Medicare Premium Rises

Seniors' 'Part B' premiums for doctors' visits and lab tests paid by Medicare are set to go up by $5 per month in 2007. Most beneficiaries will now pay $93.50 per month, a 5.6% rise over 2006 premiums. But the costs could go even higher if doctors' groups succeed in their bid to prevent Medicare fee cuts.

Part B deductibles are also scheduled to go up by $5 to $131. Seniors pay an average of $27 per month in premiums for the Medicare prescription drug benefit, and usually pay the first $992 in hospital costs unless they are low-income.

At the same time, wealthy seniors will for the first time be asked to shoulder higher premium costs. Under Medicare's new premium schedule, seniors with incomes between $80,000 and $100,000 per year and married couples with annual incomes between $160,000 and $200,000 pay additional $12.50 per month over the $93.50 paid by most seniors. Individuals with annual incomes between $100,000 and $150,000 and married couples with annual incomes between $200,000 and $300,000 in 2007 will pay a monthly premium of $124.70. Individuals with annual incomes between $150,000 and $200,000 and married couples with annual incomes between $300,000 and $400,000 in 2007 will pay a monthly premium of $143.40. Individuals with annual incomes of $200,000 or more and married couples with annual incomes of $400,000 or more in 2007 will pay a monthly premium of $162.10.