Washington

In 2003, the monthly premium that American seniors pay to receive goods and services under Medicare Part B will rise 8.7 percent, to $58.70, the U.S. Health and Human Services Department announced Oct. 18.

Repudiating responsibility for the rate hike, HHS Secretary Tommy Thompson explained that Medicare law requires HHS to follow a strict rate formula. “The law sets the Part B premium at the amount needed to cover 25 percent of the estimated program costs for aged enrollees,” he said. “General revenue tax dollars cover the other 75 percent of the costs.”

While these increases are unavoidable, they highlight the need to provide seniors with better insurance options, Thompson continued. “Medicare beneficiaries often must face higher out-of-pocket expenses than Americans enrolled in private health plans,” he said. “President Bush's plan would give Medicare beneficiaries better options to obtain prescription drugs and affordable health care.”

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