Due to unchecked costs, Medicare premiums are projected to increase 12.2% next year, the highest increase since 1999, CMS reports.
The Medicare Trustees Report states that premiums could rise to $65.90 in 2004. The final premium amount will be announced in October, CMS says.
The announcement follows news that CMS plans to cut Medicare reimbursements for physicians by 4.2% next year.
CMS itemized the increases in Medicare costs in 2002, showing that physicians' services, which involved cuts in reimbursement that year, rose at a lower rate than other key categories.
- Hospice up 24%, to $4.6 billion.
- Durable medical equipment up 20%, to $6.5 billion.
- Home health care up 14%, to $10.5 billion.
- Inpatient hospital care up 10%, to $104.9 billion.
- Outpatient hospital services up 10%, to $15.4 billion.
- Skilled nursing homes up 9%, to $14.6 billion.
- Physicians services' up 7% to $45 billion.