Medicare Part B Premiums Rise Again
Additional Options Can Increase Overall Savings
The cost of Medicare Part B, the part of Medicare that helps pay for doctors services, diagnostic tests, ambulance services and medical equipment is rising again. Monthly Medicare Part B premiums for next year will be $88.50, up $10.30 from 2005’s $78.20 premium. Despite the premium increase, Medicare had added options that are expected to increase seniors overall savings next year.
A study performed by PricewaterhouseCoopers LLP shows the average senior will save $700 on prescription drugs next year with the new Medicare Prescription Drug benefit. For example, in Florida, the average senior will save about $758 on drugs with the prescription drug benefit and in Arizona the average senior will save about $628 with the benefit.
“We are urging seniors to sign up for the Medicare Prescription Drug Benefit this year, because the longer a senior waits to enroll the higher their premiums will be if they decide to enroll later” said Senior Center Vice President Michelle Plasari.
In addition, more seniors than ever will have Medicare Advantage plans available to them. Medicare Advantage plans offer additional coverage at a lower cost than traditional Medicare. On average these plans save beneficiaries around $100 a month compared to enrollment in fee-for-service Medicare. “We suggest you take time before open enrollment ends on May 15, 2006 to look over the new options so you receive the benefits from a Medicare plan that best fits your individual needs,” Plasari said.
According to the Centers for Medicare and Medicaid Services (CMS) about one in four Medicare beneficiaries have been identified as in need of extra assistance and will qualify to have most or all of their Medicare Part B and/or Part D premiums reduced next year.
To learn more about the new Prescription Drug coverage, Medicare Advantage plans or any other aspect of Medicare coverage, seniors are urged to contact Medicare at 1-800 MEDICARE (1-800-633-4227).
2006 Medicare Premiums and Deductibles (out-of-pocket costs)
Part A (Hospitalization) Deductible
$952 (covers 60 days in the hospital each year)
Part B (Routine Care) Premium
$88.50/month
Part B Deductible
$124/year
Part D (Rx Drug) Premium
average $32/month (many plans available for under $20/month)
