House Gets Bill to Stop Medicare Part B Premium
Increase as Seniors Face No COLA in 2010
An increase in the Medicare premiums would
effectively reduce Social Security income for seniors
Sept. 24, 2009 – A bill sponsored by Rep. Dina
Titus, a Nevada Democrat, aimed at protecting senior citizens and
others with disabilities from increases in their 2010 Medicare Part B
premiums was introduced in the House of Representatives today, after
receiving a nod from the Ways and Means and Energy and Commerce
Committees.
With Social Security benefits expected to remain at
the same level next year, an increase in Medicare premiums would
effectively reduce Social Security income for seniors. The legislation
is H.R. 3631, the Medicare Premium Fairness Act.
“This important legislation will protect Nevada’s
seniors from an increase in premiums at a time when too many are
struggling to make ends meet,” Titus said.
“The combination of higher premiums and no
cost-of-living adjustment is unacceptable for seniors who count on every
dollar of their benefits.”
The bill is expected to be on the House floor
tomorrow, and has received the support of AARP, the National Committee
to Preserve Social Security and Medicare, the Center for Medicare
Advocacy, Alliance for Retired Americans, and the National Active and
Retired Federal Employees Association.
Background from the Congresswoman’s Office
Currently, 42 million seniors and people with
disabilities are enrolled in Medicare Part B. The standard Part B
premium for 2009 is $96.40 per month, it is (higher for individuals with
incomes over $85,000 or $170,000 for couples). By law, the premium is
calculated each year to cover approximately 25 percent of the cost of
the Medicare program.
Republican View
GOP.gov, the Website for Congressional Republicans,
offers this background on the Titus bill.
“Under current law, the annual increase in the Part
B premium cannot exceed the annual COLA provided through Social
Security. In years where there is no Social Security COLA-expected to be
the case for 2010 and potentially in future years as well-the total
annual increase in the Part B premium must be paid for by three groups:
1) new Medicare enrollees (who by definition are not subject to "hold
harmless" provisions); 2) high-income individuals subject to increased
premiums under the Part B means test; and 3) State Medicaid programs
paying on behalf of their dual eligible beneficiaries.
“The bill provides that for 2010 only, these
beneficiaries-and all Medicare beneficiaries-would not have to pay
increased Part B premiums. Some Members may therefore note that H.R.
3631 would spend nearly $3 billion-at a time when the Medicare Hospital
Insurance Trust Fund is scheduled to be exhausted in 2017-in order to
prevent wealthy seniors (those making more than $85,000 in 2009) from
having to pay any increase in their Part B premiums.”
Premiums would normally increase to roughly $103
next year to cover 25 percent of the program’s cost. However, a current
law “hold harmless” policy ensures that most seniors do not see a
decrease in their Social Security checks if the Part B premium increase
is projected to be greater than the increase in Social Security.
Because of the recession, next year’s Social
Security cost-of-living adjustment is likely to be zero and checks will
not increase; the current law "hold harmless" means that Part B premiums
will not increase for 2010 for 73 percent of enrollees.
The other 27 percent of enrollees are not held
harmless under current law. These include:
● low-income individuals who are eligible for Medicare and Medicaid
(18%, or 7.3 million beneficiaries),
● higher-income Medicare beneficiaries (5%, or 2.1 million
beneficiaries),
● new Medicare enrollees (3% or 1.3 million beneficiaries) and
● enrollees whose Medicare premiums are not deducted from their
Social Security checks (2%, or 850,000 beneficiaries).
Because of the way the law is written, premiums for
the enrollees who are not currently held harmless would be
disproportionately increased to $110-$120 per month, unless Congress
acts. This is the first time that such an interaction has occurred.
This bill would extend the current hold harmless
policy to all Medicare enrollees, meaning that no seniors will see a
decrease in their Social Security checks due to Medicare Part B
premiums.
The Congressional Budget Office (CBO) estimates the
cost of the bill at $2.8 billion for 2010. It meets PAYGO requirements
and is fully paid for by reducing the Medicare Improvement Fund, a
non-controversial set-aside fund in Medicare.
Keep up with the latest news for senior citizens, baby
boomers
Sept. 24, 2009 – A bill sponsored by Rep. Dina
Titus, a Nevada Democrat, aimed at protecting senior citizens and
others with disabilities from increases in their 2010 Medicare Part B
premiums was introduced in the House of Representatives today, after
receiving a nod from the Ways and Means and Energy and Commerce
Committees.
2009 COLA was a real gain for seniors because there
are inflation factors working in their favor