Medicare Monthly Premium Year to Year Comparison

Seniors BEWARE!  Medicare Monthly Premium and your out of pocket deductibles increase nearly every year.  Medicare is a government run and controlled healthcare program.  Medicare was originally designed to provide affordable medical coverage to Senior citizens yet Medicare Monthly Premium and deductibles continue to rise.  Medicare has been an evolving social program since its inception.

• In 1945, Harry Truman sent a request asking Congress for legislation to establish a national health insurance plan.  Opponents immediately began to warn of the dangers of "socialized medicine."  Therefore, President Truman backed off from a plan for universal coverage by the end of his administration. 
• On July 30, 1965, after twenty years of continued debate, Medicare and its companion program Medicaid was signed into law.  The Medicare program was signed into law by President Lyndon Johnson as part of his "Great Society."  Ex-President Truman was the first senior to enroll into Medicare. Medicare was enacted extending health coverage to almost all Americans age 65 or over. Medicaid provided health care services to low-income children, their caretaker relatives, the blind, and individuals with disabilities.
• On July 1, 1966, Medicare was implemented serving more than 19 million individuals. Medicaid funding was available to States starting January 1, 1966 and was phased-in by States over several years.
• In 1967, Early and Periodic Screening, Diagnosis, and Treatment (EPSDT) health services benefit for all Medicaid children under the age of 21 was established.
• In 1972, Disabled 2 million individuals under the age of 65 and those with end-stage renal disease (ESRD) were made eligible for coverage.  Services were also expanded to include chiropractic services, speech therapy and physical therapy.  Also, the Supplemental Security Income (SSI) program was established for the elderly and disabled poor making 18 million individuals automatically eligible for Medicaid benefits.
• In 1977, the Health Care Financing Administration was established in order to administer the Medicare and Medicaid Programs.
• In 1980, coverage of Medicare home health services was broadened. Medicare supplemental insurance (Medigap), was placed under Federal oversight.
• In 1981, freedom of choice waivers and home and community-based care waivers were established in Medicaid; States were required to provide additional payments to hospitals treating a disproportionate share of low-income patients.
• In 1982, the Tax Equity and Fiscal Responsibility Act changed to make it more attractive for health maintenance organizations to contract with the Medicare Program. The act also expanded the agency's quality oversight through peer review organizations.  Hospice benefits were added on a temporary basis.
• In 1983, many federal civilian employees became eligible for coverage.  An inpatient acute hospital prospective payment system (PPS) for the Medicare Program, based on the patients' diagnoses, was implemented to replace cost-based payments.
• In 1984, the remaining federal employees, including President, members of Congress and federal judiciary become covered.
• In 1985, the Emergency Medical Treatment and Labor Act was adopted requiring hospitals participating in Medicare and operated active emergency rooms to provide appropriate medical screenings and stabilizing treatments.
• In 1986, a state option for Medicaid coverage for pregnant women and infants to 100 percent of the Federal poverty level (FPL) was established.  Hospice benefits were made to be permanent.
• In 1987, the Omnibus Budget Reconciliation Act of 1987 strengthened the protections for residents on Medicare in nursing homes.
• In 1988, A major overhaul of Medicare benefits was enacted aimed at providing coverage for catastrophic illness and prescription drugs.  Coverage was also added for routine mammography.
• In 1989, Catastrophic coverage and prescription drug coverage were repealed.  Coverage was added for pap smears.
• In 1990, A Medicaid Prescription Drug Rebate program was established.  Specified low-income Medicare beneficiary eligibility was established for Medicaid Programs to pay Medicare premiums.  Additional Federal standardization for Medicare supplemental (Medigap) insurance was established.
• In 1992, Physician services payments became based on fee schedule.
• In 1996, The Aid to Families with Dependent Children entitlement program was replaced by the Temporary Assistance for Needy Families block grant.  The welfare link to Medicaid was severed. A new mandatory low income group not linked to welfare was added.  Enrollment and or termination of Medicaid were no longer automatic with receipt or loss of welfare cash assistance.
• In 1997, Medicare+Choice were enacted under the Balanced Budget Act. Some provisions prove to be so financially restrictive when regulations were unveiled that Congress is forced to revisit the issue in 1999.
• In 1998, an Internet site was established to provide updated Medicare information.
• In 1999, Congress "refines" Medicare+Choice and relaxed some Medicare funding restrictions under the Balanced Budget Refinement Act of 1999. A toll-free number, 1-800-MEDICARE (1-800-633-4227), was established nationwide and the first annual Medicare & You handbook was mailed to all Medicare households.
•  In 2000, Medicare+Choice Final Rule took effect.  Prospective payment systems for outpatient services and home health agencies took effect.
• Medicare Part B premium was established at $45.40 per month.
• In 2001, the Health Care Financing Administration was renamed the Centers for Medicare & Medicaid Services (CMS).
• On December 8, 2003, President George Bush signed the Medicare Prescription Drug, Improvement, and Modernization Act (MMA) into law.  It created a prescription drug discount card until 2006.  MMA allows coverage for new preventive benefits.  In 2006, the new voluntary Part D outpatient prescription drug benefit would be available to an estimated 43 million Medicare beneficiaries from private drug plans, and Medicare Advantage plans.  Also, a federal subsidy to Employers who provided retiree drug coverage comparable to Medicare was added.  Section 629 of this Act required the raising of the Part B deductible in 2005 and indexing it each year thereafter.

The proponents of current move for Healthcare Reform continue to tell us, the American people, that their proposed government run Healthcare system will decrease our cost for medical insurance and medical care. As you can see in the table below, this is definitely not the case. Medicare deductibles and premiums are updated annually in accordance with formulas that have been set by law. In 2002 the deductible for the first day of an inpatient hospital stay was $812.00. The same coverage deductible for the year of 2010 is $1100.00. That’s a whopping $288 or a 35% increase in just nine (9) years.

The monthly premium for the Part “B” coverage is the amount of money that is deducted out of your Social Security check. In 2002, this monthly premium deduction was $54.00. In 2010, the premium deduction will increase to $110.50. Friend, that’s over a 100% increase in nine (9) years.

The Part “B” deductible is amount the money you must pay first, that is, before any Part “B” benefits will be paid. In 2002, the Part “B” deductible was $100.00. In 2010, this deductible will increase to $155.00. This again represents a 55% increase in nine (9) years.

There are also substantial increases in the deductibles amounts for the 61^st to 90^th day benefit, the 90^th to 150^th day, the 60 Day (Lifetime) benefit and the Skilled Nursing Facility benefit.

Each year, except for 2010, social security retirement recipients receive a cost of living increase. This income increase is then immediately countered by their increased Part “B” monthly premium that is deducted from their check.

We are told that a government run health system will reduce our medical cost. If this is the case, then why is the Medicare Monthly Premium and deductibles increasing at this alarming rate? The only way a government controlled health system will control cost is to limit care or ration benefits.

I agree that we are in need of some health-care reform such as tort reform and guaranteed coverage for those who individuals who are un-insurable, We do not need government run socialized medicine, coverage for illegal immigrants and rationed care that chooses who lives and dies.