Reprieve on Medicare B
Most people will avoid premium hikes, but some could pay more.
Health costs continue to rise, but the majority of Medicare beneficiaries won't see an increase in their Part B premiums in 2010. Nearly 75% will continue to pay $96.40 per month for Medicare-covered doctor visits and outpatient services, thanks to a "hold harmless" provision that prevents Social Security checks from declining from one year to the next. Most people have their Part B premiums deducted from their Social Security checks. Because there will be no cost-of-living increase in benefits in 2010, their Medicare Part B premiums can't rise, either.
However, the hold-harmless provision does not apply to about one-fourth of Medicare beneficiaries: people who are new to Medicare in 2010, low-income beneficiaries whose premiums are paid by Medicaid and high-income beneficiaries who pay a surcharge. For most of them, premiums could increase substantially, jumping by $14.10, to $110.50 a month, in 2010, according to the Centers for Medicare & Medicaid Services. The hike is so large because those not protected by the hold-harmless provision must bear the entire burden of the increased cost.
But high-income beneficiaries will pay even more than that. That's been the case since 2007, when income surcharges were added to Part B premiums for people above a certain income level (see the table).
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Congress is considering legislation that would freeze Medicare Part B premiums at 2009 levels for everyone in 2010 -- even those who aren't protected by the hold-harmless provision. High-income beneficiaries would still have to pay a surcharge, but their total costs would remain at 2009 levels (ranging from $134.90 to $308.30 per month, depending on income).
Although the House has approved the legislation, the Senate has yet to act and may miss the deadline for programming computers in time to allow any last-minute changes to January benefit checks.
-
Stocks Chop as the Unemployment Rate Jumps: Stock Market TodayNovember job growth was stronger than expected, but sharp losses in October and a rising unemployment rate are worrying market participants.
-
Should You Renew Your CD?With rate cuts impacting earnings, we examine if now is a wise time to renew CDs.
-
7 Ways to Plan Now to Save on Medicare IRMAA Surcharges LaterUnderstand the critical two-year lookback period and why aggressive planning before you enroll in Medicare is the most effective way to minimize IRMAA.
-
Amazon Resale: Where Amazon Prime Returns Become Your Online BargainsFeature Amazon Resale products may have some imperfections, but that often leads to wildly discounted prices.
-
457 Plan Contribution Limits for 2026Retirement plans There are higher 457 plan contribution limits in 2026. That's good news for state and local government employees.
-
Medicare Basics: 12 Things You Need to KnowMedicare There's Medicare Part A, Part B, Part D, Medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare — and much more.
-
The Seven Worst Assets to Leave Your Kids or Grandkidsinheritance Leaving these assets to your loved ones may be more trouble than it’s worth. Here's how to avoid adding to their grief after you're gone.
-
SEP IRA Contribution Limits for 2026SEP IRA A good option for small business owners, SEP IRAs allow individual annual contributions of as much as $70,000 in 2025, and up to $72,000 in 2026.
-
Roth IRA Contribution Limits for 2026Roth IRAs Roth IRAs allow you to save for retirement with after-tax dollars while you're working, and then withdraw those contributions and earnings tax-free when you retire. Here's a look at 2026 limits and income-based phaseouts.
-
SIMPLE IRA Contribution Limits for 2026simple IRA For 2026, the SIMPLE IRA contribution limit rises to $17,000, with a $4,000 catch-up for those 50 and over, totaling $21,000.
-
457 Contribution Limits for 2024retirement plans State and local government workers can contribute more to their 457 plans in 2024 than in 2023.
