Medicare uses the modified adjusted gross income reported on your IRS tax return from 2 years ago. This is the most recent tax return information provided to Social Security by the IRS. The standard Part B premium amount in 2021 is $148.50. Most people pay the standard Part B premium amount. 2021 Part D IRMAA for Married People Filing as Individuals; Income Category: Your 2021. Change from 2020: Less than $88,000 (Less than $87,000 in 2020) $0 per month: $0 increase per month. $88,000 - $412,000 ($87,000 - $413,000 in 2020) $70.70 per month. $848.40 per year. $0.70 decrease per month. $10.80 savings per year. More than $412,000.

Medicare Advantage plans offer the ability to receive the same benefits as Original Medicare, but from a private insurer.

However even with the added flexibility that Medicare Advantage plans provide, you may still be responsible for out-of-pocket costs, including copays.

A Medicare copay is the amount of money you're required to pay for a covered Medicare service or good. A copayment is typically a flat fee.

• Even under Medicare Advantage, you must still pay your Part B premium (unless your plan helps pay for it). The standard Part B premium in 2021 is $148.50 per month.
• For 2021, the Medicare Part B monthly premiums and the annual deductible are higher than the 2020 amounts. The standard monthly premium for Medicare Part B enrollees will be $148.50 for 2021, an increase of $3.90 from $144.60 in 2020.
• Medicare pays the rest. Starting on day 151 Medicare pays nothing. Medicare Part A also pays 100% of days 1-20 in a skilled nursing facility (rehab center). If you stay longer than 20 days your copay is $185.50 per day for days 21-100. Medicare pays after the copay has been satisfied.

Why Medicare Advantage?

In 2020, more than 34 percent of Medicare beneficiaries were enrolled in a Medicare Advantage plan.¹

Many are likely drawn to the unique benefits of Medicare Advantage, as compared with Original Medicare:

• Medicare Advantage plans may often include additional benefits for prescription drugs, dental care, and vision care.
  
• The average premium for a Medicare Advantage plan that offers prescription drug coverage is $33.57 per month in 2021.² Some plans may not have a monthly premium, and some may even help pay you back for your Medicare Part B premium.
  
• Medicare Advantage, unlike Original Medicare, comes with an out-of-pocket limit, which means your out-of-pocket spending will be capped.
  
• While plans are offered by private insurers, you are still guaranteed the benefits of Original Medicare.

Medicare Advantage costs

Medicare Advantage out-of-pocket costs can include:

• Medicare Part B premium
  Even under Medicare Advantage, you must still pay your Part B premium (unless your plan helps pay for it). The standard Part B premium in 2021 is $148.50 per month.
  
• Deductibles
  Some plans require you to meet a deductible when seeing doctors, visiting hospitals, or getting your drugs filled.
  
• Medicare copay
  Many Medicare Advantage plans require that you pay a copay when you see a doctor. This is a fixed cost — and an alternative to Original Medicare’s 20 percent coinsurance.
  
• Premiums
  As noted above, the average monthly premium for Medicare Advantage plans with drug coverage is $33.57 per month in 2021.

Note: these costs may be higher (or lower), depending on your plan.

Compare Medicare plan costs

As you compare your options, you should weigh the costs of Medicare Advantage against the additional benefits you may receive, as compared to staying with Original Medicare.

Read additional medicare costs guides to learn more about Medicare costs and how they will affect you.

Or call 1-800-557-60591-800-557-6059TTY Users: 711 to speak with a licensed insurance agent. We accept calls 24/7!

Medicare Copays For 2021

Medicare Snf Copay 2021

¹ Jacobson, G., et al. (Oct. 24, 2019). Medicare Advantage 2020 Spotlight: First Look. Kaiser Family Foundation. Retrieved from www.kff.org/medicare/issue-brief/medicare-advantage-2020-spotlight-first-look.

2021 Medicare Premium Income Brackets

² MedicareAdvantage.com's The Best States for Medicare in 2021 report. (Oct. 27, 2020).