Medicare 2009: CMS Announces No Increase In Part B Premium, Part A Deductible Up 4.3%
September 19th, 2008 by adminCMS announced today that there will be no increase in the standard Medicare Part B monthly premium for 2009 leaving it at $96.40. However, the Part A deductible will increase 4.3% from $1,024 in 2008 to $1,068 in 2009. CMS has not kept Part B rates unchanged since the year 2000. The Part B deductible will also hold steady at $135 for 2009.
Medicare Part A covers inpatient hosipitalization, skilled nursing, and certain home health care services while Medicare Part B covers part of the cost for physician services, durable medical equipment, certain administered drugs, outpatient hospital and certain home health services. About 95 percent of of the nearly 44 million medicare beneficiaries pay the standard Part B premium. The other 5 percent are subject to a higher premium which is based on their taxable income (see below).
| Beneficiaries who file an individual tax return with income: | Beneficiaries who file a joint tax return with income: |
Income-related monthly adjustment amount |
Total monthly premium amount |
| Less than or equal to $85,000 | Less than or equal to $170,000 |
$0.00 |
$96.40 |
| Greater than $85,000 and less than or equal to $107,000 | Greater than $170,000 and less than or equal to $214,000 |
$38.50 |
$134.90 |
| Greater than $107,000 and less than or equal to $160,000 | Greater than $214,000 and less than or equal to $320,000 |
$96.30 |
$192.70 |
| Greater than $160,000 and less than or equal to $213,000 | Greater than $320,000 and less than or equal to $426,000 |
$154.10 |
$250.50 |
| Greater than $213,000 | Greater than $426,000 |
$211.90 |
$308.30 |
Although this is great news for Medicare beneficiaries for 2009, 2010 will likely have to reflect higher costs in Part B as the premiums ususally reflect the higher costs of medical services. Traditionally, medical cost inflation has risen faster than overall inflation. With the baby boomers readily entering Medicare at a rapid and increasing rate demand for medical services is likely to increase. With Medicare expecting to cost $500 billion in 2009, Congress will likely be keeping a watchful eye on expenditures.