CQ HealthBeat: Medicare Part B Premium Increase Modest For 2013 With health care inflation relatively stable, officials at the Centers for Medicare and Medicaid Services released rules Friday that include a $5-per-month increase in Medicare Part B premiums and a $28 hike in the hospital inpatient deductible. The Part B premium will reach a milestone, however, topping $100 a month. The monthly payment for Part B, which covers doctor visits, outpatient hospital services, home health care and other items, will be $104.90 next year, compared to the current $99.90. And the deductible for inpatient hospital stays will go to $1,184 in 2013 from $1,156 this year. One item will be decreasing: the Part A monthly premium, which pays for inpatient hospital stays, skilled nursing facilities and some home care for about 1 percent of Medicare beneficiaries who do not automatically qualify for the program. That premium will be $441 a month, down $10 a month from this year (11/16).
Video: Medicare Chief Actuary: Spiking Part B Premiums
AARP Statement on 2013 Medicare Part B Premium Increase
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Monthly Premiums for Medicare Part B Set To Increase Slightly in 2013
Meanwhile, premiums for Medicare Part A — which pays for inpatient hospitals, skilled-nursing facilities and some home health care services — will decline by $10 to $441 in 2013. Part A deductibles will increase by $28, from $1,156 last year to $1,184 in 2013 (Zigmond,
Finally the Medicare Part B Premium for 2013 is announced!
Since the Social Security Cost of Living Adjustment is 1.7% for 2013, this should be less than anyone’s increase in their monthly Social Security retirement benefit. If you receive only $700 a month from Social Security (one of the lowest amounts), your Social Security benefit should increase $11.90, leaving you a small increase in monthly income after the Medicare Part B premium has been deducted from your check.
2013 Medicare Part B premium and deductibles rise, but not by much
These and other parts of the law will result in significant savings. We estimate that the health care law will save the average person in traditional Medicare $5,000 through 2022. Earlier this year we projected that the standard premium for Medicare Part B (which covers certain doctors’ services, outpatient care, medical supplies, and preventive services) would rise by more than $9.00 a month in 2013. Today we announced that the actual rise will be lower—$5.00—bringing 2013 Part B premiums to $104.90 a month. By law, the premium must cover a percent of Medicare’s expenses; premium increases are in line with projected cost increases. Medicare Part B premiums have gone up slowly over the past five years – an average of less than 2 percent a year, or $8.50 total.
Medicare fees rise for 2013
After putting in some of my hard earned wages and our goverment “at work” borrowing it, Social Security should not be cut. Our president and congress continue getting their same salary for life while some of us are barely keeping our heads above water. These politicians should only be paid when they are in office and limited to the time they are working for us. They miss votes, get paid for public appearances, write books, campaign, travel all over, appear on TV shows and we are paying those costs plus their salary. Even with my 401K, it is a struggle. I was a casualty of the crash. Too young to afford to retire and too old to find another job in a difficult market. I had to go on Social Security as soon as I was eligible. My $950 a month doesn’t cover my expenses but I can’t do without it. Gas, groceries, taxes, have all gone up but my benefit keeps shrinking. Being a woman and being paid less than my male counterparts hurts me more now than it did when I was working. Change was for the worst and I’m certainly not moving forward!
Medicare Premium Changes Announced for 2013
Earlier this year CMS projected that the standard premium for Medicare Part B (which covers certain doctors’ services, outpatient care, medical supplies, and preventive services) would rise by more than $9.00 a month in 2013. However, the good news is that the increase will be lower — $5.00 — bringing 2013 Part B premiums to $104.90 a month. By law, the premium must cover a percent of Medicare’s expenses; premium increases are in line with projected cost increases. Medicare Part B premiums have gone up slowly over the past five years – an average of less than 2 percent a year, or $8.50 total.
CMS Announces 2013 Medicare Premiums and Deductibles
When making its calculations, CMS maintained a contingency margin in the event that actual costs surpass anticipated costs. This year, CMS found that the two most important factors affecting its calculation of the contingency margin were the impending changes to the physician fee schedule that are scheduled to result in a nearly 30 percent reduction in physician fees; and anticipated sequestration, mandated by the Budget Control Act of 2011 (P.L. 112-125), that could decrease benefit payments by up to 2 percent and result in a $4.3 billion reduction in expenditures. CMS explicitly stated that the Secretary of HHS directed the agency, when calculating the contingency margin, to assume that Congress would change the physician fee decrease to 0 percent. In making its calculation, CMS also assumed that the sequestration requirements would be either reduced or postponed. Although far from controlling, the agency’s assumptions could be cause for cautious optimism among providers and beneficiaries who anxious about the potential cuts.
Information on Medicare part b premiums for 2013
The standard Medicare Part B premium is determined by a formula contained in the 1997 Balanced Budget Act, which set the premium at 25 percent of total program costs. The remaining 75 percent of program costs are financed through general revenues. The Medicare Modernization Act of 2003 (MMA) requires higher-income beneficiaries to pay a higher percentage of program costs, resulting in multiple tiers of premiums based on income. The 2013 and 2014 Part B premiums haven’t been decided yet. Also note: There has been lots of confusion about Medicare Part B premium rates in recent years, because Medicare beneficiaries who receive Social Security were protected from premium increases in 2010 and 2011 under what is called the “hold harmless” provision, which freezes Medicare Part B premiums if there is no Social Security cost-of-living adjustment.