Medicare premiums for 2012 will rise for some, fall for others

By Deborah Kotz, Globe Staff

Medicare premiums won’t rise next year as much as predicted, the US Department of Health and Human Services announced today. The standard premium for Part B -- which covers doctor visits and outpatient services -- will be $99.90 per month; that amounts to a monthly increase of $3.50 for most people on Medicare instead of $10.20, which had been predicted.

The rise in Medicare premiums is tied to increased payments for cost of living adjustments for Social Security recipients. Combining the two will put about $40 more a month in the typical retiree’s pocket in 2012, HHS Secretary Kathleen Sebelius said in a press briefing.

The Medicare Part B yearly deductible will be $140, a decrease of $22 from 2011. On the other hand, the Medicare Part A deductible -- used for inpatient hospitalizations and nursing home facilities -- will rise by $24, to $1,132. The monthly Part A premium will also increase by $1 per month.

Sebelius called the lower-than-expected premium increase “the latest round of good news” and added that the projected increases in Medicare costs were lower than expected partly because of greater competition among health plan providers put in place by the Affordable Care Act.

About one-quarter of Medicare beneficiaries -- those at the higher end of the income scale -- will actually see a decline in their 2012 monthly premiums because of greater spreading of premium costs to the rest of the Medicare population.

Medicare spokesman Brian Cook told me those paying upwards of $160 for their monthly Part B premium will see a decline of about $20 to $50 per month. For example, those who paid monthly premiums of $161.50 last year will be charged $139.90 this year; those who paid $369.10 last year will be charged $319.70.

The average premium for Medicare Advantage plans -- which operate like managed care networks -- will decline by 4 percent for 2012.

Medicare beneficiaries have until Dec. 7 to sign up for new plans during open enrollment. A new Medicare Plan finder can help consumers compare the cost differences and coverage quality of various plans.

Deborah Kotz can be reached at dkotz@globe.com. Follow her on Twitter @debkotz2.