Basic Medicare premium to rise 15% next year

[Craftsman]

WASHINGTON — The basic Medicare premium will shoot up next year by 15 percent, to $110.50 a month, federal officials said Monday.

The increase means that monthly premiums would top $100 for the first time, a stark indication of the rise in medical costs that is driving the debate in Congress about a broad overhaul of the health care system.

About 12 million people, or 27 percent of Medicare beneficiaries, will have to pay higher premiums or have the additional amounts paid on their behalf. The other 73 percent will be shielded from the increase. That's because, under federal law, their Medicare premiums cannot go up more than the increase in their Social Security benefits, and Social Security officials announced last week that there would be no increase in benefits in 2010 because inflation had been extremely low.

Among those who face higher premiums next year are new Medicare beneficiaries, high-income people and those whose Medicare premiums are paid by Medicaid. Premiums can be as high as $353.60 a month, or more than $4,200 a year, for Medicare beneficiaries who file tax returns with adjusted gross income greater than $214,000 for an individual or $428,000 for a couple.

http://www.denverpost.com/news/ci_13598557

[Craftsman]

1. Lets see no COLA for SS and this, seniors will not be happy in 2010

[rucky]

16. From the excerpt in the OP, that clearly won't happen.

But it's easy to conclude that from the headline alone. Just from the knee-jerk reactions here, my guess is this it'll be really easy for opposition to distort the facts and get people worked up.

[indepat]

How ludicrous for the government to play like there is no inflation although medical costs

have spiked 15%: how disingenuous, mendacious and cruel. :grr:

[napi21]

2. Well, my husband & I are both on Medicare, but not in that

high income catagory. I don't have any sympathy for someone with an AGI over $214,--- having to pay a whopping $13 more a month!

A bigger concern of ours is what's going to happen to premiums of the supplemental policies? THERE is whre the ins. co's have total control!!! I guess I'll find out soon. All co's will be releasing their new premiums rates between 10/15 and 11/15.

[elizfeelinggreat]

7. Amen

I am not on Medicare but I'm with you on the sympathy for those in that income bracket who might have to pay the equivalent of three designer coffees more a month. Boo hoo.

[Bluenorthwest]

3. So, inflation has been flat, except for the 15% increase

in premiums for Medicare? How do they do that with a straight face? Costs are rising, but not rising. Prices are higher. But inflation is flat. OK. Whatever.

[Statistical]

4. Meh how much has Medicare risen in last 5 years? What % of your income is healthcare.

If healthcare is 10% of your income and it rose 15% once in last 5 years then it contributed.....

15% * 10% / 5 = Medicare contributed 0.3% to core inflation on an annual basis.


Now if it was a 15% increase every year and it was on 100% on the goods & services you buy it might mean something.

Inflation is negligble. We are in slight deflationary environment (which is far more dangerous IMHO)?

[Bluenorthwest]

5. We are not talking about me here

But if you want to, each and every bill I have is higher and about to rise even more. All of them. Gas prices are up daily, heating is going up 4% over last year.
I'm living life, not playing games with numbers, but if I were trying to make the point you want to make, I'd be coming in with actual figures. You tell me how much medicare has risen in the last five years. I don't know. But you are using an unknown figure in what claims to be about figures. I'm just saying that prices are up, as proved by the increase in premiums in Medicare. No inflation, says the government to Seniors and the disabled, except for the 15% rise in the cost of medical care. The only way to explain such thinking is by using half word equations, replacing the bad numbers with words and questions.
How much has Medicare risen in the last five years? You tell me, that is your end of things. But you have to know that to have an actual opinion, now don't you?
I can tell you this about my personal costs by percentage of income- it is far, far higher than the percentage of income paid by any member of Congress. Far higher.

[Statistical]

8. How is your gas bill up compared to last year?

Gas was >$4.00 last year and now <$2.50. Has your consumption increased 80%?

Sorry there is no inflation. The major problem is a lack of wage growth. Retail price indexes have been falling. It has been killing retailers. Companies are reporting shrinking margins. Price can't rise and at the same time retailers & producers showing reduced margins.

No inflation means an AVERAGE. So medicare rose 15% but plenty of other products & services have declined compared to the peak in 2008.

Deflation is a real and serious concern. More so that inflation right now. If govt tries to tackle imaginary inflation they could push us into a deflationary cycle which is far far far worse. You think we have high foreclosures & loan defaults now just wait if we have say 5% deflationary rate (-5% inflation) it would triple.

[Statistical]

9. What timing.... Report out. today. Prices declined again (-0.6%) in September

http://www.bloomberg.com/apps/news?pid=20601087&sid=aDFJnk7txix0

Wholesale prices in the U.S. unexpectedly fell in September on lower fuel costs, a sign inflation remains muted and the Federal Reserve has leeway to keep borrowing costs low as the economy recovers.

The 0.6 percent decrease in prices paid to factories, farmers and other producers was the second drop in three months and followed a 1.7 percent rise in August, the Labor Department said today in Washington. Excluding food and fuel, so-called core prices declined 0.1 percent.

Companies won’t be able to pass on higher costs to consumers until demand is more sustained as the economy emerges from the worst recession in seven decades. Citing “subdued” inflation, Federal Reserve policy makers pledged last month to keep the benchmark interest rate at a record low for an “extended period.”

-----------------------

Long term inflation is a concern. Fed has pumped massive amounts of liquidity into market. As output rises the Fed must pull that back and raise rates to avoid inflationary spike. However today we simply do not have enough demand growth to see real inflation.

[Bluenorthwest]

11. "Excluding food and fuel"

and forgetting the increase in health care and insurance costs, that is, excluding the bulk of any seniors expenses, prices are flat. Just not for food, fuel, or health care.

[Statistical]

14. Try reading harder.

The 0.6 percent decrease in prices paid to factories, farmers and other producers was the second drop in three months and followed a 1.7 percent rise in August, the Labor Department said today in Washington. Excluding food and fuel, so-called core prices declined 0.1 percent.

So:
ALL GOODS AND SERVICES = -0.6%
CORE INFLATION = EXCLUDING FOOD & FUEL = 0.1%

So what this means is that FOOD & FUEL fell faster than the average because when we exclude them price only fell 0.1%.

Core + (Food & Fuel) = Total
-0.1% + (x%) = -0.6%

So we know x% < -0.6%. Maybe it is -1%, maybe it is -2% but it certainly is < -0.6%.

[Bluenorthwest]

10. Who's talking about gas? You are. I did not mention gas.

My heating is not gas. Do you think all heating is natural gas? That is one hell of an assumption. My utility company just informed us all that we will see a 4% increase in rates due to rising costs on their end.
Here's a deal for you. You can go out there and explain to those who are not able to pay their ever rising bills that those bills have not actually risen during the next election cycle. How's that? Bring a chart and see how it goes. I looked it up for you, by the way, Medicare part B, the part we are speaking about, cost $66.60 a month in 2004. It is now $110. So get some chalk and get ready to explain to people why they should be having more buying power, not less, as prices are doing nothing but falling all around.
Costs are flat, except the one we charge you for, that is up 15%. There is no inflation, just much higher prices on virtually everything.

Edited to note that I mentioned 'gas' meaning gasoline. Two costs, gasoline, up daily, AND heating costs, up 4%. So I did use the word gas and the word heat in the same sentence, a challenge for some I suppose. If only we said petrol, all would have been clear...

[Statistical]

13. Your exact words "Gas prices are up daily,"

Gas is 30% cheaper than last year. Gas is contributing to DEFLATION and substantially so.

While gas has risen in last month it is still far below the peak. Americans right now this month are spending less on gas then they did last year.

[Fresh_Start]

6. Gee and thats without any new legislation

how can they blame that increase on the PO when one doesn't exist

[ecstatic]

12. If that's the case, then there should have been a COLA for SS nt

[rucky]

15. People earning over $200K a month should be okay with paying $315/mo.

If not, they could always shop around for private insurance.