Good news on Medicare premiums

Medicare beneficiaries in 2012 will pay less than expected for their Part B premiums, which cover doctor bills and other outpatient treatments. The standard premium will be $99.90 a month, $6.70 less than Medicare had forecast earlier this year.

For most beneficiaries, that represents an increase of $3.50 a month over their 2011 premiums. But others will see a substantial decrease from the 2011 standard premium of $115.40.

Premiums have been lower than the standard for about three-quarters of people on Part B for the past two years because of a law that freezes premiums for people already on Medicare and receiving Social Security in years when Social Security doesn't have a cost-of-living increase. That was the case in 2010 and 2011, but in 2012 Social Security payments will include a cost-of-living increase averaging about $43 a month, more than enough to offset the additional Part B premium.

What's more, the Part B deductible is also going down, from $162 in 2011 to $140 in 2012.

Meanwhile, beneficiaries are getting some new services, thanks to the Affordable Care Act, such as a free annual wellness visit and an array of other free preventive services such as cancer and cardiovascular screenings.

Unfortunately, people with employer group health plans aren't faring as well. As we previously reported, they're actually paying more for less this year.

For details, see our tips on managing Medicare and our advice for people who get insurance through their employer. For help choosing an insurance plan, see our rankings of health-insurance plans by state.

Source
As Premiums Are Announced, Seniors Are Getting More Value Out of All Parts of the Medicare Program [HealthCare.gov]

—Nancy Metcalf