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Protection From Medicare Price Hike?

September 28, 2009 - 4:00am


Federal, military and Social Security retirees will not be getting a cost of living adjustment in 2010. This is the first time since the COLA program started that retirees won't get a little something to help them keep pace with inflation.

But so far in the measuring period (third quarter of this year over the third quarter of last year) actual living costs, as measured by the Bureau of Labor Statistics, are down 2.2 percent. In mid-April we alerted readers that 2010 was likely to be the year without a COLA.

The good news was and is that retiree benefits would not be cut because we are in a period of deflation and living costs are down. The bad news, however, is that many of them were facing the prospect of getting lower benefits because of automatic increases in Medicare B premiums. Those premiums were slated to go from approximately $96.40 per month in 2009 to anywhere from $104 to $110 per month.

The good news for hard-pressed retirees: Action is being taken to protect them from the premium increase.

In a bipartisan vote, the House has agreed to exempt older Americans (including retired feds) from any increase next year in Medicare Part B premiums. Normally the premiums go up each year. But since federal-military-social security retirees aren't getting an increase in benefits (because living costs have dropped dramatically) they would have been hit with a benefit-reduction because of the higher Medicare premiums. But that won't happen, if the Senate (as expected) approves the House plan.

Most Medicare participants would have been exempt from any increase in Part B premiums as part of a "hold harmless" provision that protects them when they don't get a cost of living adjustment. But millions of retired feds and local government workers (who are not eligible to receive Social Security benefits) would have been hit with an increase in Part B premiums.

Margaret Baptiste, president of the National Active and Retired Federal Employees praised the House action to exempt everyone. NARFE is urging the Senate go along with the House bill, H.R. 3631.

Given the numbers and clout of senior citizens, you can bet the Senate will get the message!

What's In A Title?

Last week we listed what may be one of the longest job titles in government: Associate Administrator for Administration for Research and Innovation Technology Administration. After reading that, frequent contributor Stan The Man, sent us the following:

"My brother once had a long, vague title on his card. I met someone who also worked there and I asked him what my brother actually did for 40 hours a week. He thought for a long time and said, 'Now that you mention it, no one really knows, but he has us all convinced that he does it better than anyone else.' That is the best description I ever heard of my brother."

I once worked for a newspaper that kept adding AME's (Assistant Managing Editors) for various departments and functions. Eventually we had so many AMEs that I had a sign made up (at my own expense) which gave me the title: AME/AMEs. Nobody every challenged it!

Got a good one? Got a title, (federal, state, local government or private sector) that you'd like to share with us? If so send them to me: mcausey@federalnewsradio.com

Nearly Useless Factoid
by Phil Vogel

Nepal's anti-corruption authority has come up with a novel solution to rampant bribe-taking at the country's only international airport -- the pocketless trouser.

The authority said it was issuing the new, bribe-proof garment to all airport officials after uncovering widespread corruption at Kathmandu's Tribhuvan International Airport.

To reach me: mcausey@federalnewsradio.com

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