Washington

The Centers for Medicare and Medicaid Services on Oct. 19 announced increases in Medicare premiums, deductibles and coinsurance amounts for 2002.

According to CMS, the premium for Medicare Part B will increase 8 percent, from $50 a month to $54 a month. Medicare law sets the Part B premium at the amount needed to cover 25 percent of the estimated program costs for beneficiaries, while general revenue tax dollars cover the other 75 percent.

For Medicare Part A, the beneficiary deductible will increase 2.5 percent, from $792 to $812, and the premium for some enrollees will increase from $300 to $319, CMS said. Beneficiaries enrolled in private Medicare+Choice plans may not be affected by the Part A increase.

“For some seniors, Medicare+Choice plans offer a reasonable alternative to fee-for-service Medicare's high out-of-pocket costs, but too many seniors don't have that option,” said Tom Scully, CMS administrator. “We have worked throughout the year to do what we can to stabilize the Medicare+Choice program, and we intend to work with Congress to strengthen and modernize the program for the long term.”

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