BUDGET HITS MEDICARE BENEFICIARIES’ WALLETS

The Administration’s FY2009 budget would deal heavy blows to Medicare and many older beneficiaries.

Physician reimbursement cuts of almost 10% originally planned for January will go into effect in July unless Congress acts to reverse them, and the budget envisions further cuts in January 2009.

The new budget would repeal annual inflation adjustments to the income levels used to means-test Part B premiums. If enacted, that would push more and more people each year into paying significantly higher Part B premiums. This year, the higher premiums apply to single seniors with incomes over $82,000 ($164,000 for a married couple) as opposed to $80,000/$160,000 last year.

Additionally the budget proposes freezing payment levels through FY2011 for inpatient care, skilled nursing facilities, hospice care, and ambulance services, and a freeze through FY2013 for home health agencies.

Once again, we’ll need your help in convincing Congress to overturn these cuts. Go to MOAA’s Web Site to send your legislators a MOAA-suggested message and urge them to avoid the July 2008 cut in Medicare/TRICARE payments to physicians.

Source: MOAA Legislative Update

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