Medicare premiums to rise significantly for 1.6 million in US

In a change from previous years, Medicare Part B enrollees will now have the financial proceeds from house sales and cash from individual retirement accounts (IRA), among other additional factors, included in government calculations of their income. Since the Medicare premium costs are calculated by income, this technicality will push huge numbers of people into higher income brackets.

For instance, someone who made $50,000 in wages in 2005 would expect to pay $94.90 a month—the standard 2007 Medicare premium for individuals with incomes less than $80,000. However, if that person also sold a house that year for $150,000, he could be pushed into the bracket for those who made $200,000 or more in income, and could see his premium rise to $161.40 a month.

This change will be phased in over the next three years. In 2007, the affected enrollees will pay one third of the cost above what their premiums would have been before the change, in 2008 they will pay two thirds, and in 2009 the change will be fully in effect.

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http://wsws.org/articles/2007/jan2007/medi-j03.shtml