Government
Part of Social Security increases to go to Medicare
NEWS IN BRIEF — Posted Nov. 8, 2004
For the typical senior, nearly half of the 2.7% increase in Social Security benefits in 2005 will go toward offsetting next year's hike in Medicare premiums, federal officials said. The Social Security cost-of-living adjustment will average $25 per month. Seniors enrolled in Medicare Part B will have $11.60 deducted from monthly checks to pay for a 17.4% increase.
The Medicare premium rise is due in part to greater spending on physician services next year.
"The 2005 increase in Medicare patients' premiums pays for many essential enhancements to the Medicare program for our nation's seniors, including a preventive physical exam for every new Medicare patient, enhanced cardiovascular and diabetes screenings, increased access to physicians and other health professionals, and a needed infusion to reserves to protect the very future of the Medicare program," said AMA President John C. Nelson, MD, MPH.
Congressional Democrats used the announcement to renew calls for a cap on annual Medicare premium increases of 25% of Social Security cost-of-living updates.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/11/08/gvbf1108.htm.