Publisher’s
note: This is the ‘release’ from the Medicare Web Site. Claims of
improved benefits are made by the Medicare administrators, and the
‘causes’ given for the increase are based upon positions of the
Medicare administrators.
The Medicare Part B
monthly premium will be $88.50 in 2006, an increase of $10.30 from
the current $78.20 premium. The 2006 premium is roughly the same as
the CMS actuaries have been projecting since early this year.
Though
premiums are rising, most Medicare beneficiaries will see
significantly lower out-of-pocket health care costs in 2006 because
of the savings in drug costs from the new Medicare prescription drug
benefit. Also, about one-fourth of beneficiaries can receive
assistance that pays for their entire Part B premium, and about
one-third of beneficiaries can receive assistance for their Part D
premium.
Continued
rapid growth in the intensity and utilization of Part B services is
the primary reason for the premium increase. This growth is seen in
physician office visits, lab tests, minor procedures, and
physician-administered drugs. It also includes rapid growth in
hospital outpatient services. Additionally, increased
fee-for-service expenditures contribute to higher payment rates to
Medicare Advantage health plans. Also, enrollment in Medicare
Advantage plans is increasing as those plans have become much more
widely available. These factors are leading to higher Medicare costs
related to the Medicare Advantage program. It should be noted that
Medicare Advantage plans result in average beneficiary savings of
$100 a month.
In addition,
part of the premium increase is necessary to increase assets that,
for accounting purposes, are held in the Part B trust fund. As the
Medicare Board of Trustees noted in their March 23, 2005 report to
Congress, a premium increase of 12 percent or more would be needed
in 2006 to prevent a further decline in Part B trust fund assets and
to help restore those assets to an adequate level.
Premiums and Deductibles for 2006
Part A
Premium: $393 (not paid by 99 percent of beneficiaries)