We’re an Insurance Agency that specializes in Life and Health Insurance coverage for individuals and businesses. We can provide what best suits your needs because we are an independent agency not tied to any one carrier. Learn more about how insurance works below.
How Medicare Works
Centers For Medicare and Medicaid Services 2021 Guide to Medicare Medicare is the federal health insurance program for people over 65 years of age and people with certain disabilities or End-Stage Renal Disease (permanent kidney failure). There are four parts to Medicare:
- Part A – Hospital Insurance
- Part B – Optional Medical Insurance
- Part C – Optional Medicare Advantage Insurance
- Part D – Optional Prescription Drug Insurance
2021 Medicare Part A
Helps pay for care in hospitals, some skilled nursing facilities, hospice, and some health care. For most people, Part A is premium-free because they paid Medicare taxes.
|Hospitalized||Medicare Covers||Individuals Pay|
|1-60 days||Most confinement costs after the required Medicare Deductible.||$1,484 deductible|
|61-90 days||All eligible expenses, after the patient pays a per-day co-payment.||$371 per day co-payment|
|91-150 days||All eligible expenses except per-day co-payment. 60 Lifetime Reserve days may not be reused.||$742 per day co-payment|
|151 days or more||Nothing||100%|
|Skilled Nursing Confinement*||All eligible expenses for the first 20 days, then all eligible expenses for days 21-100, after patient pays a per-day co-payment.||$185.50 per-day (after 20 days)|
*Must be receiving skilled nursing care in a Medicare approved skilled nursing facility that begins within 30 days after hospitalization of at least 3 days.
2021 Optional Medicare Part B
Optional coverage to help pay for doctors, outpatient hospital care, and some other medical services not covered by Part A. The chart below shows the Part B monthly premium amounts based on income. These amounts change each year. There may be a late-enrollment penalty.
|File Individual Return||File Joint Return||Individual Pays|
|$88,000 or less||$176,000 or less||$148.50*|
|$88,000 – $111,000||$176,000 – $222,000||$207|
|$111,000 – $138,000||$222,000 – $276,000||$297|
|$138,000 – $165,000||$276,000 – $330,000||$386.10|
|Above $165,000 and less than $500,000||Above $330,000 and less than $750,000||$475.20|
|$500,000 or above||$750,000 or above||$504.90|
* Most people will pay the Part B premium of $148.50 in 2021.
Medicare General Enrollment Period is from January 1 through March 31 of each year at a Social Security Administration office. Part B coverage will start on July 1 of that year.
Special Part B Enrollment Periods – while covered by employer or union group health plan or within 63 days of the date when the employer or union group health plan coverage ends, or when employment ends.
|Expense||Medicare Covers||Individuals Pay|
|Medical Expenses – Physician’s services for inpatient and outpatient medical/surgical services; physical/speed therapy, diagnostic tests||80% of approved amount||$203 deductible plus 20% of approved amount|
|Clinical Laboratory Services – Blood tests, urinalysis||Genarally 100% of approved amount||Nothing for services|
|Home Health Care – Part-time or intermittent skilled care, home health aide services, durable medical supplies and other services||100% of approved amount, 20% of approved amount for durable medical equipment||Nothing for services, 20% of approved amount for durable medical equipment|
|Hospital Outpatient – Hospital services for the diagnosis or treatment of an illness or injury||Medicare payment to hospital, based on outpatient procedure payment rates||20% of approved amount, in all other cases co-payment based on outpatient payment rates|
Part C Optional Medicare Advantage Plan Monthly
An alternative to traditional Medicare, Part C is another way to get Medicare benefits. It combines Part A, Part B, and, sometimes, Part D (prescription drug) coverage. Medicare Advantage Plans are managed by private insurance companies approved by Medicare. These plans must cover medically-necessary services. However, plans can charge different copayments, coinsurance, or deductibles for these services.
Part D Optional Medicare Prescription Drug Plan
This optional coverage may help lower an individual’s prescription.
|Individual tax return||Joint tax return||Individuals pay|
|$88,000 or less||$176,000 or less||Your plan premium|
|Above $88,000 up to $111,000||Above $176,000 up to $222,000||$12.30 + your plan premium|
|Above $111,000 up to $138,000||Above $222,000 up to $276,000||$31.80 + your plan premium|
|Above $138,000 up to $165,000||Above $276,000 up to $330,000||$51.20 + your plan premium|
|Above $165,000 and less than $500,000||Above $330,000 and less than $750,000||$70.70 + your plan premium|
|$500,000 or above||$750,000 or above||$77.10 + your plan premium|
Health Savings Account Contribution Limits
|Contribution Limits||$3,550 Single, $7,100 Family||$3,600 Single, $7,200 Family|
|Minimum Deductible||$1,400 Single, $2,800 Family||$1,400 Single, $2,800 Family|
|Max out of Pocket (Includes Deductible)||$6,900 Single, $13,800 Family||$7,000 Single, $14,000 Family|
* Catch Up Contribution age 55+ $1,000.
Tax Deductions For Long Term Care Insurance
Premium payments for a tax-qualified long-term care insurance policy are deductible as personal medical expenses for those taxpayers who itemize their deductions.
|40 & Under||$450|
|41 to 50||$850|
|51 to 60||$1,690|
|61 to 70||$4,520|
|71 & Older||$5,640|
Prices above are for individuals. Prices for couples would be twice those of the individuals. Deductions can be taken for individuals, their spouse and tax dependents (such as parents) and are subject to the same tax rules as traditional medial expenses (such as 7.5% adjusted gross income [AGI] floor).
FOR SELF EMPLOYED
Payments for a tax-qualified long-term care insurance policy purchased by a self employed individual or sole proprietor are currently treated as medical insurance premiums with the same limits as those for individuals taxpayers.
Premium payments for a tax-qualified [TQ] long-term care insurance policy are fully (100%) deductible as a reasonable and necessary business expense similar to traditional health and accident insurance premiums (IRC Sec 702B[a]).
LIMITED LIABILITY COMPANIES PARTNERSHIPS
Premium payments for policies purchased for a non-partner/non-owner or less-than-2% shareholder-employee are fully deductible as a reasonable and necessary business expense so long as the entity does not retain any interest in the policy. The same is true for their spouse or tax dependents.
IRA Fact Sheet
|Year||Max Contribution||Catch-Up age 50+||Max Contribution with Catch-Up|
- Individuals age 50 and above can contribute a total of $13,000 jointly
- Individuals cannot make an IRA Contribution during the year they turn 701/2. Note: If they wait until April 1, individuals must take two distributions during that year.
IRA Eligibility Limits
|Tax Year||Single||Married Filing Jointly|
|2020||$124,000 to $139,000||$196,000 to $206,000|
|2021||$125,000 to $140,000||$198,000 to $208,000|
* Please note there is no eligiblity limit for self employed individuals. The above tax charts are based on current IRS regulations and may be subject to future changes. Please consult your financial advisor.
Business Retirement Plan Contribution Limits
|401(k) and 403(b) Plans||$19,500||$19,500|
|Catch-Up Contribution Amounts* (401(k), 403(b) SIMPLE Plans)||$6,500, $3,000||$6,500, $3,000|
|Defined Contribution Plans||Lesser of 100% of compensation or $57,000||Lesser of 100% of compensation or $58,000|
|Defined Benefits Plans||Lesser of 100% of average compensation for 3 years or $225,000||Lesser of 100% of average compensation for 3 years or $230,000|
|Annual Compensation Limit||$285,000||$290,000|
* For employees age 50 and older.