The Centers for Medicare and Medicaid Services announced on Friday that Medicare premium rates would remain stable throughout the next year for 95 percent of the nation’s elderly. However, the other 5 percent of the nearly 44 million people in Medicare are subject to a higher premium based on their income. Individuals earning more than $85,000 and couples earning more than $170,000 enter this category.

This is the sixth year when premiums don’t raise since the health insurance program began in 1965, Richard Foster, Medicare's chief actuary, said. During recent years, Medicare funding has registered an increase, in 2005 the premiums going up by 17 percent.

“It was painful to catch up, but now we have one year in which we can get rid of the catch-up amount and use that to offset the premium increases that otherwise would have happened,” Foster said.

Medicare said that premiums for Part B, a plan that covers doctor visits, outpatient services, medical equipment and other services will stay at $96.40 per month in 2009, the same rate seniors and disabled beneficiaries pay now.

Medicare fees will remain stable partly due to the reimbursing of $9.3 billion to the Part B fund, after Medicare officials discovered that money that should have been taken out of the Part A fund had been used to cover hospice payments. Part A-Hospital Insurance-covers the costs of a hospital stay that spreads over a maximum period of 100 days per ailment.

Foster stated that he expected 2010 premium rates to rise. “In the future, we’re going to have to go back to raising the premiums to match the increase in expenditures,” he said.