Sharp rise set for Medicare premiums

WASHINGTON – The elderly will face another double-digit rise in their Medicare premiums next year, resulting in monthly payments of nearly $100.

The monthly premiums for supplementary medical insurance will rise from $88.50 to at least $98.40, the Bush administration projected Tuesday. That’s an 11.2 percent increase.

It’s possible the amount will be slightly higher. The projections assume that Congress will reduce Medicare payment rates for physicians by about 4.7 percent next year, but many analysts don’t believe such a cut will occur.