Medicare Means Testing
When the Medicare program was created, all beneficiaries paid the same premium, which was equal to 25 percent of Part B’s average beneficiary cost. The remaining 75 percent of the cost was covered by the federal government. However, since 2007, many seniors have been subjected to the means, or asset, test for their Medicare premiums.
TSCL was very disappointed when the Affordable Care Act even froze the income levels subject to the means test for ten years. If the income thresholds do not rise with inflation, more and more seniors will be subjected to the increased costs. TSCL fears that, as costs continue to grow, wealthier seniors affected by the means test may begin to abandon Medicare, driving up the costs for those who cannot afford to purchase private insurance.
TSCL supports eliminating the means test since it could lead to higher costs for all Medicare beneficiaries in the future. We will continue listening to our members and supporters this year to learn how these increased costs are affecting their standards of living.