House passes bill prohibiting ‘unfair’ Medicare Part B premium hikes

By a vote of 406-18, the U.S. House of Representatives passed a bill that will prevent seniors and people with disabilities from experiencing an increase in their Medicare Part B premiums next year.

Charles Rangel

Charles Rangel

House Ways and Means Committee chairman Charles B. Rangel (D-N.Y.) and Health Subcommittee Chairman Pete Stark (D-Calif.) proposed the Medicare Premium Fairness Act (HR 3631), seeking the application of a consistent Medicare Part B premium for all beneficiaries in 2010, matching its current level.

In a statement, Rangel said that the nation’s seniors are already experiencing difficult financial times, with retirement funds disappearing amid a recession and a possible freeze on Social Security benefits.

There are 42 million seniors and people with disabilities enrolled in Medicare Part B. Premiums were scheduled to rise from $96.40 per month to $103 per month to cover 25% of the Medicare program. The bill instead uses $2.8 billion for 2010 by reducing the Medicare Improvement Fund, a set-aside fund in the program.

“While current law protects most of them already, the prospect that some may face a disproportionate increase in their Medicare premiums is inherently unfair,” Rangel said. “This legislation deals with this unprecedented situation, protecting these seniors and people with disabilities from these unjust premium increases.”

Stark added a cost-of-living adjustment for Social Security recipients was not expected for next year, leaving seniors without added income to afford a premium increase.

“These hikes would threaten the pocketbooks of new enrollees and retirees, as well as state budgets, which cover premiums for low-income seniors,” he said.

The bill won endorsement from groups including the AARP, the National Committee to Preserve Social Security and Medicare, the Center for Medicare Advocacy, Alliance for Retired Americans and the National Association of State Medicaid Directors.

Joining Rangel and Stark in introducing the bill were Rep. Dina Titus (D-Nev.), Energy and Commerce Chairman Henry Waxman (D-Calif.), Chairman Emeritus John Dingell (D-Mich.) and Health Subcommittee Chairman Frank Pallone (D-N.J.).

The Senate must now pass the premium bill, with discussion expected soon, according to published reports.

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