In a nutshell, this is how I understand the argument coming from HHS's Center for Medicare Management. With more services being covered and the Medicare prescription drug benefit going into effect soon, people will be receiving more services and as such, they shouldn't have a problem paying more. However, the American Medical Association put out a press release earlier this year which made the point that the increased coverage of services was justified since many of those services can now be performed as less expensive outpatient procedures.

So then, all that's left to justify the increase in premiums is the Medicare prescription drug benefit. Funny, but when GOP candidates around the country were campaigning on that benefit, I don't recall them saying anything about needing to hike premiums to pay for it.

Meanwhile, over at Operation Truth, Iraq veteran Perry Jefferies points to an Army Times article about the push to cut military healthcare spending in favor of large-scale weaponry.

I assume this is all part of the new Republican 'fiscal conservatism'. Cut benefits and hike premiums for the elderly, the disabled, and soldiers in order to pay for tax cuts and no-bid contracts in Iraq and the Gulf Coast. Lovely.