Medicare is generally affordable, but costs often increase by a small amount every year. 2021 is no different. There are 4 parts of Medicare: Parts A, B, C, and D. Parts A and B are managed by the federal government, specifically the Centers for Medicare and Medicaid Services (CMS). Parts C and D are offered by private insurance companies, meaning that their rates are dependent on private companies. Read on to learn more about how to budget for Medicare in 2023.
Cost of Part A
Medicare Part A is the part of Medicare that covers inpatient costs. People who have paid 40 quarters in taxes (10 years) do not have to pay a monthly premium for Part A. The other costs of Part A are below.
Monthly premium = $0/$278-$506 if taxes were not paid
Annual Deductible: $1600 for each benefit period (60-day window)
Inpatient Costs
- Day 1-60 Coinsurance: $0
- Days 61-90: $400 per day
- Day 91 and after $800 per day
Skilled Nursing Facility Coinsurance Days 21-100: $194.50
Cost of Part B
Part B does have a monthly premium which is also increasing in 2023. The new 2021 costs are:
Monthly premium (2023): $164.90
Deductible: $226
After you meet the deductible, Medicare covers 80% of the cost and you have to pay the remaining 20%. This policy is unchanged in 2023.
Cost of Part C
Medicare Advantage Plans, also called Medicare Part C, is an addition to Medicare that covers additional benefits like vision, dental, and hearing needs. These plans are offered by private companies. In 2021, more people are expected to enroll in Medicare Advantage Plans. This means that the overall monthly cost is expected to go down by 34.2%. In fact, the Medicare Advantage monthly premium average will be the lowest it has been since 2007.
Cost of Part D
Part D is an optional portion of Medicare that covers prescription medications. In 2023, the costs of Part D include:
Annual deductible: $505
The cost of the plan depends on the company and the plan itself. In 2023, the average cost will be $43 per month. The actual cost of the prescription depends on the prescription itself and the hospital system.
Questions About Medicare?
Budgeting for Medicare can be tricky. You have to understand your health, anticipate your medical needs for the year, and choose plans that make sense for you. A qualified agent can help you understand these big details and guide you through big decisions. Contact Temmen Insurance for all of your Medicare needs today.