Report: Baby Boomers Will Pay More for Medicare in 2011
A new report by the American Institute for Economics Research (AIER) says baby boomers that apply for Medicare next year will pay more than those already in the system.
This disparity is the result of the little-known “hold-harmless provision” which says that those receiving Social Security benefits cannot be charged higher Medicare premiums if their benefits do not increase. And in 2011, they will not increase. But Medicare costs will. And under the law, Part B premiums must cover 25 percent of the program’s cost.
Those enrolling in Medicare for the first time in 2011 will reportedly pay a minimum of $24 a month more for Part B premiums than those who enrolled in 2009 or earlier. Higher income enrollees – individuals with annual incomes of $85,000 or more and couples that earn more than $170,000 a year – will pay even more.
AIER president Charles Murray said that he believes it is unfair for 2011 enrollees to pay more for the same coverage, especially at a time when older Americans are under great financial stress. He said, “Charging new enrollees higher Part B premiums for the same coverage raises serious ethical and legal questions.”
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