The anti-Bush camp is trying to make hay of Friday's announcement from the Department of Health and Human Services that announced the premium increase for Medicare Part B for 2005 decrying both the magnitude of the dollar increase as well as the timing. The truth is that the magnitude of the increase has been roughly known (and published) since March and allegations that the administration orchestrated the release of the statement with the advance of Hurricane Frances is puerile.
The facts:
- Medicare Part B covers physician services, outpatient hospital services, certain home health services, durable medical equipment and other items. The montly premium for 2005 will be $78.20, an increase of $11.60 (17%) over the $66.60 premium in 2004.
- The Part B premium paid by individuals is calculated via formula established by law
- As indicated by the HHS press release linked by the title, a significant part of this increase is due to the new prescription care coverage and additional preventative services newly offered.- The Part B premium paid by individuals covers about 25% of the cost of the program while general revenue pays for the balance
- By law the Part B premium increase may not exceed any beneficiary's cost of living adjustment in their Social Security check. (For the great majority of beneficiaries, the Social Security cost of living increase is likely to be significantly greater than the premium change)
Here is an AARP research piece on Social Security COLAS and Medicare Part B.
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