2% COLA, 15% Jump in Medicare Part B Premium and Deductible Estimated

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2% COLA, 15% Jump in Medicare Part B Premium and Deductible Estimated

Seniors will continue to have Medicare cost increases that far outpace Cost-Of-Living Adjustments (COLAs) next year. According to new government estimates, the 2006 COLA will be about 2% and the monthly Medicare Part B premium is expected to increase from $78.20 to $87.70. The Medicare Part B deductible that was just increased in 2005 for the first time since 1991 will also increase from $110 to about $127.

TSCL is continuing to work for more fair COLAs for seniors and endorses “The Consumer Price Index for Elderly Consumers Act” S. 275 which was recently introduced in the Senate by Senator Maria Cantwell. The legislation would increase COLAs by requiring that they be calculated using the Consumer Price Index for the Elderly (CPI-E).

TSCL is also studying measures that would limit the rate of increase in Medicare premium and deductibles.

Sources: 2005 Social Security and Medicare Trustees Reports, March 23, 2005. “Medicare Says ’06 Premiums Will Rise $11, Robert Pear, The New York Times, April 1, 2005