Medicare Compliance & Reimbursement

Monthly premium to increase next year, but out-of-pocket costs will drop.

The abundance, and frequency, of Medicare patients utilizing Part B services could be a major reason for a premium jump for 2006, according to a new fact sheet.

Growth in physician office visits, lab tests, minor procedures and physician-administered drugs are also responsible for the $10.30 increase in Part B premiums, the Centers for Medicare and Medicaid Services maintains in a Sept. 16 fact sheet. CMS actuaries had projected the monthly premium increase from $78.20 to $88.50 next year, the agency says. CMS: Part D Will Offset Costs Medicare Part D should alleviate beneficiaries' struggles with the higher Part B premiums in 2006, because the new prescription drug benefit should reduce their out-of-pocket costs.

"Also, about one-fourth of beneficiaries can receive assistance that pays for their entire Part B premium, and about one-third of beneficiaries can receive assistance for their Part D premium," CMS notes.

Note: In 2006, the Part A premium will be $393, with a $952 deductible, and Part B beneficiaries will have a $124 deductible.

Find it online: To read the fact sheet, go to http://www.cms.hhs.gov/media/press/release.asp?Counter=1557.