WP: Medicare Premiums Will Surge For Some

[DeepModem Mom]

Medicare Premiums Will Surge For Some
Capital Gains Can Sharply Raise Part B Payments
By Marc Kaufman
Washington Post Staff Writer
Thursday, December 28, 2006; Page A15

When new income-based premiums for Medicare's Part B program go into effect next month, some seniors will get an unwelcome surprise: Their monthly costs will be going up considerably more than expected because of the government's method of counting their income.

In addition to income from investments, pensions and wages, seniors will find that big but unusual windfalls -- from house sales, for instance, or from taking cash from an individual retirement account -- will also be included in government calculations.

As a result, an advocacy group for seniors says, tens of thousands of people will be counted as wealthy even though their continuing yearly income is modest. Some will be paying as much as $800 more a year for Part B coverage because they are deemed to be "higher income beneficiaries." This will be on top of the $93.50 a month standard premium that all recipients will pay.

"We are concerned that our members are just now finding out that the government is suddenly increasing seniors' Part B premiums without adequate warning," Shannon Benton, executive director of the Senior Citizens League, said in a statement.

"Making matters worse, some seniors will have a difficult time with the appeal process, perhaps having to drive hours to appear in person -- an option many seniors simply don't have available to them," she said....

http://www.washingtonpost.com/wp-dyn/content/article/2006/12/27/AR2006122701585.html

[Mrs. Overall]

1. Why do so many headlines have the word "Surge"?

[Tempest]

2. To desensitize everyone to the meaning

So when Bush increases the troop level in Iraq, it won't have the same impact.

[Mrs. Overall]

3. Yes, it's been interesting to watch the Administration's use

of certain words. "Surge" has been interesting because it has positive/negative connotations. The economy can "surge" but consumer costs "surge" and a tsunami causes a "surge."

Does Bush's use of "surge" regarding Iraq have a hidden meaning only his base would fully understand?

[gratuitous]

6. The premium increase is a "surge"?

Just temporary, like the troop "surge," right? Or is this a different kind of surge, one of the bad ones that doesn't recede? Which of course the proposed troop "surge" definitely isn't. Not at all. Nosireebob. If the Bush administration surges the troops, they'll for sure be back home in no time. Hardly even know most of them were gone. It'll be like they went down to the corner store for a carton of milk. Back in a jiffy.

Right? Nothing sinister or underhanded about a "surge" of troops. Nope. Not a thing.

[underpants]

4. My folks got hit by this all ready

they finally sold off some land they have been holding on to and they have seen a big jump in their premiums.

[harpboy_ak]

5. It's a boon for the investment industry

This will encourage investment in annuities, which spread the investment income over a long period. A boon for the insurance industry. Insurance companies sell most annuities, which are basically a bet that you'll outlive what actuaries predict is your expected lifetime.

At least with stocks and bonds, there might be some principal left if you die "early". Not with annuities. If you die "early" they keep it all.

Not surprising that the Repuke Congress come up with tax laws that punish seniors for investing for retirement.

[sandnsea]

7. Couples - $160,000 income

Good god. Seniors do not have that kind of income, they either just don't have it, or aren't stupid enough to set themselves up for that kind of income tax. This is just another one of those attacks to convince average people that there's a govt tax or fee problem, when the 'problem' will never affect them and targets the exact people they wanted targeted all along. $160,000 is in the top 5% when people are WORKING, let alone when they're retired. God this makes me so angry. Why do so many people just not THINK.

[KamaAina]

8. This isn't a surge, it's an escalation!

Astonishingly, this makes even less sense than a certain other "surge" now being floated inside the Beltway.

Question: Will the premiums go back down the following year, when the couple has no capital gains (assuming they survive that long)??