Representative Supports Legislation To Protect Medicare Part B Participants

Press Release

Representative Supports Legislation To Protect Medicare Part B Participants

Today, Representative Joe Courtney supported legislation that will save millions of Medicare part B participants from an unnecessary raise in their monthly premium fees. The Medicare Premium Fairness Act, H.R. 3631, today passed 406-18 with Congressman Courtney's and strong bipartisan support. This legislation will maintain 2009 Part B premium levels in 2010 for all beneficiaries. The premium freeze for 2010 will be paid for by transferring $576 million from the Medicare Improvement Fund.

Representative Courtney stated, "Many seniors live on fixed incomes and in this economy that may not be enough. Raising costs for one of Connecticut's most vulnerable populations could be devastating, which is why I support this important and time sensitive legislation."

Approximately 42 million Americans currently participate in the Medicare Part B program, which covers physicians' services, outpatient hospital services, durable medical equipment, and other medical services. Currently, the average beneficiary pays $94.60 in monthly Part B premiums while premium rates are larger for higher income beneficiaries. Unless this legislation is signed into law monthly premiums are expected to increase from $94.60 to approximately $110 to $120 in 2010.

Without the passage of H.R. 3631 not only seniors would have to absorb the 15 to 20 percent increase but also the state of Connecticut would be obligated to pay the enhanced premium for "dual eligible" seniors who qualify for both Medicaid and Medicare. "The State of Connecticut's fiscal problems are bad enough without adding a new mandated cost from Washington," explained Representative Courtney.

Under current law, a "hold harmless" policy protects seniors from Part B premium increases if their Social Security Cost Of Living Adjustment (COLA) is not sufficient to make up for the increase. This "hold harmless" policy does not protect new beneficiaries, low-income beneficiaries, and high-income beneficiaries. In 2010, the Social Security COLA is expected to be flat. Considering the flat Social Security COLA for 2010, the "hold harmless" policy will protect approximately 73 percent of seniors from the increase. The remaining 27 percent of Part B beneficiaries would have been subject to the increase without the passage of the H.R. 3631.

Recently, Congressman Courtney sent a letter to House Speaker Nancy Pelosi urging action to address the lack of a Social Security COLA in 2010. In his letter to the Speaker making the case for addressing this issue, Congressman Courtney said: "Our seniors can, and must, be a part of our economic recovery - but rising costs and flat benefits will only force our already struggling seniors to sit on the sidelines."

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