September 19, 2008

WASHINGTON (AP) -- Medicare beneficiaries will get a break from the usual rise in premiums next year.

It's the first time since 2000 that the charge for health coverage is not increasing. It's currently $96.40.

The premiums have usually gone up to cover higher costs and the higher demand for care projected for the coming year. While both are expected to increase in 2009, the cost will be offset by reserves in the Medicare Part B trust fund account.

Earlier this year, officials discovered that money was inadvertently drawn from the account to cover certain hospice benefits. The result was a 9.3 billion-dollar gain that allow premiums to remain flat.

Health care costs have been rising much faster than inflation over the years, and officials say it's likely that Medicare will go back to raising premiums in coming years.

Copyright 2008 by The Associated Press. All Rights Reserved.