Medicare premiums could rise for many retirees

It's a health care change that President Barack Obama and Republicans both embrace: Expand a current, little-known law so more retirees the government considers well-off are required to pay higher Medicare premiums.


That plan is likely to be part of any budget deal to reduce the overhang of federal debt, raising $20 billion or more over 10 years. It could come as a shock to many seniors who will have to pay the higher premiums even though they consider themselves solidly middle-class, and by no means wealthy.

That’s what happened to Tom James. He and his wife recently got an official notice that they will have to start paying more for Medicare next year, about $1,000 for the two of them. James is among the 5 percent of beneficiaries currently facing higher “income-related” premiums. If the budget change goes through, that number will grow to 25 percent.

“I was blindsided,” said James, a retired bank examiner who lives near Philadelphia. “The camel has got his nose in the tent now, and the question is how far do they want to go with that?”

The idea is to continue broadening the reach of income-based Medicare premiums introduced under former President George W. Bush and later expanded by Obama’s health care law.

CONTINUED:  http://www.washingtontimes.com/news/2012/dec/20/medicare-premiums-could-rise-many-retirees/#ixzz2FcOYh6x1