Last week, the House of Representatives passed the Medicare Premium Fairness

Act. ( H.R. 3631). The bill would protect all Medicare beneficiaries --

including federal civil service annuitants who are not eligible to receive

Social Security -- from an increase in their Part B premium in 2010 when they

are unlikely to receive any cost-of-living adjustment (COLA).

"This bill is about equity for all Medicare beneficiaries, because without

it, federal, state and local government retirees who are not Social

Security-eligible would have to pay the Part B rate hike in a no-COLA year,

while Social Security beneficiaries would not," said Margaret L. Baptiste,

president of the National Active and Retired Federal Employees Association

(NARFE).

Current projections indicate no COLA will be paid to Social Security

beneficiaries and federal civilian and military retirees in 2010, and the

Congressional Budget Office (CBO) has predicted the possibility of no COLA for

2011 and 2012. Under present federal law, about 75 percent of Medicare

beneficiaries are not required to pay -- or are "held harmless" -- for the

increase in Part B premiums in any year when they receive no Social Security

COLA.

However, according to NARFE, there are four groups of older Americans who are

not protected by the "hold harmless" provision, including over a million

federal, state and local government retirees who are not eligible to receive

Social Security benefits.  

Absent a change in law, they would not only have to pay the higher Part B

premiums without a COLA, but also absorb the costs of other Medicare

beneficiaries currently 'held harmless.' NARFE stated.

The House-approved bill would shield all older Americans from the Part B

premium increase in 2010, including government retirees who are not eligible for

Social Security.  That means no one would pay the Part B increase next

year.  The legislation is fully financed through the Medicare Improvement

Fund.

"NARFE has worked tirelessly behind the scenes on this legislation for the

past three months," added Baptiste, "and we are gratified to win equity for all

federal annuitants."