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Senior Citizen Politics
Higher Income Seniors to Pay More for Medicare Drug
Plans in New Budget
Higher premiums based on income began this year for
Part B
 Feb
4, 2007 Higher income senior citizens will pay higher premiums in
Medicare's drug program next year, if a budget proposal by President
Bush is approved. It was reported last week that President Bush will
propose reducing $70 billion from Medicare and Medicaid in his new
budget to be released Monday. The New York Times reports today that one
part of the Bush plan is to impose a surcharge on premiums for
Medicares prescription drug benefit, as he did this year for those in
Medicare Part B.
This year, for the first time, Medicare began
charging a higher monthly premium for senior citizens earning $80,000 or
more per year. The Part B rates increase with higher incomes up to
$200,000 a year. The amounts determining the premium bracket are doubled
for couples filing joint tax returns. For example, the higher rates
begin at $80,000 for an individual or $160,000 for a couple.
In the current Part B plan, the bracket rates are
set to increase with inflation. But, the New York Times report by Robert
Pear says "the president will ask Congress to 'eliminate annual indexing
of income thresholds,' so that more people would eventually have to pay
the higher premiums."
In other words, the bottom rate say $80,000
would stay at that amount and more senior citizens would pass the
threshold just due to inflation.
"The president contends that he can make the rule
changes without any action by Congress. But Congress could try to block
some or all of the changes," says the Times story.
Pear writes, "the proposal, expected to raise $10
billion over the next five years, is one of many advanced by Mr. Bush in
a $2.8 trillion budget that aims to eliminate the deficit by 2012."
Other actions he is expected to propose including
holding back on the fees paid to home health agencies, hospitals,
nursing homes and other health care providers are expected to produce
most of the savings.
>>
Read the complete story in the New York Times
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