Medicare costs set to rise in 2013

(MoneyWatch) The federal Centers for Medicare & Medicaid Services recently announced modest increases in 2013 premiums and deductibles for Medicare, as follows:

- The monthly Medicare Part B premium for most retirees will increase by 5 percent, from $99.90 in 2012 to $104.90 in 2013. This premium is required if you want to receive Part B coverage, which pays for physicians and other outpatient services. Retirees with high incomes (adjusted gross incomes of $85,000 for single taxpayers, $170,000 for married filing jointly) pay higher premiums. The good news is that the 2013 Medicare Part B premium is lower than the projected rate of $109 per month for 2013 and even lower than the 2011 premium for new retirees, which dropped from $115.40 in 2011 to $99.90 in 2012. (Note: The $5 increase in the Medicare Part B premium eats up a small portion of the modest 2013 Social Security cost of living adjustment of 1.7 percent, which will average out to about $21 per month.)

- The Medicare Part B annual deductible will increase by 5 percent, from $140 in 2012 to $147 in 2013.

- Deductibles for Part A hospital insurance will increase by 2.4 percent. For each 60-day stay in the hospital, the deductible will increase from $1,156 currently to $1,184 in 2013. For each day someone stays in the hospital after 60 days, the deductible will increase from $289 to $296 in 2013.

- No premium is charged for Medicare Part A coverage for hospital and in-patient services for workers and their families who paid into Medicare for at least 10 years. If you didn't pay into Medicare for 10 years, you can purchase Medicare Part A coverage for a monthly premium; this premium will actually decrease from its current rate of $451 per month to $441 per month in 2013.

The cost of premiums for Medicare Part C (Medicare Advantage plans) and Part D (prescription drugs) is set based on charges applied by the insurance companies that sponsor these plans and on the plans' specific features. 

• Coping with rising retiree medical costs
• More people save for retiree health care costs
• Small COLA hike for Social Security recipients

The changes in Medicare's premiums and deductibles result from anticipated changes in the costs of the different in-patient and out-patient coverages. The modest increases in deductibles and copayments indicate that cost-control measures adopted by Medicare in recent years are working.

Look for even more changes that will help rein in costs, since Medicare is on the table during the "fiscal cliff" budget talks.

[judymar14]

WOW, the government gave us a break in 2013, dropping from the projected $109 to $105. That $1.7 will really make a difference, NOT! I do have to credit my drug program, Well Care for dropping rates. Mine will drop from $44 to $34. There is also a program called Classic, $16 a month for ordering by mail. I'm no good with numbers but might have a $1-2 raise or 'only' drop $1-2 with that 1.7 cost of living raise. It will help when I go to the grocery store to by a product which I paid $2.18 six months ago and is now $2.78.

[gpx21dlr]

I am 70 and live only on s/s. I do not have any insurance, and can't afford the $100+/- for Medicare.

[dixt1]

Obamacare won't help a lot, either. When I recently talked to a woman at the healthcare.gov line, I was told that only those making $500.00 or less, per month, will receive much "subsidy" (the subsidy, she said, was actually just a "deduction"---NOT a check in the mail). We OWE our senior citizens much more than we give them! Most senior citizens who need help with FOOD, only get approx. $50-60.00 per month in Food Stamps! But a "young" family can get up to $600.00 per month in Food Stamps. Something's WRONG with this picture!

[dman6015]

How do retirees, who only have SS as income, survive. Oh, here's a token 1.7% "raise", but we're going to take almost all of it away for Medicare premium increases.

[brokenamerica]

We made sure our homes were paid off ( We never bought a Mansion), We have decent Vehicle, And NO CREDIT CARDS.. Thats the secret of living on SS.
In my 70 yrs of life, I have never had a credit card . Deficit and Credit cards are one and only the SAME .
All you credit card holders think the 416 t debt is terrible. But the average Credit card debt is $75k