Ever since Mitt Romney picked Representative Paul Ryan of Wisconsin as his running mate, there has been a lot of discussion, misinformation, and confusion about Medicare and its outlook for current and future beneficiaries. Although I said in a past post that I have absolutely no intention of joining the Ryan-Romney-Medicare bandwagon, I just changed my mind — because now it has gotten personal.
Last night while having dinner with Mom, we got into a discussion about her Medicare supplement plan. “I have to ask you a question,” she said. “Is it really true that my Medicare premiums are going to go up about $200 in two years? That’s what one of my Republican friends told me. She said it’s all Obama’s fault, too.”
Okay, that does it, I thought to myself. I can’t keep quiet on these ridiculous, outrageous lies any more.
“No, Mom. Your Medicare Part B premiums are not going to go up because of President Obama or the Affordable Care Act. This is a complete lie based on a bogus email that went viral before the 2010 elections in an attempt to scare people like you.”
I then explained to her that, contrary to what has now become popular belief (thanks to this email), the Affordable Care Act does not change the calculation of the Part B premium at all. The Balanced Budget Act of 1997 permanently set standard Part B premiums to cover 25% of projected program costs for beneficiaries. This rule is not changing.
Under this standard calculation, if projected Part B costs increase or decrease, the premium rises or falls. Monthly Medicare Part B premiums may increase, may stay the same, or may even decrease, depending on formulas established before the Affordable Care Act was signed into law.
AARP Bulletin Senior Editor Patricia Barry (Ms. Medicare) does a good job covering all the details about this myth and Part B premiums, so check it out here if you want all the facts.
