Medicare's Monthly Premium Won't Rise in 2009

Sept. 20 -- FRIDAY, Sept. 19 (HealthDay News) -- Good news for millions of American seniors: Medicare's standard Part B monthly premium in 2009 will remain the same as in 2008, the U.S. Centers for Medicare & Medicaid Services said Friday.

The $96.40 rate means 2009 will be the first year since 2000 that there hasn't been an increase in the standard premium over the previous year, the agency said. In addition, the 2009 Part B deductible will be the same in 2009 as it is this year -- $135.

Medicare's Part B program covers the health care of seniors and disabled people. The monthly premium paid by beneficiaries covers a portion of the cost of physicians' services, outpatient hospital services, certain home health services, durable medical equipment and other items.

While increased use of Part B services is expected in 2009, the higher anticipated costs are "offset by a substantial reduction in the premium 'margin' needed to maintain an adequate contingency reserve in the Part B trust fund account," the CMS explained in a news release.

The Part B premium is based on a beneficiary's annual income. If gross income is greater than certain amounts ($85,000 in 2009 for a beneficiary filing an individual income tax return or married and filing a separate return, and $170,000 for a beneficiary filing a joint tax return), the beneficiary has to pay a larger portion of the estimated total cost of Part B benefit coverage.

One advocate for Medicare recipients said the decision to keep Plan B premiums the same is "welcome news."

"News that health care premiums are not going up is rare these days. The stability in the Part B premium is good news for people with Medicare struggling to cope with rising prescription drug costs and medical bills," Robert M. Hayes, president of the Medicare Rights Center, said in a news release.

However, the CMS also announced Friday that the Part A deductible will rise $44, to $1,068 in 2009. The Part A program covers hospital and hospice care as well as short stays in nursing homes. About 99 percent of Medicare beneficiaries covered by this program do not pay a monthly premium. The deductible is their only cost for up to 60 days of Medicare-covered inpatient hospital care in a benefit period.