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2021 COLA INCREASES FOR MEDICAID, SOCIAL SECURITY, MEDICARE, TAX AND VETERANS BENEFITS

by: Begley Law Group

by Thomas D. Begley, Jr., Esquire, CELA

There are a great many public benefit numbers and tax numbers that are adjusted on an annual basis.  This article is designed to make those numbers readily available.  The following are current numbers for 2021.

Medicaid

  • Income Cap[1] $2,382
  • Maximum Community Spouse Resource Allowance (CSRA)[2] $130,380
  • Minimum CSRA[3] $26,076
  • Maximum Minimum Monthly Maintenance Needs Allowance (MMMNA)[4]   $3,259.50
  • MMMNA (July 1, 2020 until June 30, 2021)[5] $2,155
  • Excess Shelter Allowance (July 1, 2020 until June 30, 2021)[6] $646.50
  • Maximum Resource Limit (Individual)[7] $2,000
  • Minimum and Maximum Cap on Equity in the Home[8] $603,000  –  $906,000

Social Security

  • For 2021, there will be a 1.3% COLA increase for Social Security benefits.[9]
  • Maximum Social Security benefit for a single individual retiring at full retirement age[10]                                                                                                                        $3,148
  • Supplemental Security Income (SSI) – Single[11]                $794
  • Supplemental Security Income (SSI) – Couple[12]            $1,191
  • Supplemental Security Income (SSI) – Essential Person[13]       $397
  • Maximum Annual SSI benefit – Single[14]    $9,528
  • Maximum Annual SSI benefit – Couple[15]    $14,292
  • Substantial Gainful Activity (SGA) – Disabled[16]    $1,310
  • SGA – Blind[17]            $2,190
  • Tax Rate Employer and Employee calculated separately[18] (includes OASDI and Medicare)  Add an additional .09% for individuals earning more than $200,000 or married couples earning more than $250,000           7.65%
  • Tax Rate Self Employed[19]       30%
  • Trial Work Period[20]          $940
  • Maximum Social Security Contribution and Benefit Base[21]    $142,800
  • Quarter of Coverage[22]            $1,470

 

Medicare

Part A

  • Medicare Co-Payment – Skilled Nursing Facility (SNF)[23]   $185.50
  • Hospital Deductible[24]   $1,484
  • Per day Co-Insurance – Day 61 -90[25]   $371
  • Per day Co Insurance – Day 91-150[26]   $742

Part A Premium (for voluntary enrollees only)

  • With 30-39 quarters of Social Security coverage[27]   $259
  • With 29 or fewer quarters of Social Security coverage[28]   $471

Part B

  • Medicare Part B Deductible[29]         $203
  • Standard Part B Premium[30]                $148.50

 

Medicare Part B – Single or Married and Filing Joint Return

Part B Income-Related Premium[31]

 

Beneficiaries who file an individual

tax return with income:

 

Beneficiaries who file a joint tax return with

income:

Income-related monthly adjustment amount Total monthly premium amount

 

Less than or equal to $88,000

 

Less than or equal

to $176,000

$0.00 $148.50
Greater than

$88,000  and less

than or equal to $111,000

 

Greater than $176,000  and less than or equal to $222,000 $59.40 $207.90
Greater than $111,000  and less than or equal to $138,000

 

Greater than $222,000  and less than or equal to $276,000 $148.50 $297.00
Greater than $138,000  and less than or equal to $165,000

 

Greater than $276,000  and less than or equal to $330,000 $237.60 $386.10
Greater than $165,000  and less than or equal to $500,000

 

Greater than $330,000  and less than or equal to $750,000 $326.70 $475.20
Greater than or equal to $500,000 Greater than or equal to $750,000 $356.40 $504.90

 

In addition, the monthly premium rates to be paid by beneficiaries who are married, but file a separate return from their spouse and lived with their spouse at some time during the taxable year are:

 

Beneficiaries who are married and lived with their spouses at any time during the calendar year, but who file separate tax returns from their spouses:

 

Income-related monthly adjustment amount Total monthly premium amount
Less than or equal to

$88,000

 

$0.00 $148.50
Greater than $88,000  and less than $412,000

 

$326.70 $475.20
Greater than or equal to $412,000 $356.40 $504.90

 

Standard Part D Cost-Sharing for 2021[32]

  • Annual Deductible Maximum    $445

(After the Deductible is met, Beneficiary pays 25% of  Covered costs up to total prescription costs meeting the initial Coverage Limit)

  • Member Pays 25% of the Next…            $3,685
  • Initial Coverage Limit                             $4,130

 

  • Out-of-Pocket Threshold                     $6,550

(Brand name drugs:  70% Discount + 5% plan “subsidy,” Generic drugs:  Plan pays 75%)

  • Total Covered Part D Drug Out-of-Pocket    $9,313.75

Spending including Coverage Gap (Catastrophic Coverage starts after this point.)

  • Catastrophic cost-sharing:  Generic                       $3.70 or 5% (whichever is greater)
  • Catastrophic cost-sharing:Brand                           $9.20  or 5% (whichever is greater)

Tax

  • Annual Gift Tax Exclusion[33]      $15,000
  • Gifts to Non-Citizen Spouse[34] $159,000
  • Income Level/Maximum Tax Estates and Trust[35]               $13,050
  • Income Level/Maximum Single Individual Income Tax[36]         $523,600
  • Federal Estate and Gift Tax Exemption[37] $11,700,000
  • Personal Exemption[38]                      Eliminated
  • FICA Wage Threshold[39] Domestic Workers            $2,300
  • FUTA Wage Base[40]           $7,000
  • Maximum IRA Contribution[41] $6,000
  • “Catchup” IRA Contribution[42] $1,000
  • Applicable Allowable AGI Limit Roth IRA Single Taxpayer[43] $125,000
  • Applicable Allowable AGI Limit Roth IRA Married Taxpayer Filing Jointly[44]                                                                                                      $198,000
  • Medicare Tax on Earned Incomes over $200,000 – Single,  over $250,000 – Married[45]                                                                                0.9%
  • Medicare Tax on Unearned Incomes over $200,000 – Single, over $250,000 – Married[46]                                                                                3.8%
  • Maximum Earned Income Contribution to ABLE Account by Disabled Beneficiary[47]                                                                                                     $12,490

Veterans Aid & Attendance and Household Benefits[48]

Aid and Attendance

  • Veteran with no dependents$1,936 per month
  • Veteran with one dependent$2,295 per month
  • Spouse of deceased Veteran with no dependent$1,244 per month

Housebound Benefits

  • Housebound Veteran, no dependents$1,418 per month
  • Housebound Veteran, one dependent$1,778 per month
  • Housebound spouse of deceased Veteran, no dependent$951 per month

Net Worth

The net worth limit for a Veteran seeking Aid and Attendance is $130,733 for 2021.

 

[1] 42 U.S.C. §1396a(a)(10)(A)(v); 2021 SSI and Spousal Impoverishment Standards, www.medicaid.gov.

[2] 2021 SSI and Spousal Impoverishment Standards, www.medicaid.gov.

[3] 2021 SSI and Spousal Impoverishment Standards, www.medicaid.gov.

[4] 2021 SSI and Spousal Impoverishment Standards, www.medicaid.gov.

[5]2021 SSI and Spousal Impoverishment Standards, www.medicaid.gov.

[6]2021 SSI and Spousal Impoverishment Standards, www.medicaid.gov.

[7] 20 CFR § 416.1205(c).

[8] 42 U.S.C. §1396p(f); 2021 SSI and Spousal Impoverishment Standards, www.medicaid.gov.

[9]  85 F.R. 67413 (Oct. 22, 2020).

[10] Fact Sheet, Social Security, 2021 Social Security Changes, ssa.gov.

[11]  85 F.R. 67413 (Oct. 22, 2020).

[12]   85 F.R. 67413 (Oct. 22, 2020).

[13]  85 F.R. 67413 (Oct. 22, 2020).

[14]   85 F.R. 67413 (Oct. 22, 2020).

[15]   85 F.R. 67413 (Oct. 22, 2020).

[16]   85 F.R. 67418 (Oct. 22, 2020).

[17]   85 F.R. 67418 (Oct. 22, 2020).

[18]  Fact Sheet, Social Security, 2021 Social Security Changes, ssa.gov.

[19] Fact Sheet, Social Security, 2021 Social Security Changes, ssa.gov.

[20] 85 F.R. 67418 (Oct. 22, 2020).

[21] 85 F.R. 67414 (Oct. 22, 2020).

[22] 85 F.R. 67417 (Oct. 22, 2020).

[23] 85 F.R. 71916 (Nov. 12, 2020).

[24] 85 F.R. 71916 (Nov. 12, 2020).

[25] 85 F.R. 71916 (Nov. 12, 2020).

[26] 85 F.R. 71916 (Nov. 12, 2020).

[27] 85 F.R. 71913 (Nov. 12, 2020).

[28] 85 F.R. 71913 (Nov. 12, 2020).

[29] 85 F.R. 71904 (Nov. 12, 2020).

[30] 85 F.R. 71904 (Nov. 12, 2020).

[31] 85 F.R. 71904 (Nov. 12, 2020).

[32]  2021 Medicare Part D. Outlook, https://q1medicare.com/PartD-The-2021-Medicare-Part-D-Outlook.php

[33] I.R.C. §2503; Rev. Proc. 2020-45(3)(.43)(1).

[34] I.R.C. §2523; Rev. Proc. 2020-45(3)(.43)(2).

[35] I.R.C. §1(e); Rev. Proc. 2020-45(3)(.01) Table 5.

[36] I.R.C. §1(c); Rev. Proc. 2020-45(3)(.01) Table 3.

[37] I.R.C. §2010; Rev. Proc.  2020-45 (3)(.41).

[38] I.R.C. §151; Rev. Proc.   2018-18 (3)(.24)(1).

[39]  85 F.R. 67419 (Oct. 22, 2020).84 F.R. 56515 (Oct. 22, 2019).

[40] IRC Notice 2019-59.

[41] IRC Notice 2019-59.

[42] IRC Notice 2019-59.

[43] IRC Notice 2020-79.

[44] IRC Notice 2020-79.

[45] IRC § 3101(b).

[46] IRC § 1411.

[47] IRS Publication 907.

[48] http://benefits.va.gov/pension/aid_attendance_housebound.asp.