House passes legislation to freeze Medicare premiums for 2010

WASHINGTON, D.C. -- The U.S. House of Representatives has passed legislation to freeze Medicare Part B premiums for 2010 to ensure Medicare remains affordable for seniors and disabled Americans. U.S. Congressman Bart Stupak co-sponsored H.R. 3631, the Medicare Premium Fairness Act, which recently passed the House 406 to 18 with strong bipartisan support.

"This bill is about fairness and it ensures that all seniors and disabled citizens are treated equally under the Medicare Part B program," Stupak said. "Given the current state of our economy, this is not the time to be raising Medicare premiums while Social Security checks remain stagnant. Allowing the premium increase to occur would have further burdened Medicare recipients and cash-strapped states at a time when neither can afford it."

Due to the current state of the economy and an inflation rate of zero percent, Social Security recipients are not expected to see a cost of living adjustment (COLA) in 2010, the first time no increase has occurred since automatic COLAs were implemented in 1975. Medicare Part B premiums cover physician and outpatient care and are deducted from Social Security checks. Under current law, Part B premiums cannot increase more than the Social Security cost of living adjustment for 73 percent of Medicare enrollees. Without congressional action, the other 27 percent of Medicare Part B enrollees would have seen their premiums increase to $110-$120 a month because Part B premiums are required to cover 25 percent of Medicare Part B costs.

H.R. 3631 freezes all Medicare enrollees’ premiums, ensuring that 2010 Part B premiums will remain at the current level and seniors will not see a decrease in their Social Security checks.

Prior to the bill passing, 4 million new enrollees and retirees, as well as state budgets which cover premiums for 7 million low-income seniors, were facing a 20 percent increase in Part B premiums. Those potentially impacted by the increase included low-income individuals eligible for Medicare and Medicaid, higher income beneficiaries and beneficiaries whose Medicare premiums are not deducted from their Social Security checks.

The bill is fully paid for by using money from the Medicare Improvement Fund established to make improvements to Medicare Part A and B benefits.

Audio from the Congressman about H.R. 3631 can be found at http://www.house.gov/list/hearing/mi01_stupak/20090924medicare.mp3.