Bill Freezes Part B Premiums For Next Year

Washington, D.C.--The House Thursday overwhelmingly passed legislation to freeze Medicare Part B premiums for 2010 to protect Medicare enrollees and ensure that no seniors will see a reduction in their Social Security checks.

Congressman Eliot Engel, an original co-sponsor of the Medicare Payment Fairness Act (HR 3631), hailed the passage of the bill. “This will protect seniors who are getting no increase in their Social Security checks for next year from the rising costs of living, especially the rising cost of health care,” said Rep. Engel. It passed by a vote of 406-18.

There is no increase coming in Social Security checks next year because the rate of inflation for this year saw an actual decrease. This decrease was the first in the history of Social Security. However, because Part B premiums, which cover physician and outpatient care, would go up from $96.40 to between $110 and $120 a month. This amount is deducted from Social Security checks. Without action, 11 million seniors, including four million new enrollees in Social Security, would face a cut in their benefits. Also affected would be state budgets which cover premiums for seven million low-income seniors.

Rep. Engel said, “There is no reason this burden should fall on seniors and people with disabilities, especially during difficult economic times.”

He added, “The lack of a cost-of-living increase for 2010 in Social Security would mean millions of seniors receiving Medicare could see their health care costs. This legislation will keep health care more affordable for those in Medicare.”

This bill will not add to the deficit, he said. “The Congressional Budget Office says the bill meets pay-as-you-go requirements by using financing from the Medicare Improvement Fund - established a few years ago to be available to make improvement to Part A and B benefits.”

The bill is endorsed by AARP, the National Committee to Preserve Social Security and Medicare, the Center for Medicare Advocacy, Alliance for Retired Americans, National Association of State Medicaid Directors, the Consortium for Citizens with Disabilities, and the National Active and Retired Federal Employees Association. The bill now goes to the Senate.