The New Year Brings New Premium Hikes for Seniors in Medicare, Says NCPSSM: Some Premiums Will Significantly Increase on January 1st

WASHINGTON, Dec. 27 /PRNewswire-USNewswire/ — Beginning in 2007, more than one million Medicare Part B beneficiaries will be forced to pay much higher premiums than other seniors in the same program. The Medicare Modernization Act of 2003 (MMA), which established the Part D prescription drug benefit, requires that for the first time in the program’s 41 year history seniors will no longer pay the same amount for the same health care services.

”Means testing will begin to drive wealthier and healthier seniors out of traditional Medicare and into private plans; in fact, some analysts predict 50,000 seniors will leave in the first year alone. This exodus will increase overall costs, threaten public support for Medicare and not coincidentally, boost profits for private insurers.”…Barbara B. Kennelly, President/CEO

Congress’ stated goal for means testing of the Part B premium is to save money; however, the Congressional Budget office reports that means testing saves barely three-tenths of one percent of Medicare’s budget over the next ten years. Meanwhile premiums will double and triple for some seniors over just the first three years of means testing.

More information on Medicare means testing and its impact on seniors can be found in our Viewpoint: Medicare Means Testing at http://www.ncpssm.org/news/archive/vp_meanstesting/.

The National Committee, a nonprofit, nonpartisan organization acts in the interests of its membership through advocacy, education, services, grassroots efforts and the leadership of the Board of Directors and professional staff. The work of the National Committee is directed toward developing better- informed citizens and voters.

The National Committee to Preserve Social Security and Medicare

CONTACT: Pamela Causey of the National Committee to Preserve SocialSecurity and Medicare, +1-202-216-8378 or causeyp@ncpssm.org

Web site: http://www.ncpssm.org/news/archive/vp_meanstestinghttp://www.ncpssm.org/