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Medicare Premiums, Health Care Costs Obliterate Many Seniors' COLA (Press Release)
Alexandria, VA (December 29, 2003) -- Medicare premiums are jumping 13.5% at the start of the year, obliterating this year's 2.1% Social Security COLA for many seniors. A national seniors' organization warns that this is just the beginning of a new round of cost increases for many older Americans.
Starting next year, Medicare beneficiaries will pay higher Part B deductibles that will increase annually. "Unlike most health insurance plans with a fixed deductible, traditional Medicare recipients will soon start paying both a higher Part B premium and a higher deductible every year," notes George Smith, Chairman of TREA Senior Citizens League.
The Medicare Part B deductible for doctors and hospital outpatient services has been $100 per year since 1991. The deductible will increase to $110 in 2005. "We expect the increases after that to be substantial because overall Medicare spending will be used to determine the annual increase," Smith adds.
According to the General Accounting Office (GAO), Medicare often pays overly generous rates for certain services and products.(1) Over the past five years, Medicare premiums, which are also based on Medicare spending, have increased about 8% per year.(2) "The new Medicare legislation is packed with provisions that are expected to increase payments to a host of providers,(3)" Smith explains. "Seniors in traditional fee-for-service Medicare will start paying for this before any drug benefit even starts," he points out," and the deductible will continue to increase thereafter." "The Medicare drug bill was a first step in providing a prescription drug benefit to millions of Americans. Still, it is a flawed bill, " states Smith. "TSCL will fight to improve those elements of the bill that hurt American seniors. We urge seniors to remain vigilant as we learn more about how the new prescription drug legislation has transformed Medicare," Smith adds.
TSCL is a national group of politically active seniors concerned about the protection of their earned Social Security, Medicare, military, and other retirement benefits. TSCL members participate in a number of grassroots lobbying and public education campaigns designed to ensure governmental bodies, including the Social Security Administration and the Centers for Medicare and Medicaid Services, live up to their commitments. For more free information on this issue and our organization, please contact TREA Senior Citizens League, Department S606S, 909 N. Washington St., Suite 300, Alexandria, VA 22314, or visit our website at: www.tscl.org. (1) "Medicare Observations on Program Sustainability and Strategies to Control Spending on Any Proposed Drug Benefit," General Accounting Office, April 9, 2003, page 2.
(2) "Prescription Drug Coverage and Medicare's Fiscal Challenges, Congressional Budget Office," April 9, 2003, page 4.
(3) "Medicare Reform: Who Wins and Loses," The New York Times, November 25, 2003.
Distributed by The Senior Exchange, Inc.
Serving The Mature American With Timely, Low-Cost, Self-Help Information December 2003
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