Medicare, Medicare Advantage, and Medicare Supplements in 2021: Changes to Expect for The Year
Each year, the Centers for Medicare and Medicaid Services (CMS) revises its guidelines for coverage to make way for inflation and the changing demands of the times. That said, seeing changes to how much is covered for a certain healthcare services (or if that something is still even going to be included at all) shouldn’t be much of a surprise. Still, we need to keep ourselves updated of such shifts so that we know what our entitlements are for the year. Typically, the changes would involve the cost of premiums, level of coverage, and deductible and coinsurance amounts. Here’s what’s new for Medicare, Medicare Advantage, and Medicare Supplements for 2021.
Standard Medicare Premiums
In 2021, standard monthly premiums for Medicare part B (medical) will increase by $3.90. This is good news, especially that the CMS predicted a more or less $50 per month rise in consideration of the unexpected expenses when the pandemic broke out. Fortunately, the US Congress decided to help and offset the projected increase, finally placing 2021 premiums at $148.50 monthly, instead of the nearly $200 originally planned.
Medicare Part A premiums are also rising to $471 in 2021, though many citizens actually quality for premium-free coverage. Most people do not need to pay for Part A because they already paid the Medicare tax during their working years (those who worked more than 40 quarters). Those who paid 30 to 39 quarters in tax will need to shell out $259 per month for Part A in 2021(up by $7 from $252 in 2020), while those who have not paid a minimum of 30 quarters will be billed $471 monthly (from $458 in 2020).
Medicare Deductibles 2021
The deductible amount for Part A will rise by $76 to $1,484 in 2021, while the monthly Part B deductible will be up by only $5 to $203.
Medicare and Acupuncture
Good news for those who undergo alternative health treatments: Medicare now covers up to 12 acupuncture visits within a 90-day period for people who suffer from chronic low back pain only. Medicare defines chronic low back as follows:
- Pain that lasts over 12 weeks
- Pain that has no known cause (not related to an infectious disease, inflammatory condition, or cancer that has spread)
- Pain that’s not related to pregnancy or surgery
If you show improvement, Medicare will cover an additional eight sessions. However, if your physician says that your ailment is getting worse or isn’t showing signs of improvement, then there will no extension of coverage. The maximum number of acupuncture treatments you can get in a year will be 20.
Medicare Advantage 2021: Lower Fees and More Choices
The CMS announced that Medicare enrollees will have more than 4,800 Advantage policies to choose from during the 2021 open enrollment period—which takes place from Oct 15 to Dec 7 annually. OEP is the time when beneficiaries are allowed to make changes to their current coverages for the next year. Additionally, the prices for monthly Medicare Advantage premiums have been adjusted to a historic low. For 2021, they are generally expected to drop by $21 across the country (the lowest since 2007).
Aside from huge price drops for Advantage plans, Medicare is also now offering more extensive telehealth services (in response to the changing needs due to the global pandemic). Telehealth benefits enable beneficiaries to obtain services that generally occur in person (like consultations with a health care provider or doctor) using real-time video and audio technology. This doesn’t just apply to general healthcare consults but also include specific areas such as cardiology dermatology, and psychiatry among others. Other similar channels that Medicare now recognizes are online services, like virtual check-ins and e-visits.
ESRD Needs and Insulin Coverage
Patients who have been diagnosed with End-Stage Renal Disease (ESRD) can also join an Advantage plan during Annual Election Period. Policy coverages will begin on January 1, 2021.
Also, if you are part of Medicare plan that takes part in the Part D Senior Savings Model, you can save on out-of-pocket expenses for insulin in 2021. This model is available to everybody who has Medicare. Plans that are part of it will offer a range of coverage options that include different types of insulin at a maximum copayment of $35 for a 30-day supply. Those who enroll in a partner plan can save as much as $446 annually.
Medicare Supplement (Medigap) 2021
As of January 1, 2020, all Medicare Supplement plans sold to new Medicare enrollees can no longer cover the Part B deductible. In response to this, Plans C and F will not be sold to new enrollees from the said date. This remains unchanged in 2021.
One other change to Medigap in 2021 is on the Plans F and G, which both offer high deductible versions, HDF and HDG. For the year 2021, the deductible amount will go up $30 to $2,370. Once you hit the deductible amount, your policy will cover any expenses for Medicare-approved services.
Bottom Line on Medicare in 2021
With the many changes happening to Medicare in 2021, the Medicare Annual Election Period becomes even more important as it gives you a chance to review your existing coverage and see if you need to make any changes for the next year. If you are currently on Medicare it’s imperative that you review these choices with a qualified Medicare insurance broker like those here at SecureCare65 annually.
We Can Help with your Medicare Questions.
If you need more information and guidance related to the 2021 Medicare changes, our team of Medicare specialists can help give you a clearer picture. Don’t hesitate to get in touch with us at 800-354-1078.
