On July 11, 2006, CMS originally estimated that the Part B premium would increase by 11.2 percent to $98.40. Our original projections for 2008 and 2009 were based on that estimate and the average rate of premium increases over the past five years.

Therefore, TREA Senior Citizens League has revised its projections of future premiums for Medicare Part B for 2008 and 2009 based on last week’s CMS announcement. The below chart assumes that the base Medicare premium continues to grow at the same average pace that it has since 2002, approximately 11.6 percent per year.

Note: Chart subject to slight change.

Estimated Part B Premiums 2007 - 2009 As Means Testing Begins
Effective January 1, 2007, the government will start determining the Medicare Part B premium based on a person’s income. Assuming that the base Medicare premium continues to grow at the same pace that it has since 2002 (about 11.6% per year) here’s what premiums will be for 2007, and what they may look like for 2008 and 2009 as the government begins “income relating” or Means Testing.

Estimated Part B Premiums Under Means Testing

Income:  Individuals	Income:  Filing jointly	Monthly premium in 2006	Monthly premium in 2007*	Monthly premium in 2008**	Monthly premiu  in 2009**
Under $80,000	Under $160,000	$88.50	$93.50**	$104.30	$116.50
$80,000 - $100,00	$160,000 - $200,000	$88.50	$106.00	$132.20	$163.00
$100,000 - $150,000	$200,000 - $300,000	$88.50	$124.70	$173.90	$232.90
$150,000 - $200,000	$300,000 - $400,000	$88.50	$143.40	$215.60	$302.80
Above $200,000	Above $400,000	$88.50	$162.10	$271.82	$372.60

Source: *Medicare Premiums and Deductibles for 2007, Centers for Medicare and Medicaid Services, September 12, 2006.
** Estimates assume annual rate of increase of 11.6%, the average since 2002 (past five years)

TREA Senior Citizens League opposes the means testing of Medicare. Read more about our position on means testing or read our op-ed in The Rocky Mountain News.

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With 1.2 million members, TREA Senior Citizens League is one of the nation's largest nonpartisan seniors groups. Located just outside Washington, D.C., its mission is to promote and assist members and supporters, to educate and alert senior citizens about their rights and freedoms as U.S. Citizens, and to protect and defend the benefits senior citizens have earned and paid for. Please visit www.SeniorsLeague.org or call 1-800-333-8725 for more information.

PRESS CONTACT: Brad Phillips, Phillips Media Relations
202-776-0640 (w) 202-446-4060 (c) Brad@PhillipsMediaRelations.com

September 2006