Medicare’s monthly Part B premium for outpatient care will increase by $ 3.90 to $ 148.50 next year, officials said late Friday afternoon.
For most retirees, the increase in healthcare costs will take up a significant portion of their Social Security Adjustment (COLA). It equates to nearly 20% of the average retiree’s COLA of $ 20 per month for the next year.
The bite could have been deeper. It was feared that emergency government measures to stabilize the health system in the coronavirus pandemic could have triggered large premium increases. This prompted Congress to pass a bipartisan bill capping the increase for 2021 but later gradually collecting the full amount as part of a repayment mechanism.
The Part B premium is set by law and covers approximately 25% of the cost of Medicare supplementary insurance for outpatient services. Inpatient care is covered by Medicares “Part A”, which is financed with income taxes from employees and employers.
Medicare also announced that the Part B deductible will be $ 203 next year, an increase of $ 5. The deductible is the amount patients pay each year before they start their insurance.
The inpatient deductible is $ 1,484, an increase of $ 76.
Most Medicare beneficiaries rely on supplementary insurance or a Medicare benefit plan to cover their annual deductibles.
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