Medicare Part B premiums will take another hefty jump next year. According to the most recent government estimates, Medicare Part B premiums are expected to rise 15% to $89.20 per month in 2006. This would make the second year in a row that the Part B premium will increase $11 or more per month. In January, 2005 the monthly premium rose by a record $11.60 to $78.20 per month. In 2004 and 2005 Medicare premiums jumped an incredible 31% and according to the 2005 Medicare Trustees report, there will be “significant increases in the next few years.”
In addition, under provisions of the new Medicare drug law seniors now have rising Part B deductible costs. The deductible is estimated to increase from $110 to about $126. Until this year, the Medicare Part B deductible had been $100 since 1991.
Government officials blamed the increase on longer physician office visits, extra tests ordered by doctors, and higher charges for chemotherapy drugs and medications given in doctor’s offices. In recent years however, Congress has repeatedly rescinded previously planned payment reductions for doctor services and has increased reimbursements to doctors and most other health care providers as well. The higher payments are reflected in Medicare Part B premiums.
While TSCL believes Medicare-approved physician and other provider payments should be sufficiently high to ensure access to services, a 31% jump in Medicare Part B premiums in just two years clearly indicates that costs are out of control. TSCL feels that prudent, reasonable adjustments, including slowing the rise in provider payments should be made to keep beneficiary and government costs in line.
Sources: “Medicare Says ’06 Premiums Will Rise $11,” Robert Pear, The New York Times, April 1, 2005. “2005 Medicare Trustees Report,” March 23, 2005.
