2021 ​Medicare Costs

Medicare Part A (Hospital Insurance) Costs

Monthly premium:
  • No charge for most people with at least 40 work quarters (sometimes called “premium-free Part A”)
  • $471 each month for people who paid Medicare taxes for less than 30 work quarters
  • $259 each month for people who paid Medicare taxes for 30–39 work quarters
Part A late enrollment penalty: If you don’t buy it when you’re first eligible, your monthly premium may go up 10%. You’ll have to pay the higher premium for twice the number of years you could’ve had Part A, but didn’t sign up.

Part A costs if you have Original Medicare

(NOTE: All Medicare Advantage (MA) Plans must cover these services. If you’re in an MA Plan, costs vary by plan and may be either higher or lower than those in Original Medicare. Review the “Evidence of Coverage” from your plan.)

Medicare Part B (Medical Insurance) Costs

Monthly premium: The standard Part B premium amount in 2021 is $148.50. Most people pay the standard Part B premium amount. If your modified adjusted gross income as reported on your Internal Revenue Service (IRS) tax return from 2 years ago is above a certain amount, you'll pay the standard premium amount and an Income Related Monthly Adjustment Amount (IRMAA). IRMAA is an extra charge added to your premium.

Late enrollment penalty: In most cases, if you don't sign up for Part B when you're first eligible, you'll have to pay a late enrollment penalty. You'll have to pay this penalty for as long as you have Part B. Your monthly premium for Part B may go up 10% of the standard premium for each full 12-month period that you could’ve had Part B, but didn't sign up for it. Also, you may have to wait until the General Enrollment Period (from January 1 to March 31) to enroll in Part B. Coverage will start July 1 of that year.

Part B costs if you have Original Medicare

(NOTE: All Medicare Advantage (MA) Plans must cover these services. If you're in an MA Plan, costs vary by plan and may be either higher or lower than those in Original Medicare. Review the "Evidence of Coverage" from your plan.)

Part D (Medicare Drug Coverage)

Part D base beneficiary premium - $33.06 (used to determine any late enrollment penalty amount).

Deductibles, copayments, and coinsurance - The amount you pay for Part D deductibles, copayments, and/or coinsurance varies by plan. Look for specific Medicare drug coverage costs, and then call the plans you’re interested in to get more details.

Part D late enrollment penalty - You may owe a late enrollment penalty if, for any continuous period of 63 days or more after your Initial Enrollment Period is over, you go without one of these:
  • A Medicare drug plan (Part D)
  • A Medicare Advantage (MA) Plan (Part C) or another Medicare health plan that offers Medicare prescription drug coverage
  • Creditable prescription drug coverage

In general, you'll have to pay this penalty for as long as you have Medicare drug coverage. The cost of the late enrollment penalty depends on how long you went without Part D or creditable prescription drug coverage.

Medicare calculates the penalty by multiplying 1% of the "national base beneficiary premium" ($33.06 in 2021) times the number of full, uncovered months you didn't have Part D or creditable coverage. The monthly premium is rounded to the nearest $.10 and added to your monthly Part D premium. The national base beneficiary premium may change each year, so your penalty amount may also change each year.

The chart below shows your estimated drug plan monthly premium based on your income as reported on your IRS tax return. If your income is above a certain limit, you'll pay an income-related monthly adjustment amount in addition to your plan premium.
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