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

[Lasher]

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).

<snip>

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.

Means testing radically changes the nature of Medicare. The program was designed as universal social insurance with everyone paying a uniform premium and receiving a standard package of benefits. Supporters of means testing argue that it's needed to cut Medicare costs and make the program more sustainable. Government estimates, however, indicate that higher premiums for some will not save Medicare.

http://www.tscl.org/NewContent/102589.asp

The 2006 monthly premium for Medicare part B is $88.50. In 2007 it will be about $88.50 for individuals who make less than $80,000 and couples who make less than $160,000. The 2007 premium is estimated to be $106.00 for individuals making up to $100,000 and more for those whose income is above this level Hit the above link to the full article for more.

This makes it difficult to compare premium increases with those of prior years. But even if you use only the lowest monthly premiums (for individuals making less than $80,000) the average annual increase during Junior's 8 years (2002 to 2009) is 11.21%. During Clinton's 8 years it was 4.19% and for Poppy it was 10.33%. Source data for these calculations was obtained from the above article, and from a CRS Report for Congress. The second year of presidency was used as each executive's starting point because increases were effective in January before a president actually assumes or leaves office.

[aquart]

1. Does everyone know this is happening? Does anyone?

Another Republican outrage.

[Lasher]

2. No, most people don't know.

I posted the same thing in GD, trying to promote awareness. Please help spread the word.

[eagler]

3. The damage this administration has inflicted on the nation is

UNFORGIVABLE! IMPEACHMENT NOW!