Medicare premium for doctor visits unchanged for 2009

The premium and deductible for Medicare physician coverage will not increase next year for only the sixth time in the history of the program, the Bush administration announced Friday.

As was the case this year, in 2009 Medicare recipients earning less than $85,000 a year or couples earning less than $170,000 a year will have to pay $96.40 a month for benefits under Medicare Part B, the part of the program that covers services not provided in hospitals, such as physician care, home healthcare and medical equipment, Centers for Medicare and Medicaid Services (CMS) officials said on a conference call with reporters.

{mosads}CMS acting Administrator Kerry Weems said Medicare Part B premiums did not increase just five previous times since 1965, most recently in 2000.

Likewise, the deductible for Medicare Part B will remain at $135.

For Medicare Part B beneficiaries above the base income levels, monthly premiums will range from $134.90 to $308.30.

The deductible for Medicare Part A, which covers hospital services, will increase, however. In 2009, beneficiaries must meet a $1,068 deductible before their Medicare Part A benefits kick in, an increase of $44. The Part A premium will rise $20 to $443 per month next year, but only about 1 percent of beneficiaries have to pay this premium.

The lack of an increase in Part B premiums for next year is not the beginning of a trend, however, CMS said. “In the future, we’re going to have to go back to raising the premiums” on an annual basis, said Richard Foster, CMS’s chief actuary.

CMS is able to keep the premiums flat even though the cost of the program increased in part because increases in recent years brought in more money than expected, Foster said. In addition, the agency redirected $9.3 billion from Medicare Part A. Since mid-2005, Medicare Part B was erroneously paying for some hospice services that should have been paid by Medicare Part A, he explained.

“Lawmakers should not use today's announcement as an excuse to rest.  The average 73-year-old in Medicare has seen his or her premium double since joining the program,” said AARP Executive Vice President Nancy LeaMond. “Americans old and young continue to struggle with skyrocketing health care costs.  And the weakening economy is only making it harder for people — especially retirees on fixed incomes — to pay their health care bills.”