The United States Department of Health and Human Services announced today that premiums for Medicare Part B will be reduced for many seniors. Medicare Trustees had projected that the premium for Part B would be $106.60 for 2012. However, HHS announced that Part B premiums would actually be set at $99.90.
In addition Medicare’s Part B deductible will be decreased by $22. Premiums paid for prescription drug plans available under Medicare will remain the same.
What Part B covers
Medicare Part B is government provided health insurance which covers two classes of medical services:
1. Medically necessary services such as doctor visits, outpatient care and home health services. It includes services or supplies that are necessary to diagnose or treat medical conditions.
2. Preventative services are also covered under Part B. These services include many tests and vaccinations For a complete list of preventative services click here.
Medicare Part A (hospitalization) is free for most seniors. Only about 1% of Medicare recipients are required to pay for part A benefits.
Part B, however, requires payment of a premium which is set each year.
Since 2008 most Medicare recipients have been paying $96.40 for Part B. This is because of the law which freezes premiums for Part B in any year when there is no cost of living increase in Social Security payments.
However, since Social Security recipients will get a cost of living increase in 2012, they will have their Medicare premiums adjusted. The average cost of living increase will be about $43 per month. The adjustment for those whose Medicare Part B premiums have been frozen since 2008 will be $3.50.
When announcing the decreased premiums for Part B, HHS Secretary Kathleen Sebelius said
“People with Medicare are seeing higher quality benefits, better health care choices, and lower costs. Health reform is also strengthening the Medicare Hospital Insurance Trust Fund and cracking down on Medicare fraud.”
Join the discussion. Post your comments, concerns and opinions here and make your voice heard.
Comments