Medicare part B premiums surcharge to weathy

[short]

I was reading in the paper this morning that Medicare will be surcharging people with incomes over certain amounts up to 4X times the basic premium by 2009. Projected top end numbers were about $400 per month total for Part B premiums at the highest income levels. They expect to raise more money this way but since Part B is optional would any folks paying these kind of premiums not change to some other insurance? Folks with higher income would be more likely to be able to afford a higher deductable.

I have not shopped or priced Supplemental insurance as my husband is about 3 years away but I can't imagine with the above projections that we would go with Part B coverage. Am I all wet here?

Any imput would be appreciated.

Short

 

[Steamboat Bill]

I am a physician and read this a few weeks ago. It amazes me that the American public is NOT in an uproar about this. But appraently it is the law now. Thus, if you save your money for retirement, by living frugal your entire life, the government WILL charge you more for Medicare than if you spent your money rather than saving for retirement. Thus, enjoy it now babay as nothing is guaranteed other than taxes and death.

Besides Medicare is still the BEST insurance out there.

I was reading in the paper this morning that Medicare will be surcharging people with incomes over certain amounts up to 4X times the basic premium by 2009. Projected top end numbers were about $400 per month total for Part B premiums at the highest income levels. They expect to raise more money this way but since Part B is optional would any folks paying these kind of premiums not change to some other insurance? Folks with higher income would be more likely to be able to afford a higher deductable.

I have not shopped or priced Supplemental insurance as my husband is about 3 years away but I can't imagine with the above projections that we would go with Part B coverage. Am I all wet here?

Any imput would be appreciated.

Short

 

[rapmarks]

this is great
I retired early (from a job not covered by social security) and worked to get my credits so we would both qualify for Medicare. My husband gets zero social security and i will get $51 a month. Now he will have to pay more for Medicare than for our old insurance plan. why did I bother to work for a pittance for all those years.

 

[short]

Besides Medicare is still the BEST insurance out there.

This might be true at $100 per months for Part B but would this be true at $400 per month?

Part B covers Doctors and Outpatient procedures and still might require some copays or deductables so its not 100 percent coverage.

As far as I can tell Part A (hospitalization)is still provided at no extra cost or surcharge.

Short

 

[Steamboat Bill]

The surcharge for 2007 will be computed by the Social Security Administration, using income data obtained by the Internal Revenue Service (IRS) from tax returns for 2005.

If an individual has modified adjusted gross income of $80,000 to $100,000, the surcharge will be 13.3 percent, which adds about $13 to the monthly premium, for a total of about $111.50. For a single person with income of more than $200,000, the surcharge will be 73.3 percent, or about $72 a month, for a total premium of about $170.50.

When the transition is complete in January 2009, according to Medicare actuaries, the total premium for a person with income of $80,000 to $100,000 will be 1.4 times the standard premium. A person with income of $100,000 to $150,000 will pay twice the standard premium. A person with income of $150,000 to $200,000 will pay 2.6 times the standard premium, and a beneficiary with more than $200,000 of income will pay 3.2 times the standard amount.

If the basic premium rises 10 percent a year — a relatively conservative forecast — the most affluent beneficiaries will be paying premiums of more than $375 a month in 2009.

Under current law, the $80,000 threshold and the income brackets will be adjusted each year to keep pace with inflation, as measured by the Consumer Price Index.

 

[Ann-Marie]

Part B covers Doctors and Outpatient procedures and still might require some copays or deductables so its not 100 percent coverage.

Short

The copay per year is only about $150.00. That's it for the entire year. Almost all Physicians accept Medicare, so it is a lot easier than trying to find a Doctor that takes your insurance.

 

[rapmarks]

Yes, Anna Marie - we are getting killed by high deductibles and high copays. If not going to a ppo physician or facility after meeting the deductible, we pay 50% copay, 20% otherwise. Furthermore, you can get an xray at a ppo facility, and discover the radiologist is not a ppo provider.
To top it off, although our policy states we are covered for certain yearly exams, we not only have not been able to get them paid for, they aren't even applied to our deductible, but rejected for being preventative. I have handled paperwork for my mother in law and parents serious illnesses, and they have barely paid a penny out of pocket. We spent over $2000 out of pocket last spring, with minor problems.
So we are looking forward to my husband getting on Medicare and getting to go in and have his doctors visits covered for conditions that might have been preventable at one time, but are already in existance and no longer preventable. (so why is a visit called preventative care!)

 

[riverdees05]

Steamboat Bill,

Is there a website that we can read more about this. Sounds like we have been sold out by our Senators and Representatives and didn't even know about it.

 

[Steamboat Bill]

www.medicare.gov

However, the new rates were from a press release in almost all newspapers a few weeks ago.

I also, would argue, what the goverment defines as "wealthy"

 

[Icarus]

An interesting comparison might be how much that coverage would cost if you can buy it privately. Somebody said it was optional. Will private insurers adjust their medigap policies to add optional part b replacement coverage?

-David

 

[riverdees05]

I don't think that it made our small town newspaper or if it did, I missed it. I agree with your comment on "definition of wealth". If I win PowerBall Wednesday night, then I would consider myself wealth at over 130 Million.

 

[Steamboat Bill]

Living in South Florida, I define wealth as anyone with assets over $10 million. Unfortunately, I am not there yet.

 

[Rose Pink]

I define wealth as anyone with assets over $10 million.

It's all relative, isn't it. We tend to compare ourselves upward not downward. Thus, even though most of us tuggers would be wealthy by the average joe's standard, we don't consider ourselves as such because we are not in Bill and Oprah's income bracket. We take vacations in nice timeshares where we enjoy the beauty and adventure of nature, the thrill of themeparks, the excitement of live entertainment, etc. We are rich if we just stop to consider how most of the human race has lived. How often do we go hungry because there is no food? We have roofs over our heads (well, maybe not Cat after hurricane season--hope you make it through each and every one safely), food in our big bellies, clothes on our backs, and weeks deposited in our timeshare accounts.

Still, thinking about medicare and pensions (and whether or not they will still exist when I retire) can be very scary. With all the brain power out there, hopefully someone will be able to come up with a solution. Having worked in healthcare, however, I strongly believe that the only real solution lies in each of us individually and that is to take better care of ourselves. I've seen firsthand, over and over again, the downward health spiral of our overconsumption of calories, alcohol and tobacco. Most diseases would be avoided or postponed many years if we chose healthier lifestyles. In other words, it's my fault and your fault. Politicians and CEOs are not the sole cause of our dilemma. So the next time you belly-up to the buffet or light up your smoke, realize that you and I are the problem.

 

[Steamboat Bill]

Rose Pink posts are very true...

Yes, we are jaded in South Florida, LA, NYC, etc...

Here is the latest news from today's Sun Sentinel

http://www.sun-sentinel.com/news/na...11,0,3888821.story?coll=sfla-news-nationworld

 

[Icarus]

But some Medicare experts worry that wealthy retirees will abandon the program and rely on private insurance instead, leaving poorer, sicker people in Medicare.

That's what I was getting at.

-David