If you use Medicare and you are classified as part of a group of wealthy seniors, your costs may be going up soon. These proposed rate hikes are part of a GOP proposal to help offset an extension of Social Security payroll tax cuts.
How Did We Get Here
With the economy struggling to get back on track, Barack Obama has proposed measures to extend the cuts in the payroll tax and to extend unemployment benefits. With so many people out of work, and neither party wanting to seem as though they are out of touch with the American worker, a compromise on how to pay for these extended benefits has been working its way through Congress.
Debate Surrounding The Bill
The GOP has made it a priority to not raise any taxes if at all possible. Reducing the payroll tax, and then bringing it back to its previous levels, could be seen as a tax hike. However, the GOP does realize that they need to somehow bring in new revenue to offset the cost of letting this tax remain at a lower level. The GOP has decided to increase costs for seniors, but are trying to pass it off as a tax on wealthier seniors. Democrats, on the other hand, have decided that they are going to try and pass a surtax on those making more than 1 million dollars.
Who Is Impacted
While details of the bill are still coming out, various reports have indicated that those making over 750,000 dollars will be required to pay more for Medicare Part B. If the bill passes, premiums for 2012 monthly coverage will be $99.90 for those who are making less than 85,000 dollars a year. The scale slides upward gradually to $319.60 for those who are making more than 214,000 dollars. It is still unclear how much extra those who are making more than 750,000 will have to pitch in.
If this bill passes, it will represent increased costs for those making over 85,000 dollars. While no one wants to see any of their bills go up, if someone can afford to pay more, they will have to under this new legislation.

