MEDICARE RATE INCREASES FOR 2004 WILL FURTHER BURDEN PEOPLE WHO DEPEND ON MEDICARE FOR HEALTH INSURANCE

The recently announced 2004 cost sharing responsibilities for Medicare beneficiaries continue to increase out-of-pocket expenses for people who rely on Medicare. (Click here for rates.)  Two of the expenses which most all Medicare beneficiaries will need to meet will see dramatic increases. The inpatient hospital deductible will increase $36, to $876. Most significantly, the monthly Part B premium will increase almost 15%, from $58.70 per month in 2003 to $66.60 per month in 2004.

This large Part B premium increase should not be a surprise to policy-makers who passed the Balanced Budget Act of 1997. That law switched payment for long-term home care from Medicare Part A to Part B. But the premium increase will be unexpected bad news to Medicare beneficiaries. The 2.1% increase in monthly Social Security payments for 2004 will not come close to paying for the Part B premium increase.

Elder law attorneys and advocates should be certain that their clients have Medigap policies that cover these cost sharing responsibilities. For those who can not afford a Medigap policy, be sure to review eligibility for one of the federal Medicare Savings Programs, QMB, SLMB, or QI. Eligibility for these programs is based on income. They pay the Part B premium; QMB pays all cost sharing for those who qualify.

2004 MEDICARE DEDUCTIBLE, CO-INSURANCE & PREMIUM AMOUNTS