President Obama to Propose Medicare Premium Increase for Top 5% of Recipients

Feb 25, 2009 7:57pm

President Obama to Propose Medicare Premium Increase for Top 5% of Recipients

To partially fund the Health Care Reserve Fund, another new source of revenue — or tax hike — the President will propose applying the same income standard for premiums for Medicare Part D (prescription drugs) that applies already to Medicare Part B (doctors’ visits).

That is to say, right now couples who make more than $170,000 a year already pay higher premiums for Medicare Part B.

If the President’s proposal goes through, they will also pay higher premiums for prescription drugs. This will impact the top five percent of Medicare recipients, the Obama White House anticipates, or about 1.5 million people, and will raise $8.1 billion over 10 years.

This would start in FY 2011.

- jpt

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