Posted on 09/03/2004 4:17:09 PM PDT by MikeJ75
WASHINGTON, Sept 3 (Reuters) - Older Americans will have to pay about 17 percent more next year for their government-run health insurance, U.S. officials announced on Friday.
Starting in January, the elderly will pay $78.20 per month for non-hospital services, up $11.60 from $66.60 this year, the Centers for Medicare and Medicaid Services said.
Most of the increase will cover the program's new prescription drug coverage and preventive services, including an initial physical exam and other tests, said Mark McClellan, head of the federal health insurance program for the elderly and disabled.
The remaining amount, about 25 percent, will be used to help build up Medicare's trust fund, he said, adding that the higher upfront costs will help save money elsewhere.
"Medicare beneficiaries are saving money. They're paying a little more in premiums, but they're getting more savings in their out-of-pocket costs as a result," McClellan said.
But the premium increase is likely to renew controversy over the cost of the new Medicare law passed last year.
The Congressional Budget Office estimated the bill would cost less than $400 billion over 10 years. But after the bill was signed by President George W. Bush, the administration revealed that its own expert put the cost at $534 billion.
That expert, Medicare actuary Richard Foster, also correctly forecast in March that the 2005 premiums would rise by about 17 percent.
McClellan said the bill's added coverage led to the premium increase but added that he expected next year's increase would "not be as high as this year."
POLITICAL IMPACT
The new law, which included optional prescription drug coverage and a formal study of drug importation, was initially thought to be a boon for Bush's re-election efforts.
But it has faced criticism from Democrats and Republicans alike, as well as from beneficiaries who say the prescription drug card program is confusing.
Democratic presidential candidate John Kerry has blasted the new Medicare law and has called instead for cheaper drugs to be imported from Canada.
Kerry campaign spokesman Phil Singer said the increase showed that Bush had failed to contain health care costs, adding "when it comes to helping seniors, George Bush has proven that he's taking us in the wrong direction."
Robert Hayes, president of Medicare Rights Center, called the increase "a body blow to millions of older Americans living on fixed incomes" and blamed it on poor management.
David Certner, director of federal affairs for AARP, said older Americans were paying more than their share of rising health care costs.
"We are facing these huge health care cost increases, and the elderly are picking up a significant part of the tab," he said. AARP is the nation's largest organization representing the elderly.
No doubt the entitlement types will be thrilled to hear this.
Oh my, Ceci (on Foxnews didn't mention this!
I was really going to get upset.
http://www.integritymeds.com/
If you or some of your elders are in the low-income brackets and have lots of prescription needs, check out the above site.
It want hurt us.
I'm sure that you caught that smug look on her face when she mentioned the increase. What a ditz. She's really lucky that she won't put out her e-mail address. She'd be deluged every time that she appears on Fox News.
Ceci is a Philadelphia Yellow Dog Democrat. She needs to find herself a conservative husband to set her straight. And, no, I'm not volunteering. I'd rather go to the dentist.
Thanks for your post, Mike. Husband and I, like almost 100% of our senior friends and family members, are covered for prescriptions and have good secondary and even tertiary coverage for major medical events. Why do we need more govt coverage at a 17% increase?
My guess is that "most of the increase" will go to companies selling motorized wheelchairs on TV at "little or no cost to you!"
As a Medicare recipient, I recognize this for a bargain that it is. Anyone who doesn't isn't thinking.
My old man is PISSED!... and he was a delegate to the RNC...this is one demographic you want to like you
I agree. $78.20 a month? As a single, relatively healthy, 23 year old female the best quote I could get (for Medicare type coverage, meaning all the fixings) was $400 a month. Plus a deductible.
Yeah, but you owe us oldtimers!!!
LOL!
Yes, but at your age, young'un, you should be looking at a MSA, medical savings account, or whatever they call it.
Doesn't 17 percent sound alot worse than $11?
As long as it's out of their pockets and not mine.
We can figure out what her email address is. All we need is one individual's email address at the WaPo. Any one know one?
First, you're assuming that Ceci is computer literate. After watching her on Special Report, I'd say that's doubtful.
Second, looking at people like Dan Balz, Tom Edsall, Dana Milbank, and a few others, it looks like her e-mail addy is probably:
connollyc@washpost.com
I guess it's worth trying.
Washingtonpost.com: White House 2000 ... Ceci Connolly is a national political reporter for The Washington Post.She can be reached at connollyc@washpost.com. © Copyright ... www.washingtonpost.com/wp-srv/ politics/campaigns/wh2000/wh2000.htm - Similar pages
Thanks. I'll probably be writing to her each time that she appears on Special Report or Fox News Sunday.
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