Rep. Tonko Votes For Bill To Protect Medicare Recipients From Premium Hikes
Press Release
U.S. Representative Paul Tonko (NY-21) voted today in favor of a bill that would protect seniors from unfair increases that could hit their 2010 Medicare Part B premiums. The Medicare Premium Fairness Act will protect 4 million new enrollees and retirees, as well as cash strapped state budgets which cover premiums for 7-million low-income seniors.
"We need to keep health care accessible and affordable for everyone, but most of all for our seniors," said Rep. Tonko. "It would be a mistake to penalize some Medicare enrollees with an unfair increase as they struggle to make ends meet in this difficult economy. This bill restores fairness to the system and provides seniors with the affordable care they deserve."
Under current law, Medicare Part B premiums must cover 25 percent of the program's cost. For 73 percent of enrollees, the yearly increase in premiums cannot be more than the cost of living adjustment for Social Security. Because of the recession, the Social Security cost of living adjustment for next year is projected to be zero, which means nearly three quarters of Medicare Part B enrollees would be held harmless and would not see an increase in premiums.
However, the other 27 percent of enrollees are not held harmless, and would see premiums increased disproportionately from $96 per month to $110-$120 per month. These include low-income individuals who are eligible for Medicare and Medicaid, higher income Medicare beneficiaries, new Medicare enrollees, and enrollees whose Medicare premiums are not deducted form their Social Security checks.
This bill would extend the hold harmless policy to all Medicare Part B enrollees, and none would see their premiums raised.
The non-partisan Congressional Budget Office estimates the bill's cost at $2.8 billion for 2010; it is fully paid for and meets PAY-GO requirements using financing from the Medicare Improvement Fund, which can be used to pay for improvements in Part A and B benefits.
Source