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Medicare Part B Deductible 2021

The Part B Deductible has increased in amount from the previous year.

For Medicare recipients, Part B coverage is known as your medical insurance.


It helps to cover costs for doctor services, outpatient therapy, durable medical equipment, and other medically necessary services and preventive services not covered by Part A.


The Medicare Part B deductible is the amount you must pay toward Part B covered services before your Medicare coverage kicks in and pays 80% of the Medicare-approved amount (while you pay the remaining 20%).


Each year the Part B deductible amount is adjusted in accordance with the Social Security Act.


The 2021 Medicare Part B deductible amount has increased from the 2020 amount, which we will cover here.




What Is the Part B Deductible for 2021?


The Part B deductible for 2021 is $203.00.


This amount has increased by $5.00 from the Part B deductible for 2020, which was $198.00.



As you consider your Medicare costs for 2021, it’s helpful to know the Part B deductible amount.


Once you have paid this amount for services covered by Medicare Part B, your Part B coverage will begin paying 80% of the covered services going forward for the year.


In other words, once you pay $203.00 in out-of-pocket expenses for Part B services in 2021, you will then be charged a 20% coinsurance going forward (while Medicare covers the rest).



Important Change to Part B Deductible Coverage


Starting in 2020, Medicare beneficiaries will no longer be able to purchase Medigap plans that pay the cost of their Part B deductible.


This is the result of Congress passing the Medicare Access and Chip Reauthorization Act (MACRA).



Previously, Medicare enrollees were able to purchase Medigap plans to help pay for the out-of-pocket Part B deductible cost of Original Medicare.


The two Medigap plans that included coverage of the Part B deductible, Plan C and Plan F, will no longer be available for those newly eligible to Medicare after January 1, 2020.



How Does the Medicare Part B Deductible Work?


To begin, let’s start with how an insurance deductible works. When you see an amount listed as your insurance deductible, this is the amount that you must pay out-of-pocket before your insurance coverage kicks in and begins to help with your costs.


Note, that your deductible is only met when the out-of-pocket costs go toward care or services specifically covered by that insurance. So, for example, with your Medicare Part B coverage, these services might include:

  • Outpatient therapy

  • Most doctor services (including hospital inpatient doctor services)

  • Durable medical equipment (such as wheelchair, walker, or hospital bed)


Once you have met the deductible (i.e. paid the specified deductible amount toward covered services), you will only be required to pay a copayment or coinsurance amount for those covered services for the remainder of the year.


Now, let’s apply this directly to your Medicare Part B deductible for 2021, which is $203.


Once you have paid $203.00 in out-of-pockets costs toward care or services specifically covered by Medicare Part B, you will then only pay 20% of the costs for those covered services going forward.


In other words, once you’ve met your Part B deductible (paid $203 for Part B covered care), Medicare will cover 80% of Part B costs for the rest of the year, while you are responsible for the remaining 20%.




Helpful Resources:

Medicare: Part B Costs

CMS: 2021 Medicare Part B Premiums & Deductibles

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