The basic Medicare premium will shoot up next year by 15 percent, to $110.50 a month, federal officials said Monday.
The increase means that monthly premiums would top $100 for the first time, a stark indication of the rise in medical costs that is driving the debate in Congress about a broad overhaul of the health care system.
About 12 million people, or 27 percent of Medicare beneficiaries, will have to pay higher premiums or have the additional amounts paid on their behalf. The other 73 percent will be shielded from the increase because, under federal law, their Medicare premiums cannot go up more than the increase in their Social Security benefits, and Social Security officials announced last week that there would be no increase in benefits in 2010 because inflation had been extremely low.This is only the tip of the iceberg since it refers to Part A only. Any Part B and Medigap insurances premiums will also rise as will the "drug coverage". It seems that even if the rumored "death provisions" in the proposed Health Care Plans does not exist, the Government itself is pricing health care out of the elderly's capabilities.
@Doc, is it the Federal Govt or someone else responsible for the premiums increasing? It was the Federal Govt that put in the law that protected 73 percent of Medicare recipient. If big business had it way, it would reduce that number to 45 percent.
ReplyDeleteThis is the Feds, Medicare has calculated the increase to be budget neutral. However, the law protects about 75% on an income basis, thus those over that level will have a greater increase than expected or else Health Care will exceed Obama's desired limits.
ReplyDeleteIt perplexes me to no end, that we no problem sending our money overseas to Iraq and Afghanistan(and increasing our deficit, and health care cost for our returning soldiers) but when it comes to spending money on our own people we suddenly become fiscal hawks.
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