The pandemic didn’t do any favors to those living on fixed income from state and federal benefits and the forthcoming adjustments to Medicare costs will only make those margins tighter.
Recently, Medicare announced that Part B premiums will be rising in 2021. What this means is that the standard monthly Part B Premium will increase from $144.60 to $148.50, representing a 2.7% rise and is more than double the most recent Social Security cost-of-living adjustment (COLA) of 1.3%. The annual deductible for Part B is rising as well to $203 and the Part A deductible per hospital benefit period is going up alongside that with a $76 hike.
How This Will Affect Social Security Benefits
For seniors that rely solely on this income, it’s a bigger chunk taken out of monthly benefits with a COLA that doesn’t nearly represent the cost realities of the pandemic. For the average beneficiary, it will result in less than $20 extra in monthly income, which obviously doesn’t make up for all of the changes everyone has faced this calendar year.
Medicare Part D drug plans are also likely set to increase, which will pinch these fine margins even further.
What Does Part B Cover?
Medicare Part B helps cover necessary services like “doctors’ services and tests, outpatient care, home health services, durable medical equipment, and other medical services”. It also can include preventative care. Health and Human Services outlines this coverage here. The Part B premium offers coverage for around 25% of the cost of Medicare’s supplemental insurance for outpatient services.
Above all, it means that it’s more important than ever to make sure that you’re getting every available Social Security benefit that’s open to you. Whether that’s Supplemental Security Insurance (SSI), Social Security Disability Insurance (SSDI), or another federal benefit program, don’t let an initial denial get in the way of what you may be entitled to.
The team at Bevill & Bevill, LLC is a knowledgeable source about this process and is a trusted source for Alabama clients looking for help. Call (205) 221-4646 to learn more and schedule a free consultation.