Social Security and Medicare News in Focus

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2021 Social Security and Medicare Figures compared to the 2020 Figures

On October 13, 2020, the Social Security Administration "SSA" announced all of the 2021 figures. The Centers for Medicare and Medicaid Services (CMS), an agency under the Department of Health and Human Services announced the 2021 Medicare premiums and deductibles on November 6, 2020. The table below is a summary of the new 2021 Social Security and Medicare figures compared to 2020. The last four Medicare Part D figures at the end of the table were released on April 6, 2020.

The cost-of-living adjustment (COLA) for 2021 is 1.3%. In 2021, the full retirement age (FRA) is 66 and 2 months (was 66 in 2020). Some of the following Social Security program figures relate to when a person attains FRA.

  • Social Security
  • Medicare
  • Original Medicare Plan

Social Security

Social Security
2020
2021
Cost-of-living Adjustment (COLA) for December (payable in January)
1.6% (12/19)
1.3% (12/20)
FICA tax rate
Social Security for employees and employers
6.20%
6.20%
Medicare (Hospital Insurance) An additional FICA tax of 0.9% applies to high-income beneficiaries with annual incomes above $200,000 ($250,000 for married couples filing jointly). The employer does not pay this additional percentage.
1.45%
1.45%
Maximum Social Security earnings for tax contributions and benefits
$137,700
$142,800
Medicare taxable earnings
no limit
no limit
Earnings required to earn one credit (maximum of four credits per year)
$1,410
$1,470
Retirement Earnings Test exempt amounts
Under full retirement age (FRA) throughout 2021
$18,240
$18,960
FRA in 2021 (period before the month FRA is attained)
$48,600
$50,520
FRA and over
no limit
no limit
Primary Insurance Amount (PIA) formula – is the basic benefit formula used to calculate a person’s benefit and is applied to their average indexed monthly earnings (AIME). For people attaining age 62 or younger in each year, the formula as follows:
90% of the first $ of AIME, plus
$960
$996
32% of the next $ of AIME, plus
$4,825
$5,006
15% of the remaining AIME in excess of
$5,785
$6,002
National Average Wage Index
$52,145.80
$54,099.99

Social Security and Medicare Publications

Social Security and Medicare are the main source of retirement income and health care coverage. Use the easy-to-understand booklets to answer the many questions on these programs. Both are full of examples and updated information to help people get the most out of their benefits.

View the Catalog

For a limited time, get your prepublication 10% discount and FREE gift when you order online at www.imercer.com/guide and www.imercer.com/medicare.

Medicare

Medicare
2020
2021
Part A (Hospital Insurance) voluntary monthly premium if not eligible for premium-free Part A (an estimated 600,000 people pay this rate)
$458
$471
Part A reduced monthly premium for persons with 30-39 credits
$252
$259
Part B (Medical Insurance) standard monthly premium for most current, new, and high-income Medicare beneficiaries, and people whose Medicare premium is paid by Medicaid.
$144.60
$148.50
High-income Part B (Medical Insurance) standard monthly premium*
File an Individual Tax Return
File a Joint Tax Return
0 to $88,000 annual income
0 to $176,000 annual income
$144.60
$148.50
$88,001 to $111,000
$176,001 to $222,000
$202.40
$207.90
$111,001 to $138,000
$222,001 to $276,000
$289.20
$297.00
$138,001 to $165,000
$276,001 to $330,000
$376.00
$386.10
$165,001 to $500,000
$330,001 to $750,000
$462.70
$475.20
over $500,000**
over $750,000**
$491.60
$504.90

*Income brackets for beneficiaries based on their 2019 federal income tax return filing status and adjusted gross income in 2021 (2018 returns for 2020).

**The Bipartisan Budget Act of 2018 set an additional Part B premium level starting in 2019 for high-income beneficiaries.

Social Security and Medicare Publications

Social Security and Medicare are the main source of retirement income and health care coverage. Use the easy-to-understand booklets to answer the many questions on these programs. Both are full of examples and updated information to help people get the most out of their benefits.

View the Catalog

Original Medicare Plan

Original Medicare Plan
2020
2021
Part A inpatient deductible per benefit period
$1,408
$1,484
Part A daily coinsurance 61st through 90th days
$352
$371
Part A daily coinsurance for up to 60 "lifetime reserve" days
$704
$742
Part A daily coinsurance 21st through 100th days in a skilled nursing facility
$176
$185.50
Part B annual deductible
$198
$203
Part D (Prescription Drug Coverage) monthly premium paid to Part D plan Income-related adjustment will be paid to Medicare as follows*:
About $32.74
About $30.50
File an Individual Tax Return
File a Joint Tax Return
0 to $88,000 annual income
0 to $176,000 annual income
Add $0
Add $0
$88,001 to $111,000
$176,001 to $222,000
Add $12.20
Add $12.30
$111,001 to $138,000
$222,001 to $276,000
Add $31.50
Add $31.80
$138,001 to $165,000
$276,001 to $330,000
Add $50.70
Add $51.20
$165,001 to $500,000
$330,001 to $750,000
Add $70.00
Add $70.70
over $500,000**
over $750,000**
Add $76.40
Add $77.10

*Income brackets for beneficiaries based on their 2019 federal income tax return filing status and adjusted gross income in 2021 (2018 returns for 2020).

**The Bipartisan Budget Act of 2018 set an additional premium level starting in 2019 for high-income beneficiaries.

Part D deductible
$435
$445
Part D initial benefit limit
$4,020
$4,130
Part D catastrophic threshold
$6,350
$6,550
Part D minimum cost-sharing for catastrophic coverage
 
Generic/Preferred:
$3.40
$3.70
 
Other:
$8.95
$9.20

Social Security and Medicare Publications

Social Security and Medicare are the main source of retirement income and health care coverage. Use the easy-to-understand booklets to answer the many questions on these programs. Both are full of examples and updated information to help people get the most out of their benefits.

View the Catalog

For a limited time, get your prepublication 10% discount and FREE gift when you order online at www.imercer.com/guide and www.imercer.com/medicare.

  • Sub TitleKeeping you informed today...helping you plan for tomorrow.
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  • Short Description2020 Social Security and Medicare Figures compared to the 2019 Figures
  • RegionUS