What will change about Medicare in 2021?

Each year, the Centers for Medicare and Medicaid Services (CMS) release updates about changes to the Medicare system, including:

• Premiums
• Deductibles
• Coverage
• Coinsurance

Those who use Medicare or are planning to use Medicare soon may be wondering what changes the CMS is making in 2021. Take a look below at the changes CMS is making to the different Medicare plans in 2021 that may affect you.

If you have never applied for Medicare and are wondering which plan is right for you, please take a look at our article exploring the differences between each Medicare plan. If you are ready to see what changes are being made to these plans in 2021, please take a look below for a brief overview of what to expect:

• Medicare A — This covers hospital stays, and most people qualify for this without any cost. However, if one doesn’t qualify, then Medicare A premiums have increased to $471. 

• Medicare B — Medicare B covers doctor and testing costs, and the premiums have increased to $148.50 and have a $203 deductible. It is also now covering acupuncture treatments.
  
• Medicare C — Medicare C plans, often referred to as Medicare Advantage plans, have dropped to historically low premiums, averaging 34.2% lower than the previous historical low of 2017.
  
• Medicare D — Medicare D covers drug costs, and the plans now have lower premiums and cover insulin for $35 per month.
  
• Medicare F & G — Medicare F & G plans cover costs of coinsurance, copayments and deductibles after reaching the deductible amount of $2,370 in 2021. These are referred to as Medicare Supplement or Medigap plans.Medigap plans no longer cover the Medicare Part B deductible. Talk to a ProVise CFP® professional about fitting Medicare into your financial plan.

Keeping up with the constant changes of Medicare can be frustrating, especially when you are just trying to focus on enjoying your retirement. Navigating the complex fiduciary landscape of medicare and other aspects of financial planning should not be a burden when you are retired or preparing to retire. At ProVise Management Group, our team can work closely with you to help you save for the right Medicare plan, make smart retirement withdrawal decisions and supplement your retirement income.

Our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.

Are you ready to talk to a professional about your retirement planning? Contact ProVise today to schedule a complimentary consultation.