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Medicare premiums going up $5 a month for 2013

By Ricardo Alonso-Zaldivar

Associated Press

POSTED:
LAST UPDATED: 09:28 a.m. HST, Nov 16, 2012


WASHINGTON » Medicare premiums are going up $5 a month in 2013, the government said today. It's less than expected, but still enough to eat up about one-fourth of a typical retiree's cost-of-living raise next year.

Medicare chief Marilyn Tavenner said the new "Part B" premium for outpatient care will be $104.90 a month. In most cases, it's deducted directly from a beneficiary's monthly Social Security check. Currently the premium is $99.90 a month.

Earlier this year, the government projected an increase of as much as $9 for 2013, but health care inflation has remained modest.

Still, advocates for the elderly didn't see much to cheer about, particularly since Medicare cuts are on the table in budget negotiations between President Barack Obama and Republicans in Congress. Obama has promised to protect beneficiaries, but even his plan calls for upper-income retirees to pay more.

"These increases aren't as big as projected, but they are still increases," said Joe Baker, president of the Medicare Rights Center, a New York-based advocacy group. "Our fear is that as policymakers discuss deficit reduction, they'll pile even more costs on to seniors."

High-income beneficiaries, those making above $85,000 a year individually or $170,000 for a couple, will face bigger increases. They will pay an additional $42 to $230.80 a month, depending on income. Most low-income beneficiaries have their premiums paid by Medicaid.

Tavenner also announced that Medicare's hospitalization deductible will increase by $28, to $1,184. The deductible is the amount a person must pay before health insurance kicks in. Many seniors have some form of additional coverage to handle their Medicare hospital deductible.

The annual deductible for outpatient care will increase by $7, to $147.

Coverage for outpatient care under Medicare Part B is optional, but more than 90 percent of the program's 52 million beneficiaries sign up. Medicare covers people 65 and older, the disabled and those with serious kidney disease.

Part B pays for office visits to doctors, preventive services and medical equipment. It's a good deal by any measure, since 75 percent of the cost is borne by taxpayers, with premiums set to cover the remaining 25 percent. Still, many beneficiaries are on tight budgets so the monthly premium is a closely watched indicator.

Last month the government announced a 1.7 percent cost-of-living increase for the 56 million Americans on Social Security. That works out to raises averaging $19 a month come January. The typical increase for retired workers will be slightly larger.

Obama's health care law reined in Medicare spending by curtailing payments to hospitals, insurers, drug companies and other service providers. Democrats want to focus the next round of cuts on providers, particularly pharmaceutical companies. But Republicans are looking for more significant changes in the program, such as increasing the eligibility age to 67.

The health care law improved preventive care for Medicare recipients and cut costs for people with high prescription drug bills. It also initiated a multitude of experiments on how to deliver quality care at lower cost for taxpayers. And it set up a cost control board to limit future increases in Medicare spending.







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Maneki_Neko wrote:
Thanks, Barry. There goes that little bump in the social security totals.
on November 16,2012 | 08:48AM
dontbelieveinmyths wrote:
Ho Mazie, I thought you were going to save us. A big majority of your campaign was about preserving medicare and not hurting the seniors. What happened? Nobody listening to you up there?
on November 16,2012 | 09:01AM
Grimbold wrote:
dontbelieveinmyths: Did you really believe her? There were enough gullible people who did - that's how she got elected.
on November 16,2012 | 09:28AM
dontbelieveinmyths wrote:
No. I didn't believe her. My post oozed of sarcasm. Mazie is clueless.
on November 16,2012 | 10:45AM
J_C_M wrote:
Just wait, it will get worse for 2014,
on November 16,2012 | 09:31AM
honopic wrote:
5 bucks a month? $60 a year? Minors! How about a pension cut from $1700 to $350? Would that wop yo jaws? Not from the gov't, but from a company u worked for 34 years.
on November 16,2012 | 03:07PM
Hawaiianhaole wrote:
So for everyone who believed and voted for these clowns I THANK YOU.
on November 16,2012 | 03:14PM
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