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In general, the dollar amounts of these increases are not significant, but paired with inflation, they are still noteworthy to keep on your radar. The affected areas of Medicare benefits include:
📌Part A costs – If you don’t meet the 10-year employment history qualification for receiving a free Part A premium, monthly costs could rise to as much as $499 per month, up from $471. Additionally, if you have no additional coverage to add to basic Medicare, a 60-day hospital stay now costs $1,556, up from $1,484.
📌Part B costs – Part B standard monthly premiums will see their largest jump to $170.12 this year, up from $148.50. This amount will vary based on other aspects such as a “hold harmless agreement” and income-adjusted surcharges (based on your 2020 tax return). Additionally, the Part B annual deductible is now $233, up from $203.
📌Part D costs – The monthly premium for Part D coverage is $33 this year, up from $31.47 (can be higher based on income). Part D deductibles can also vary; however, the maximum is now $480, versus the previous $445. Lastly, the out-of-pocket minimum for high prescription drug costs is now $7,050 this year before enrollees qualify for coverage, which does include manufacturer discounts.
Bottom line: When you get a Social Security increase, you can expect it to be absorbed by Medicare premium increases.