Medicare in
2005: Increased costs for everyone
and a few new benefits that
may help some
December 12,
2004, New York, NY– Upcoming changes in the Medicare program for
2005 mean increased out-of-pocket costs for older adults who are
already struggling to safeguard their health as well as their
wallets and a few new benefits that may help some people.
“The biggest
change to the Medicare program next year—a 17 percent hike in
the monthly premium—means older and disabled Americans will
forgo food, heat and basic necessities to pay for their health
care,” says Robert M. Hayes, president of the Medicare Rights
Center. “Consumers need to get savvier and savvier to make ends
meet. We’ll be there to help.
The consumer group compiled a
list of four key changes in Medicare in the coming year.
1.Medicare Part B
premium is increasing to $78.20.
The Part B premium increase is the largest in Medicare’s 40-year
history. If your income is less than $1,068/month (or $1,426 if
you’re married), you may qualify for a Medicare Savings Program
that helps pay for your Part B premiums, deductibles and
coinsurance. Contact your state Medicaid office for more
information.
2.Medicare Part B
deductible is increasing to $110.
The Part B deductible that you pay when you first use your Part
B coverage each year will be $110, up $10 – the first Part B
deductible increase since 1991. Medicare Part B covers
outpatient services such as doctors’ services, laboratory tests
and hospital outpatient services.
3.Subsidy for
prescription drugs. People with
low incomes ($12,569 for an individual and $16,862 for a couple
in 2004 – it will be a bit higher in 2005) can get a $600 credit
toward their prescription drugs in 2005 on a Medicare-approved
drug discount card, if they do not have drug coverage from a
current or former employer, Medicaid, the Federal Employee
Health Benefits Program, or Tricare.
The credit is reduced by $150 for every three months enrollment
is delayed. (If you apply for a card by the end of 2004, you
will get $600 credit in 2004, and
another $600 again automatically in 2005. Any credit left over
from 2004 will carry over to 2005.) To find out about
Medicare-approved drug discount cards and other ways to save
money on drugs in your area, call your State Health Insurance
Assistance Program. You can get their number from Medicare at
1-800-633-4227.
4.Preventive
benefits. New Medicare enrollees
will be entitled to one physical examination in the first six
months after enrolling in Part B. The “Welcome to Medicare
Physical” includes height, weight, and blood pressure
measurements, an electrocardiogram, education and counseling.
Medicare is now covering blood tests to screen for
cardiovascular disease, including tests for cholesterol, lipids
and triglyceride levels. For people at high-risk for diabetes,
Medicare will cover laboratory tests to screen for the disease.
Talk to your doctor for more information.