Medicare Premiums Will Rise Above $100 Monthly for First Time Next Year
Premiums for Medicare Part B, which covers physician services, will increase by 15% next year to $110.50 per month, topping $100 for the first time, federal officials said on Monday, the New York Times reports.
About 27% of Medicare beneficiaries, or 12 million people, will have to pay the higher premiums or have the additional amounts paid on their behalf.
The other 73% will be shielded from the increase because, under current law, their Medicare premiums cannot increase more than the increase in their Social Security benefits. There will be no cost-of-living adjustment for Social Security benefits in 2010 because inflation has been low.
Groups facing higher premiums next year include new Medicare beneficiaries, high-income beneficiaries and those whose premiums are paid by Medicaid.
According to federal officials, the higher premiums will impose "an additional and significant burden" on states, with which the federal government shares the cost of Medicaid (Pear, New York Times, 10/20).
The House in September passed a bill that would freeze Medicare Part B premiums (California Healthline, 9/25).
HHS Secretary Kathleen Sebelius urged the Senate to also approve such legislation (New York Times, 10/20).
This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.