Sorry, Seniors: Medicare Part B Premiums Are Rising in 2021

The Motley Fool reports that the U.S. Centers for Medicare and Medicaid Services announced a hike in Medicare Part B premiums next year. The standard monthly Part B premium will rise 2.7 percent from $144.60 to $148.50, which is more than twice the most recent Social Security cost-of-living adjustment (COLA). Moreover, the yearly deductible for Part B will climb from $198 in 2020 to $203 in 2021, while the Part A deductible per hospital benefit period will rise from $1,408 to $1,484. The upcoming 1.3 percent Social Security COLA is less than 2020's 1.6 percent COLA, which will translate into less than $20 extra in monthly income for average beneficiaries. Factoring in Part B's monthly $3.90 increase, this amounts to less than $200 extra in the course of the year when including the cost of Part B premium increases. With higher Part A and Part B deductibles accounted for, some seniors will only see a roughly $100 gain in 2021. Should Medicare costs continue to appreciate, Social Security beneficiaries will continue to be at a major financial disadvantage unless lawmakers intervene and amend COLA calculation.