MRGRG-MS - Substantially Higher Part B Premiums in 2007

Since 03-04-06

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From: MRGRG-MS@yahoogroups.com [mailto:MRGRG-MS@yahoogroups.com]
On Behalf Of Floyd Sears
Sent: Friday, March 03, 2006 4:15 PM
To: !MRGRG e-mail network
Cc: jackhollinsworth@yahoo.com
Subject: [MRGRG-MS] [Fwd: Substantially Higher Part B Premiums in 2007]

 

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Subject: Substantially Higher Part B Premiums in 2007:
Date:     Thu, 2 Mar 2006 18:18:35 -0800 (PST)
From:    Jack Hollinsworth <jackhollinsworth@yahoo.com>

Substantially Higher Part B Premiums in 2007 As Medicare Means Testing Starts

For the first time in Medicare's history, millions of seniors will be required to pay substantially more for their Medicare Part B premiums than other seniors next year. In 2007 the government will begin "income relating," or means testing. Higher income seniors will have to pay more for their doctors' services and outpatient coverage. The change, which comes as part of the 2003 Medicare drug legislation, could affect as many as 2.3 million seniors according to estimates by the Congressional Budget Office (CBO).

 

Currently, the Medicare premium that beneficiaries pay ($88.50 per month) is 25% of the total cost. The government pays the other 75%, or $265.50, in 2006. This will change in 2007 when the government starts phasing in higher premiums for seniors with higher incomes, making them pay a higher portion of the total cost. Assuming the Medicare Part B premium continues to rise at the same average rate that it has for the past five years (about 13.4%), the following chart illustrates what estimated premiums may look like for 2007 through 2009.

Income		Monthly Premium in
Individuals	Married Couples	2006	2007	2008	2009
Under $80,000	Under $160,000	$88.50	$100.40	$113.90	$129.20
$80,000 - $100,00	$160,000 - $200,000	$88.50	$113.30	$141.30	$180.90
$100,000 - $150,000	$200,000 - $300,000	$88.50	$133.30	$190.00	$258.40
$150,000 - $200,000	$300,000 - $400,000	$88.50	$153.30	$235.50	$335.90
Above $200,000	Above $400,000	$88.50	$173.30	$281.10	$413.40

 

Means testing of the Part B premium was one of the most controversial elements of the 2003 Medicare drug law. Neither version of the law originally passed by the House or the Senate even contained the provision.

 

The Washington Post reported in 2003 that the House version of the legislation would have required Medicare beneficiaries to pay more for medicine under the new Part D drug plans.

 

The provision to charge higher income beneficiaries more for the Part B premium rather than for prescription drug coverage was inserted at the last minute by the small handful of Congressional leaders who negotiated the final version of the law behind tightly closed doors.

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