Medicare Part B monthly premium rises more than $10

Medicare Part B Premium Increase: Factors Behind the $10.30 Hike for 2006

Rapid growth in the intensity and utilization of Part B services in hospital outpatient services is a primary reason for a $10.30 increase in the monthly premium for Medicare Part B services, according to the Centers for Medicare & Medicaid Services (CMS).

In addition to the growth in hospital outpatient services, the growth of Part B services in physician office visits, lab tests, minor procedures, and physician-administered drugs also prompted the premium increase.

The premium in 2006 will be $88.50, up from $78.20 in 2005. Despite the increase, most beneficiaries will see lower out-of-pocket expenses because of new savings on Medicare prescription drugs.

To view CMS’s analysis of the Part B premium rate increase, click here.