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Medicare premiums up but not as much as expected

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WASHINGTON (AP) — Good news for seniors: The government says Medicare's basic monthly premium will rise less than expected next year, by $3.50 for most.

It could be good, too, for President Barack Obama and Democrats struggling for older Americans' votes in a close election.

At $99.90 per month, the 2012 Part B premium for outpatient care will be about $7 less than projected as recently as May. The additional money that most seniors will pay works out to about 10 percent of the average Social Security cost-of-living increase they'll also be due.

Some recently enrolled younger retirees will actually pay less. They were charged $115.40 a month this year, and they'll see that go down to $99.90.

The main reason for lower-than-expected premiums seems to be the connection between Social Security COLAs and Medicare. Some also cite a moderation in health care costs.

But the Obama administration is hoping seniors will get a simpler takeaway message: Medicare is under sound management.

Older voters went for Republicans in the 2010 elections, after Obama's health care overhaul law cut Medicare spending to help finance coverage for the uninsured. Since then, the administration has worked hard to reverse any perception that Obama is steering Medicare into decline.


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