H. R. 3631: FAIRNESS LEGISLATION

H. R. 3631

On September 24, the House passed legislation, H.R. 3631, to protect all Medicare beneficiaries from an increase in their Part B premium in 2010. In 2010, it is almost certain there will be NO cost of living adjustment (COLA) for Social Security beneficiaries and federal civilian and military retirees. NARFE worked tirelessly behind the scenes on this legislation for the past three months.

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.

Under current federal law, 72 percent of Medicare beneficiaries do not have to pay for the increase in Part B premiums in any year in which they receive no Social Security COLA. However, 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.’

Congressman Mica voted for this Bill. We thank our NARFE legislative officers and Congressman Mica for their efforts in passing H.R.3631.