Morning Briefing
Summaries of health policy coverage from major news organizations
Nearly A Third Of Medicare Beneficiaries Face Steep Premium Increases
The New York Times: No Social Security Raises Even If Medicare Soars
The 60 million people on Social Security will not receive any cost-of-living increase in their benefits in 2016, the government said Thursday, but because of a quirk in federal law, nearly one-third of Medicare beneficiaries could have record increases in their premiums unless Congress intervenes. With millions of older Americans on fixed incomes facing that one-two punch, the Obama administration is urging Congress to stop — or at least moderate — the health insurance premium increases. (Pear, 10/15)
The Wall Street Journal: Social Security Recipients Won’t Get Cost-Of-Living Bump In 2016
The absence of any cost-of-living bump also triggers a “hold harmless” provision that prevents Medicare premiums from rising for about 70% of beneficiaries, who will continue to pay their existing monthly premiums of $104.90. Under current law, however, premiums for the other 30% of beneficiaries—including new enrollees, those who don’t receive Social Security benefits and enrollees with higher incomes—must be raised substantially to compensate. Federal actuaries estimated in July that those monthly premiums would rise 52% to $159.30. (Timiraos, 10/15)
The Washington Post: Bad News For Retirees: No Social Security Cost-Of-Living Increase, Higher Medical Costs For Many
The lack of a raise triggers other bad news for retirees: Higher medical costs. Most Americans have their outpatient care premiums for Medicare Part B deducted directly from their Social Security checks, and the annual cost-of-living increase usually covers any increase to premiums. When it doesn’t, a longstanding “hold harmless” law protects about 70 percent of seniors from having their Social Security payments reduced. (Rein, 1015)
CNN Money: What A Zero COLA Means For Your Medicare Premium
The bad news is that leaves 16.5 million people to shoulder the increase for Medicare Part B. Those Americans will see a 52% jump. ... This hike will impact four groups of people: Retired federal workers who get a pension from the government instead of Social Security; Those with income above $85,000 a year, who already pay more for Medicare Part B than everyone else; People who are signing up for Medicare for the first time; Those whose premiums are paid for by Medicaid. (Lobosco, 10/15)
NBC News: Some Medicare Beneficiaries Face Premium Sticker Shock Next Year
If you are already on Medicare, or could apply immediately, and you were going to start Social Security benefits in the next year or so, and you are not subject to a high income threshold, some financial advisers say you should consider applying for both of those benefits rights now. By filing earlier and receiving both your Social Security benefits and Medicare by the end of 2015, you'll fall into the group that will be exempt from the [2016] premium increase. Generally filing a month in advance is sufficient. (Epperson, 10/15)
USA Today: Budget Talks May Need Billions For Medicare Fix
The nascent budget talks between Congress and the White House over how to fund the government, raise the debt ceiling and pay for highway construction just got more complicated. The Social Security Administration's announcement Thursday that benefits will not increase in 2016 means that retirees will not have extra income to pay for anticipated increases in Medicare Part B premiums and higher deductibles. ... Protecting seniors from higher deductibles and premiums could cost around $10 billion, and if Congress plans to pick up that tab, it would have to offset that with budget cuts or revenue increases elsewhere. (Singer, 10/15)
Politico Pro: Beneficiary Groups Ramp Up Effort To Avert Medicare Part B Premium Hikes
Medicare beneficiary groups and the states are ramping up lobbying and grassroots efforts to convince Congress to avert a projected 52 percent spike in premiums that affects a third of beneficiaries, as lawmakers today blow past their first major deadline for finding a fix. ... AARP will begin reaching out to key members before rolling out a wider grassroots membership campaign, said Andrew Scholnick, the group's senior legislative representative. The group also wrote to every congressional office Wednesday urging a fix. The Medicare Rights Center and allied groups have garnered nearly 100,000 signatures on a petition, and will host further events throughout the fall, according to Federal Policy Director Stacy Sanders. Both the National Association of State Medicaid Directors and the National Governors Association have been engaging lawmakers, since state Medicaid budgets will be on the hook for a combined $2.3 billion, as they pay Medicare premiums for about 9 million dual eligibles. (Mershon, 10/15)
St. Louis Post-Dispatch: Medicare Premium Increases May Hurt State Medicaid Plans
An expected increase in Medicare Part B premiums has state officials across the nation bracing for another budget hit. The 52 percent increase, which would kick in on Jan. 1, will affect less than a third of Part B beneficiaries, but that number includes the elderly and disabled who are also covered by Medicaid and whose premiums are paid by the states. ... state Medicaid programs are facing additional costs of $2.3 billion for calendar year 2016. In Missouri, that means finding an additional $32 million to assist about 187,000 people; in Illinois, an additional $91 million is needed to help 365,000. (Liss, 10/15)
Los Angeles Times: No Cost Of Living Hike For Social Security Recipients Next Year, Government Says
Because Social Security benefits affect Medicare, the decision could end up costing California's Medi-Cal program an additional $550 million next year, which one state official has called an "urgent fiscal issue." (Peltz and Masunaga, 10/15)
The Wall Street Journal: Medicare Recipients Face Higher Drug-Plan Costs, Other Changes
Meanwhile, other changes are coming in 2016 and later years for participants in the federal health insurance program for people ages 65 and older. Here are three areas to be aware of: Higher prescription-drug costs. ... Added Medicare costs for some high earners in 2018. ... Notice to be required of hospital ‘observation’ status. (Tergesen, 10/15)
