Medicare charge linked to income
Medicare charge linked to income
By Bob Lamendola,
Copyright © 2006, Chicago Tribune
Tribune Newspapers: South Florida Sun-Sentinel; Tribune news services contributed to this report
Published September 13, 2006
The monthly Medicare premium paid by about 40 million seniors and disabled people will climb 5.6 percent next year, to $93.50, but will leap as much as 83 percent for the wealthiest of them.
For the first time, the monthly cost of so-called part B coverage for doctor and outpatient bills will be pegged to income, as Medicare attempts to address mounting financial problems, federal officials said Tuesday.
People with incomes over $80,000 -- 4 percent to 5 percent of all recipients -- will pay more than the rest of the Medicare population starting Jan. 1.
Some analysts and recipients predict wealthy seniors will abandon Medicare for private insurance rather than pay the higher premiums, leaving the program with sicker and poorer recipients.
But outgoing Medicare chief Mark McClellan said that is unlikely. His office projects 30,000 seniors would leave Medicare by 2010, out of about 1.2 million high-income seniors affected by the premium surcharge. Even the highest-income seniors paying top premiums would still get a subsidy on health care from Medicare.
"I don't see any substantial adverse impacts on the service beneficiaries receive and I do see a substantial positive affect" for the program's long-term survival, McClellan said.
For people who earn more than $80,000, or couples who earn more than $160,000, premiums will jump from $88.50 to $106. That amount goes up even more for seniors with higher incomes. For the wealthiest seniors, with incomes over $200,000, the monthly premium would go to $162.
Congress approved the surcharge on wealthier beneficiaries in 2003 when it passed the Medicare prescription drug benefit that started this year.
The idea was to help Medicare cope with financial problems from the spiraling cost of health care and the aging of Baby Boomers. The surcharge is expected to raise an extra $7.7 billion over the next five years and $20.8 billion over 10 years, McClellan said.
In addition to the rise in part B premiums, recipients will see their part B deductible rise $7 a year to $131 and their part A (hospitalization) deductible rise $40, to $992 per stay.
By Bob Lamendola,
Copyright © 2006, Chicago Tribune
Tribune Newspapers: South Florida Sun-Sentinel; Tribune news services contributed to this report
Published September 13, 2006
The monthly Medicare premium paid by about 40 million seniors and disabled people will climb 5.6 percent next year, to $93.50, but will leap as much as 83 percent for the wealthiest of them.
For the first time, the monthly cost of so-called part B coverage for doctor and outpatient bills will be pegged to income, as Medicare attempts to address mounting financial problems, federal officials said Tuesday.
People with incomes over $80,000 -- 4 percent to 5 percent of all recipients -- will pay more than the rest of the Medicare population starting Jan. 1.
Some analysts and recipients predict wealthy seniors will abandon Medicare for private insurance rather than pay the higher premiums, leaving the program with sicker and poorer recipients.
But outgoing Medicare chief Mark McClellan said that is unlikely. His office projects 30,000 seniors would leave Medicare by 2010, out of about 1.2 million high-income seniors affected by the premium surcharge. Even the highest-income seniors paying top premiums would still get a subsidy on health care from Medicare.
"I don't see any substantial adverse impacts on the service beneficiaries receive and I do see a substantial positive affect" for the program's long-term survival, McClellan said.
For people who earn more than $80,000, or couples who earn more than $160,000, premiums will jump from $88.50 to $106. That amount goes up even more for seniors with higher incomes. For the wealthiest seniors, with incomes over $200,000, the monthly premium would go to $162.
Congress approved the surcharge on wealthier beneficiaries in 2003 when it passed the Medicare prescription drug benefit that started this year.
The idea was to help Medicare cope with financial problems from the spiraling cost of health care and the aging of Baby Boomers. The surcharge is expected to raise an extra $7.7 billion over the next five years and $20.8 billion over 10 years, McClellan said.
In addition to the rise in part B premiums, recipients will see their part B deductible rise $7 a year to $131 and their part A (hospitalization) deductible rise $40, to $992 per stay.
posted by Carlos T Mock @ 8:44 PM
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