Medicare Part B premiums in 2021 will increase $3.90 a month, raising the monthly premium for Part B enrollees to $148.50, the Medicare & Medicare Services announced Friday.
The increase is lower than it was in 2020, which saw a $9.10, or 6.7%, increase in the same year that the cost of living adjustment was 1.6%.
Higher income individuals (those individuals with more than $88,000 of yearly income, or married and filing jointly with annual income of over $176,000) are expected to see their Medicare Part B charge raised to at least $207.90.
The Social Security COLA for 2021 is 1.3%.
In 2019, the Medicare Part B increase was $1.50 a month, or 1.1%, while that year’s COLA was 2.8%.
“The premium hike could have been worse,” said Lisa Swirsky, policy advisor, National Committee to Preserve Social Security and Medicare.
“Unfortunately, the $3.90 premium increase will eat up approximately 20% of the average Social Security beneficiary’s 2021 COLA, which was a meager 1.3%,” Swirsky explained.