As we enter 2021, it’s helpful to seek Medicare help in New Jersey so that you know what your Medicare premiums will look like. This is the time in your life when you need your insurance to be both comprehensive and affordable.
Part A Premium in 2021
Part A is free for most people. If you’ve worked 10+ years in the U.S., you’ve already paid for Part A via your payroll taxes. If you have to buy Part A, you’ll pay around $471 a month. People with less than 10+ years of working experience may be eligible for prorated premiums.
As far as the deductible and insurance, you pay $1,484 deductible for each benefit period. This is $76 more than it was in 2020. So, if you need to stay in the hospital, your Part A deductible will be $1,484. However, if you have a Medigap plan, it will likely cover these costs for you.
Part B Premium in 2021
Medicare Part B premiums are based on your modified adjusted gross income. The Social Security office will use your IRS tax return from two years prior. Off this information, they’ll determine how much you will pay for Part B. Part D premiums are also based on income.
The items that contribute to your modified adjusted gross income are money earned from wages, interest, dividends from investments and capital gains. If you file jointly with your spouse, your premiums are based on your married income. However, you will each pay your own Part B premium.
Part B premiums will increase for 2021. Here is what they will look like (based on 2019 income). We also added Part D premiums for your reference.
Most people new to Medicare will pay nothing for Part A and $148.50 for Part B in 2021. This is the standard amount that people pay based on their income. But if you are a high earner, you will pay more for your premiums. Because this can be confusing, it’s helpful to speak with a financial planner in New Jersey.
At Leonard Financial Solutions, we’ll figure out exactly what your Medicare costs will be. Many people find that Medicare and supplemental costs are a bit less than the private insurance they had. And most people are satisfied with their coverage. Schedule a consultation with us today and we’ll be happy to assist you in finding the best coverage for your needs and budget!