Summary
On October 22, 2009, the Department of Health and Human Services (HHS) published in the Federal Register the Medicare Part B premium rate for calendar year 2010. The standard monthly Part B premium will increase by 15%, from $96.40 to $110.50. This rate increase is unusually high because most Medicare beneficiaries are exempt from the rate adjustment due to a hold-harmless provision related to the cost-of-living adjustment (COLA) for social security payments. However, those individuals who qualify for both Medicare and Medicaid (the dual eligibles) are not exempt from the rate increase because Medicaid pays their Part B premiums. As a result, states could see an estimated $370 million increase in their Medicaid costs in 2010.