Retirees got some good news last month, a 1.3% cost-of-living raise in 2021 Social Security benefits. But Uncle Sam giveth, and Uncle Sam taketh away. Your 1.3% raise will be eaten up by rising Medicare premiums.
This month the government’s Centers for Medicare and Medicaid Services announced the standard Medicare Part B premium, currently $144.60, will increase to $148.50 come 2021. That $3.90 bump is a 2.7% increase, which is more than double that Social Security raise. But there's a positive side for 2021 Medicare plans too. As Matt Law with Reno’s Health Benefits Associates told me there's "great news...zero dollar premiums, new insurance companies and for the most part out of pocket expenses are lower."
Matt isn't employed by any Medicare plan insurance company. He's a broker, giving you 8 plans from different companies to choose from. He says, "For 2021 we're seeing most of the insurance companies include comprehensive dental coverage, vision and hearing aids as well as standard prescription and medical benefits. The benefits for dental, vision and hearing aids are becoming stronger year to year."
Unfortunately, prescription drug prices are still going the other direction. Retail prices increased by an average 5.8% this year, more than double the rate of inflation. But Matt says Medicare Part D prescription drug plan costs are pretty much staying the same. Shop around a bit, and you'll find a deal or two that fits you. He says, "Each person's needs are different, so there are Medicare Advantage plans with Part B rebates where they will actually help you pay for your Part B premium. But for the most part, most insurance companies are starting their plans off at a zero dollar monthly premium. And so people can get better deals year to year, just if they know what's available to them."
Medicare open enrollment ends December 7th. If you're already in, maybe shop around. If you don't like what you have, you might find a Medicare plan with lower premiums...and/or better coverage.
And beneficiaries can easily shop and compare plans and find out more by going to www.medicare.gov. To see how Matt’s company, Health Benefits Associates can help you, click the link below:
