This is the first time since 2000 when Medicare premiums rates won’t go up, the federal government announced Friday. This means that the monthly premium for the vast majority of the elderly and disabled participating in Medicare will hold steady at $96.40 next year.

Premiums usually go up to reflect higher costs and demand for care projected for the coming year. Health care costs have been rising much more quickly than overall inflation over the years. The decision to hold premiums steady is partially because of increased reserves in the Medicare trust fund. The Part B trust fund was reimbursed $9.3 billion earlier this year after officials discovered money had been inadvertently drawn to cover hospice benefits that should have come from the separate Part A hospital fund.

The vast majority of beneficiaries don't pay a monthly charge for that coverage, but they will pay a $1,068 when admitted to a hospital. That charge is an increase of $44 from current levels.

"In the future, we're going to have to go back to raising the premiums to match the increase in expenditures," said Richard Foster, chief actuary at the Centers for Medicare and Medicaid Services.

Because of the one-time events that led to next year's premium relief, Medicare officials expect 2010 rates to rise. Foster said the formula is on track to create a 20 percent reduction in physician payments for Part B Medicare services in 2010.

Officials feel that this would be the fifth time since 1976 that premiums did not go up and of the 44 million people in Medicare about 5 percent are subject to a higher premium based on their income.