It was expected that Medicare would see an increase in the cost of the basic monthly premium in 2012. This is still going to happen, but, it won’t be as large an increase as expected. In general, it is pretty rare to see a rate increase that isn’t as high as anticipated. This is good news for people who use Medicare.
One way to potentially influence the votes cast by seniors in the next election is to give them a break on the cost of their Medicare premiums. People tend to vote for the candidate, or political party, that they think will help them out the most. Reducing the expected cost of Medicare is a good way to shine a favorable light on the Democratic candidates in this upcoming election.
In August of 2011, it was announced that Medicare Part D would be slightly less expensive than expected. On average, Medicare Part D will cost seniors about $30.00 per month in 2012. This is slightly lower than the rate people are currently paying for Medicare Part D. On average, the current cost is around $30.76 per month. It isn’t a huge decrease, but, every little bit helps seniors who are on a fixed income.
Medicare Part D is optional. It is something people can purchase from private insurance companies, but is government approved. This is the part that covers prescription drugs. There are efforts in place to reduce the infamous “doughnut hole” that causes a gap in coverage. In 2011, a law regarding the “doughnut hole” gave 50% discounts on the prescriptions of seniors who fell into this gap.
Now, it appears that Medicare Part B will be less expensive in 2012 than it was expected to be. The premiums for Medicare Part B next year will be $99.90 per month. This is about $7 lower than what the cost was originally projected to be.
It has been mentioned that the Affordable Care Act is what is helping to keep Medicare a strong health insurance program, and also what is helping to keep it affordable for seniors. Obviously, the Affordable Care Act is something started by the administration of President Obama, who is a Democrat. People using Medicare could be experiencing the slightly lowered premium rates for Part B and Part D before the next Presidential election.
No matter how seniors choose to vote, they will still receive the lowered premium rate. Most senior citizens are on a fixed income, and getting by on their Social Security benefits. Lowering the cost of even some parts of Medicare can make their lives a little bit easier.
Image Florian Boyd on Flickr