washingtonscene
numbers of seniors actually will see their premiums drop significantly. Most beneficiaries with incomes under
$85,000 ($170,000 for married couples) will see a 3.6-percent increase in monthly premiums, from $96.40 to $99.90. For some in that category (specifically those who first became eligible for Medi- care in 2010 and 2011), the $99.90 rate will be less than what they paid in 2011. Similarly, beneficiaries with incomes
above $85,000 ($170,000 for married cou- ples) will see their premiums drop by $20 to $50 a month. Why the declines? Because these two
groups (new eligibles and upper-income beneficiaries) were hit with extra premium hikes for the past two years. That happened because the law generally bars any drop in Social Security benefits when there’s no COLA. That means most people had their Part B premiums frozen for the past two years. But new eligibles and upper-income people were exempt from the freeze, so they absorbed not only their share of the 2010 and 2011 hikes but also had to cover the share of all of the “frozen” beneficiaries. Now that the premiums for those 75 percent of beneficiaries who were held
2012 Medicare Part B Monthly Premiums
Some had projected a double-digit increase in Medicare Part B premiums for 2012. But the actual basic increase will be only $3.50 a month, and higher- income beneficiaries’ Part B premiums will actually drop in 2012.
2011 Individual Income
Under $85,000 $85,001-$107,000 $107,001-$160,000 $160,001-$214,000 Above $214,000
Premiums $96.40
$161.50 $230.70 $299.90 $369.10 2012
Premiums $99.90
$139.90 $199.80 $259.70 $319.70
Change +$3.50
-$21.60
Government Subsidy
75% 65% -$30.90 50% -$40.20 -$49.40 35% 20%
harmless are able to rise, Medicare was able to lift the extra premium burden previously imposed on the unprotected 25 percent. The bottom line: almost every Medicare- eligible will be paying lower premiums in 2012 than had been expected, and a signifi- cant number will be paying much less. The chart below shows the 2012 premium rates. One more piece of good news — Medi-
care also reported the annual Part B deduct- ible will drop to $140 for all beneficiaries in 2012 — a $22 drop from the 2011 deductible.
Bogus Case for O
Military Vesting Plan would cripple retention.
ne of the rationales given by top defense officials and others who have called for changes in the
military retirement system is the need to be “fairer to people who leave before com- pleting 20 years of service.” Vesting is common in the private sector
to allow an increasingly transient workforce to build retirement equity, they say, and the military system should be changed to do that for the 83 percent of servicemembers who leave short of serving a career. Bullhockey. There’s no comparison between mili- tary and civilian careers. Unlike corporate America, the services
have to grow their own mid-level supervi- sors and top leaders, and they need power- ful incentives to induce large numbers of high-quality people to complete a career in uniform, despite conditions of service most Americans won’t tolerate for even one term. There are good reasons why 83 percent
of entrants aren’t willing to stay for a mili- tary career, and the last thing the services need is to create another one. Make no mistake,
38 MILITARY OFFICER JANUARY 2012
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