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House Approves Freeze On Medicare Premiums

Premiums set to rise nearly $10 without congressional action

By James Limbach
ConsumerAffairs.com

September 24, 2009
Seniors may be getting a break when it comes to Medicare premiums in 2010.

By a vote of 406 to 18, the House decided to keep Medicare Part B premiums at the current $94.40 per month because there will likely be no cost of living increase for Social Security recipients next year. The vote sends the measure to the Senate, were quick action is expected.

Some 42 million seniors and people with disabilities are covered for doctor's visits by Medicare Part B. About three-fourths are exempt from premium increases when there is no increase in Social Security payments.

If Congress does not act, Medicare Part B premiums will rise to $104.20 a month in 2010. The Congressional Budget Office projects premiums could go to $119.40.

No cost-of-living increases are expected on Social Security benefits for the next two years. Benefit adjustments are pegged to inflation, but it has been negative this year, due mainly to the drop in energy prices to below the levels they hit in 2008.

AARP Executive Vice President Nancy LeaMond said by holding Medicare premiums steady for all beneficiaries for the next year, the bill helps "ensure that health care is more affordable for people in Medicare without burdening taxpayers or future generations with new spending."

The bill would not affect scheduled increases in premiums for the Medicare prescription drug program, known as Part D. Average monthly premiums for the drug program will increase slightly, from $28 this year to $30 in 2010.

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