurance carrier we choose to go with they pay me a little to be your
service agent now and in the future so i'm there for you not only right now to make these decisions
but when things come up in the future i'm there to walk you through it or help you manage it and make
sure we continue with the best value so i don't work for any particular insurance carrier i'm a
broker so i can choose anything that's available so i make sure we make the right choice
coming in and then we manage it as we go so i hope you found this helpful have a fantastic day