July 11, 2025 Breaking News, Latest News, and Videos

Good News On Medicare Premiums:

RON POLLACK

EXECUTIVE DIRECTOR, FAMILIES USA

At the end of October, people with Medicare got a welcome bit of news. The agency that runs Medicare announced that Part B premiums will increase by less than expected. In 2012, Medicare premiums for most people will increase by only $3.50 a month, from the $96.40 a month now to $99.90 a month. While this will be the first increase in Medicare premiums in several years, it should be noted that this new premium is considerably lower than the $107 that had been predicted last spring.

Premiums were frozen in 2010 and 2011 because there has been no cost-of-living increase in Social Security benefits for the past two years due to the slow economy. When Social Security benefits do not increase, under federal law there can be no increase in Medicare premiums. Happily, in 2012, Social Security benefits will at last increase, by 3.6 percent starting in January. To put this in real terms – the average Social Security benefit for a retiree in 2011 is $1,186 per month. That will increase in 2012 by about $43 per month. Of that increase, only $3.50 will go towards Medicare premiums. It should be remembered that for most people, their Medicare premium is automatically deducted from their Social Security payments. The rest stays in people’s pockets, giving them some real financial help in these tough times.

Some important details:

1) Most people who have joined Medicare in 2010 or 2011 will actually see a premium decrease. Their premiums have been unusually high in order to offset the freeze in everyone else’s Medicare premiums during the past two years.

2) If you’re in a Medicare Advantage plan, your plan may charge an additional premium.

3) If you have Medicare Part D prescription drug coverage, you pay a separate additional premium set by your plan.

4) Finally, high-income people (those whose annual incomes are above $85,000 for an individual or $170,000 for a couple) pay higher premiums.

This very modest Medicare premium increase is particularly impressive considering that Medicare coverage has actually gotten better in the past year. In 2011, thanks to the Affordable Care Act, Medicare started covering most preventive services for free as well as offering an annual wellness visit. Prescription drug coverage has also improved. Yet costs have remained under control.

So what’s going on? Some of the lower-than-expected costs are due to simple math. With Social Security benefits finally increasing, the costs of Medicare can be spread more evenly across all beneficiaries. But that’s only part of the story. The Affordable Care Act made a lot of changes to Medicare and the health care system to make costs more manageable. Fully implementing these changes will take years, but it looks like they are already having an effect. Medicare’s overpayments to private insurance companies are dropping. Efforts to eliminate unnecessary care, like better discharge planning so that people don’t need to return to the hospital after surgery, are starting to take root around the country. And stepped up prosecution of the criminals who defraud Medicare is paying dividends.

If you have limited income, check to see if you might qualify for additional help with your Part B or Part D premiums and costs. You can get information from your State Health Insurance Assistance Program (SHIP), which you can find by calling 1-800-MEDICARE and asking for a referral, or go to the Social Security website: www.ssa.gov/ prescriptionhelp. We still have a long way to go before health care is affordable for everyone. But as we head into 2012, there are some encouraging signs that we’re on the right track.

in News
<>Related Posts

Father-Daughter Authors to Host Book Signing to Aid Fire-Affected Women

July 10, 2025

July 10, 2025

Ten percent of proceeds from book and art sales will benefit the Pacific Palisades Rebuilding Fund, a nonprofit initiative created...

Metro Reports Crime Drop, Higher Rider Satisfaction, and Progress on Major Projects

July 9, 2025

July 9, 2025

The Authority said the drop in violent incidents—down to the lowest level since May 2019—coincided with more uniformed personnel and...

Santa Monica Joins Regional Lawsuit to Halt Unconstitutional ICE Raids

July 9, 2025

July 9, 2025

The motion to intervene seeks to ensure that Santa Monica and other plaintiff-intervenors can advocate for their residents’ rights in...

Promenade Restaurant Introduces Lunch Menu Set at $18 Per Person

July 9, 2025

July 9, 2025

The fixed $18 price point targets commuters and those seeking a power lunch or a change of scenery The restaurant...

Santa Monica Council Votes in Support of Park-Centric Future at Airport Site

July 9, 2025

July 9, 2025

The decision followed a contentious meeting with over 140 public speakers and more than 1,000 emails received by the council...

Housing for Health Chief Appointed to Lead Unified Homeless Services Department

July 9, 2025

July 9, 2025

Veteran Housing Advocate to Oversee Streamlined LA County Services The Los Angeles County Board of Supervisors on Tuesday confirmed the...

‘Adoptapalooza’ Pet Adoption Festival Returns to Main Street This Weekend

July 9, 2025

July 9, 2025

The free, family-friendly event aims to connect adoptable animals with new owners Green Dog Dental & Veterinary Center will host...

Virtual Town Hall to Discuss Proposed Resilient Rebuilding Authority

July 9, 2025

July 9, 2025

The agency, to be run by political appointees, would manage permitting, development, zoning, and funding, modeled after post-disaster recoveries Los...

New Agenda Coaching: Changing Lives in LA

July 8, 2025

July 8, 2025

Students Work Toward Applied Success with Executive Function Coaching Services The demands of daily routines and studies sometimes bear weight...

Saint Monica Prep Students Win Award for Anti-Street Racing PSA Video

July 8, 2025

July 8, 2025

The winning public service announcement, titled “Not Worth It,” was highlighted in a post on X by @LADOTofficial  Students from...

Anti-Drunk Driving Resolution Introduced as City Council Honors Late Palisades Teen Killed in Crash

July 8, 2025

July 8, 2025

Levi, who was set to attend the University of Virginia this fall, was killed by a drunk driver on May...

Free and Reduced Price School Meals Available for Eligible Families in Santa Monica-Malibu District

July 8, 2025

July 8, 2025

Parents in Need Encouraged to Apply, SMMUSD Commits to Nutritious, Accessible Meals By Brandyi Phillips, SMMUSD Chief Communications Officer Santa...

Big Blue Bus to Raise Fares for First Time in Nearly a Decade

July 8, 2025

July 8, 2025

The fare increase aims to offset rising costs for fuel, utilities, and supplies, according to the agency. The Santa Monica...

Shore Hotel: A Local Destination for Summer Fun

July 8, 2025

July 8, 2025

Bring on all things summer. Walking or biking along Santa Monica Pier, you might find yourself taking a pause at...

Santa Monica’s 150th Anniversary to be Celebrated with Vibrant State of the City Event

July 7, 2025

July 7, 2025

Attendees are encouraged to bring blankets, beach chairs, and picnics to enjoy during the performances Santa Monica will mark its...