MEDICARE Q & amp;A Premiums going up

KNIGHT RIDDER NEWSPAPERS
Q. I read that my Medicare premium will jump from $78.20 to $88.50 a month starting in January. Is this increase because of the new drug benefit? -- Vivian
A. You are right about the Medicare Part B premium increasing to $88.50 in January, but the increase is not due to the new Medicare Part D prescription drug benefit, which has its own monthly premium.
People who sign up for a Medicare drug plan will pay both the Medicare Part B premium (for physician and other outpatient services) and a new Medicare Part D premium for prescription drug coverage. The average monthly premium for the new Medicare drug benefit is $32.20 in 2006, though premiums will vary from plan to plan. This means that in 2006, people on Medicare will pay $88.50 each month for Part B and an additional $32.20 each month for the Medicare drug benefit, for a total of about $120 per month.
Most people on Medicare have their Part B premium deducted from their Social Security check, and beginning in 2006, you can do the same to pay your Medicare drug plan premiums. Or, if you prefer, you can pay the Part D premium directly to the company providing your Medicare drug benefit. When you enroll for 2006, you can specify how you would like to pay your premium.
The Medicare drug plan premiums vary widely -- with some below $10 and others well above the national average. Keep in mind that a higher premium doesn't necessarily mean better coverage. You'll have to do some research to compare plans and determine which plan is best for you.
Not all people on Medicare will pay a premium for coverage under a Medicare drug plan. The law includes "extra help" for people with modest incomes and savings. If your income is less than $20,000 and you have less than $20,000 in savings, you may qualify for additional subsidies. To learn more, contact your local Social Security office or call 1-800-MEDICARE.
XThis column was prepared by the Kaiser Family Foundation, an independent, nonprofit private foundation based in Menlo Park, Calif., not affiliated with the Kaiser Permanente health plan. Send questions about the new Medicare drug benefit to Medicare Q & amp; A, The Kaiser Family Foundation, 1330 G St., NW, Washington, D.C. 20005 or Medicare@kff.org.