Who Will Pay Higher Medicare Part B Premiums?
Medicare Part B premiums generally rise each year. Payments for the coverage are automatically deducted from the recipients Social Security payment. However, many people will remain paying the 2009 payment rate while others will be charged the new 2010 rates for their coverage. People that are new enrollees in 2010 will pay the new higher rate. People above a certain income level will pay the new higher rate, regardless of when they enrolled. Others, with very large incomes will pay an adjusted rate that is even higher than the new monthly charges. States that pay for Part B coverage will also be charged the new, higher 2010 rate.
Why Has My Medicare Part B premiums stayed the same this year?
Medicare Part B premiums rise each year. However in 2010 many people will retain their previous rates because there was no Cost Of Living Allowance (COLA) added to their social security income this year. There are laws concerning Medicare part B that specifically state that a benefits check can not be lowered due to an increase in the cost of this supplement. This is why many people are still paying the 2009 rates for the Part B supplement while new enrollees are paying the higher premium.
Will I Have To Pay The New, Higher Rates In 2011 For Medicare Part B?
Recipients will be required to pay the new 2011 rates for Medicare Part B if they receive a COLA increase. Since a cost of living increase will offset the raised cost of the insurance premium, there will be no conflict of the consumer protection law. This does not guarantee that there will be a COLA increase in future years, or for that matter, a raise in premiums. Each budget year is determined by the government entities that govern this program. As more baby boomers enter into the age to receive Medicare benefits it is sure to raise the cost of these benefits.
Send this page to a friend ...