The New Medicare Part B Premium Increase for 2012 was Less Than Expected
The new Medicare part B premium increase for 2012 was announced yesterday. The increase was much smaller than expected at only $3.50. This brings the monthly premium for most retirees to just under $100. With most people seeing an increase of about $43/month in their social security payments an increase in the insurance of only $3.5 for part B the core of the plan is a welcome amount compared to the much higher estimates of $107 that the administration suggested in May.
This increase in premium is the 1st in a few years as there has been no cost of living adjustments (COLA) due to the lack of inflation. This year inflation rates had risen triggering a COLA as well as the increase in insurance premiums.
New annual deductible amounts were also announced yesterday with the Part B dropping $22 down to $140 per year. Part A of the plan on the other hand will see an increase in the annual deductible for 2012 of $24/year. This brings the deductible up to $1156.
The calculation to determine the premium for Part B, the medical insurance part which excludes in- patient hospital stays, is partly determined by how much is planned to be spend on the Medicare doctors next year. It was decided that they would receive the same or a little more than this year. According to the way the law regarding this is written though, there should have been a significant reduction in payments for the doctor’s services. This reduction was blocked my Congress.
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