Wednesday, September 13, 2006

Medicare Part B Premiums now become progressive

At age 63, I am not eligible for Medicare, although I can see that there will be business opportunities in unscrambling the whole Part D drug benefit program, as well as the myriad of supplementary insurance and long term care plans. There is still a new for clearer roadmaps to information in this area. When Part D was being implemented, it was difficult for many seniors to find the best plan as there were so many carriers and the information about their premiums and prescription coverage limitations was so dispersed.

It should be noted that Medicare Part A, inpatient coverage, normally does not charge a premium for seniors who meet social security eligibility (40 covered quarters). Those with 30-39 covered quarters would now pay a monthly premium of $216, and certain other people could purchase coverage for a monthly premium of $393. The web reference from Medicare itself is here.

On September 13, 2006 Medicare Part B announced an increase in premiums and would now make them progressive.

The new premiums (as of 1/1/2007):
Income: Premium
<$80000 $93.50
$80000.01 to $100000 $105.00
$100000.01 to $150000 $124.70
$150000.01 to $200000 $143.40
> $200,000 $162.10

The source is Christopher Lee, The Washington Post, p A9, Sept 13, 2006, "Medicare Premiums To Rise 5.6% in '07".