Good News, Seniors: Medicare Premium Increases May Be Capped for 2021
If there's one expense that tends to increase for seniors from one year to the next, it's healthcare, and that extends to Medicare. While Medicare Part A, which covers hospital care, is free for most enrollees, Part B, which covers outpatient services, charges a monthly premium that changes annually. Currently, the standard monthly Part B premium is $144.60, though higher earners pay more. But there's a chance those premiums could rise come 2021.
That's bad news for seniors, because any Part B premium increase could eat into their income or Social Security benefits. While an official Social Security raise won't be announced until later in the month, initial estimates are calling for a 1.3% cost-of-living adjustment (COLA), which is better than the nonexistent COLA some were predicting early in the year, but not a huge increase either.
Back in April, the Medicare trustees predicted that the standard Part B premium would jump to $153.30 in 2021, representing a 6%, or $8.70, monthly increase. But those estimates didn't take the coronavirus crisis into account. The extent to which Part B premiums go up depends on a specific formula that takes different costs into consideration. Calculating that increase will be tricky this year, since Medicare spent more on treating coronavirus patients, but also spent less due to seniors delaying preventive care.
Source Fool.com
