Medicare premiums set to rise 15 percent

WASHINGTON, Oct. 19 (UPI) -- The basic premium for U.S. Medicare recipients is set to rise 15 percent but Congress is considering legislation to block the increase, officials said.

An estimated 27 percent of Medicare beneficiaries, about 12 million people, would pay the higher premiums in 2010, The New York Times reported Monday. Other recipients will not pay higher premiums because federal law prevents their payments from exceeding increases in their Social Security benefits, the newspaper said.

The Social Security Administration announced last week benefits will not increase in 2010 because they are pegged to inflation, which was extremely low in 2009.

The U.S. House has approved legislation to avert the scheduled increase and Health and Human Services Secretary Kathleen Sebelius has urged the Senate to follow suit.

"We are in tremendously difficult economic times, and seniors are being hit particularly hard," she said.

If the increase takes effect, the premium would be $110.50 a month, federal officials said. The higher premiums would most likely hit new Medicare beneficiaries, high-income Americans and people whose Medicare premiums are paid by Medicaid.