Part B premium rates are based on the projected cost to the federal government and Congress, an unpredictable factor. Historically, premiums go up each year. For example, Medicare Part B cost recipients $5.30 in 1970. By 1973, it was up to $6.30, though it was reduced to $5.80 in July and $6.10 in August that year. The premiums continued to increase and reached $31.90 per month in 1989. That rate came from the Medicare Catastrophic Coverage Act of 1988, a change that was intended to expand the program to cover some prescription medications and reduce out-of-pocket costs. It was repealed in 1989.
Premium Support: Medicare's Future and its Critics
 While the Wyden–Ryan proposal has attracted the most media attention, Senators Tom Coburn (R–OK) and Richard Burr (R–NC) are also champions of a well-fleshed-out premium support plan. On Capitol Hill, the basic idea of a defined contribution for Medicare financing goes back to the 1980s, when Representatives Richard Gephardt (D–MO) and David Stockman (R–MI) offered a Medicare voucher program. Their proposal was supported by the Reagan Administration. During the 1990s, Senator John Breaux (D–LA) and Representative Bill Thomas (R–CA), co-chairmen of the National Bipartisan Commission on the Future of Medicare, unveiled a comprehensive Medicare premium support proposal modeled after the FEHBP, but it was opposed by the Clinton Administration. Today, top analysts from a variety of institutions—the Brookings Institution, American Enterprise Institute, National Center for Policy Analysis, and Progressive Policy Institute—have endorsed this approach.
Medicare Part B Monthly Premium 2016
Actually, these numbers are valid for most persons on Medicare. You will have to pay a higher premium if you filed an individual tax return last year and reported income over $85,000 or $170,000 for a joint return. Depending on the amount of your taxable income, you may have to pay between $170.50 up to the maximum Part B premium of $389.80 per person. Fortunately, income-related adjustments affect less than 5 percent of Medicare beneficiaries. If you have to pay a higher Part B premium because of your income, you should be notified by Social Security.
Comparison of Medicare Premium Support Proposals
The brief compares the premium support provisions of these proposals, including how the level of premium support for beneficiaries would be determined; whether traditional Medicare would remain an option; what protections would be provided for low-income beneficiaries; and whether and how the proposals would cap federal spending on Medicare. These differences have important implications for Medicare beneficiaries, the federal budget, health care providers, and private health plans.
NY Medicare / New York Medicare Specialist
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