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Medicare Premium `Sticker Shock` Ahead
Alexandria, VA (February 27, 2006) - A little-known provision of the 2003 Medicare legislation is likely to cause "sticker shock" for hundreds of thousands of seniors next year, warns a national non-partisan seniors issue advocacy organization. For the first time in Medicare's history, some beneficiaries will have to pay more than other seniors for their Part B doctor and hospital outpatient coverage. And a proposal that's part of President Bush's 2007 Medicare budget cuts would dramatically increase the number of Medicare beneficiaries affected in coming years.[1] This year the monthly premium for Part B is $88.50 per month. For most beneficiaries, the premium is deducted from monthly Social Security payments. Next year, for the first time, the Part B premium will be determined by income. McCutchen, who is a retiree himself, says he was very surprised to learn that means testing of the Part B premium was never part of the original versions of 2003 Medicare legislation voted on in the House and Senate. "Means testing seniors for their Medicare Part B coverage went far beyond what was originally envisioned by the House and Senate," asserts McCutchen, "and it undermines a founding principle of Medicare. It was stuck into the 2003 legislation at the last minute, by a handful of congressional negotiators behind tightly closed doors," McCutchen says.[4] Although Social Security benefits are based on the size of a person's paycheck during working years, Medicare has always provided the same hospital and doctor benefits to all beneficiaries and charged them all at the same rate. "This founding principle of equality in Medicare benefits will end on December 31, 2006," McCutchen points out. Although individuals with incomes lower than $80,000 would not be affected by the higher premiums for now, President Bush has proposed removing the annual inflation adjustment. By doing so, more and more seniors over the years would be subjected to higher premiums. "According to White House estimates, the higher costs to seniors explode in only a few years," McCutchen points out. [5] "In addition, with growing Medicare costs putting pressure on the program, Congress could change the income levels and increase premiums at any time," he adds. "Medicare premiums are already increasing far too much. We urge seniors to contact your Members of Congress to protest means testing. Please tell your Members of Congress to reject means testing and to enact measures that ensure equality of Medicare benefits for all," McCutchen urges. TSCL is a national group of politically active seniors concerned about the protection of their earned Social Security, Medicare, 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 our organization, please contact TREA Senior Citizens League, Department S606, 909 N. Washington St., Suite 300, Alexandria, VA 22314, or visit our website at: www.tscl.org. [1] Major Savings & Reforms in the President's 2007 Budget, OMB, February 2006. Distributed by The Senior Exchange, Inc. February 2006 | ||||||||
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