Can't raise taxes? Hike Medicare premiums instead

WASHINGTON (AP) — Raising taxes on millionaires may be a nonstarter for Republicans, but they seem to have no problem raising Medicare premiums for retirees making a lot less.

The House is expected to vote today on a year-end economic package that includes a provision raising premiums for "high-income" Medicare beneficiaries, now defined as those making $85,000 and above for individuals, or $170,000 for families.

Some would pay as much as several hundred dollars a month additional for Medicare outpatient and prescription coverage. Millions who don't consider themselves wealthy would also end up paying more.

Just the top 5 percent of Medicare recipients currently pay higher premiums, a change that took effect a few years ago. The new GOP proposal would expand that over time to include the highest-earning one-fourth of seniors.

On Monday, the White House was mum on the Republican Medicare proposal, while AARP said it's tantamount to a new tax. In the Democratic-led Senate, there's not much enthusiasm.

The plan is modeled on a proposal that President Barack Obama submitted earlier this year to congressional debt negotiators, when he was seeking a "big deal" to cut federal deficits. Continuing pressure to curb spending means the proposal eventually could become the law of the land, even if there's no consensus now.