Will You Have to Face Higher Medicare Premiums Soon?
As a medical beneficiary, you may not love to hear the term ‘higher Medicare premium’. For some relief, most of you won’t have to pay higher premiums for Medicare Part B next year, but there are certainly a few ‘not-so-lucky’ groups who may have to face higher Medicare premiums in the coming days. As per the present law, premiums of Part B can’t go up faster than the rate of increment of Social Security annual cost-of-living. And according to the predictions of the Congressional Budget Office, the cost-of-living for Social Security recipients is most unlikely to go up in 2010 and 2011. But it doesn’t ensure rise in health insurance costs for all the Medicare recipients. According to a latest report, about 75% of the Medicare recipients won’t get affected by the premium increase, but the rest 25% will have to pay higher premiums. Medicaid recipients are those who may have to pay higher premiums in the coming days. The states and the federal government funded Medicaid pays Medicare Part B premiums for those low-income groups who qualify for both the government programs. It will soak up the larger premiums for the 17% of Medicare beneficiaries qualified for Medicaid. It is the state, not the individual that pays the higher cost of Part B premium. High-income retirees are another group that may face higher premiums in future. Seniors who have a modified adjusted gross income of $85,000 or above (for individuals) and $170,000 (for couples) in the year 2009, are already paying higher premiums. New enrollees could be the other group which will face higher premiums soon. Those retirees, who are going to sign up for Social Security or Medicare Part B, will have to pay higher premiums in the near future. According to the Medicare Trustees, though the recipients of Medicare Part B are currently paying $96.40 per month, and are expected to pay the same amount next year as well, but the amount will increase to $104.20 per month for a quarter of retirees in 2010. In 2011, the cost would be $120.20 per month. |
OK so I know “high income” retirees will pay the higher part b.
But what I’d like to know is why do “new” enrollees into part B have to pay the higher rate?, those already on Social Security.
I’m drawing social security this year for the first time, but am not old enough for Medicare, so I still didn’t get a COLA like everybody else, yet when I do turn 65 in 2011 and apply for Medicare part B which of course will be deducted form my SS, I will have to pay a higher rate than the rest on SS since 2009, even though I won’t see a COLA either.
Hell this and the usual price rise will really be a “cut” for us that started getting SS at a time there is no COlA. So does that also mean anybody paying this 96.40 now will continue to pay 96.40 until there’s another COLA?. weird!
As the cost-of-living for Social Security recipients is most unlikely to go up in 2010 and 2011, so it may be a reason why new enrollees have to pay the higher rate.
And most Medicare beneficiaries will continue to pay the same $96.40 Part B premium amount in 2010.
A bit weird. And it needs to be cautious.
? well OK but I don’t quite understand that reply at all.
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OK so here’s another twist, as this was the first year I got SS and this SAA-199 I now have another question for anyone who has been on this Medicare part B a while.
I just got my 1st 1099, from this social security stuff, mine was I expected, since I don’t have part B yet commin out, but on her’s she has. Yet in block 5 “net”Benefits for 2009 it shows the full amount (taxable) incl the part B deductions?????. I thought the deal would show like what she made, minus the part B payments, and tax the difference????. And yeah I already called SS and IRS nether can come up with an answer, asswipe federal workers get raises and sit there stupid as usual. So can you ask some one you know that IS on SS and paying Part B from their SS why this is? Or why they incl the payments in a total net?. All I can come up with on my own is maybe you have to itemize to get the deductions, I don’t, but it would seem stupid, since your having them taken out at the time you get what’s left from SS.Anyway just a question in case you know, So on the 1040 you have to put on what’s in this block 5 of the SAA-1099 and that’s the full amount you got, not any reduction from the Part B payments. And there’s NO place I can see on the IRS worksheet for SS that lets you deduct the medicare payments either. Like I said, I DO NOT itemize, but it doesn’t seem right to pay part B right from your SS check, and still have it show up in the net block.
man this whole SS/medicare thing is nutty, so not only are “new” part B people gona have to pay higher even with out a COLA on the SS they NOW are getting when they apply, but in my case I have to pay regular income tax on 85% of the total because I make over 32 lousy grand in military retirement, while the dumb asses seem to keep any payments to Part B in the total received, which means to me if your paying for part B and have no itemized deductions your paying tax on those payments too, since they’re back in the total received.
Its like they’re creating a whole new group of notch type babies.