A new report released by the American Institute for Economic Research has found that baby boomers who are retiring next year and set to enroll in a Medicare plan may be in for an unpleasant surprise – Medicare Plan B will be much costlier in 2011, according to NewJerseyNewsRoom.com.
This section of Medicare, which covers most expenses except for prescriptions, will have a spike in premiums of 25 percent.
The report finds that those who earn $85,000, and couples who earn more than $170,000, will be charged more than families who earn less.
Premiums in 2010 were $110.50 per month and, starting in 2011, the cost will rise to $120.10 for the lesser income group.
The report states that "the higher premiums for the same coverage come at a time when newly eligible seniors are under great financial stress, with Social Security benefits flat and most private retirement plans worth far less than they were just a few years ago," according to the news source.
Many boomers and seniors may want to cut expenses as much as possible. Using a personal emergency response system may be a way to limit the duration of hospital stays and reduce the risk of a serious injury in the home. This device allows users to instantly contact doctors if they are in need of assistance.