Public Employee Press

Medicare B cost up 17%, city to pay

Social Security checks will rise by 2.7 percent this year for about 47 million Americans. But for typical Social Security recipients, a 17.4 percent increase in Medicare Part B premiums will eat up nearly half the increase.

Because a campaign led by the DC 37 Retirees Association won legislation in 2001 requiring the city to pay the entire Part B premium, most DC 37 retirees will not suffer this loss.

According to Social Security officials, the average monthly check for retired workers will rise this month from $930 to $955, an increase of $25.

The Bush administration announced in September that the Medicare B premium for 2005 would go up by $11.60 a month, from $66.60 to $78.20. Thus most retired Americans will lose 46 percent of their Social Security increase.

City retirees will pay the Medicare hike in 2005, and most will be fully reimbursed by the city in 2006. Retired MTA employees will receive only $384 toward their Part B premium. The Retirees Association is working to get them the full amount, said President Stuart Leibowitz.