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Summary:
Medicare beneficiaries have out-of-pocket cost-sharing requirements that differ according to the
services they receive. Physician and outpatient services provided under Part B are financed
through a combination of beneficiary premiums, deductibles, and federal general revenues. In
general, Part B beneficiary premiums equal 25% of estimated program costs for the aged, with
federal general revenues accounting for the remaining 75%.The disabled pay the same premium
as the aged. Beginning in 2007, higher-income enrollees paid a higher percentage of Part B costs.
The Centers for Medicare and Medicaid Services (CMS, the agency that administers Medicare)
estimated that approximately 4% of beneficiaries would pay a higher premium in 2007, and 5%
would pay a higher premium in 2008 and 2009.
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