Under section 278 of Public Law 97-248 (Tax Equity and Fiscal Responsibility Act of
1982), Federal employees are subject to the hospital insurance (HI) Medicare portion
of the Federal Insurance Contributions Act (FICA) tax beginning January 1, 1983. In
return, such employees earn quarters of coverage (QC) for Medicare only entitlement
purposes from government employment for wages paid after December 31, 1982. In addition,
under a transitional provision in the law, Federal employees in pay status during
January 1983 may receive deemed QCs for their Federal service prior to 1983. The first
possible month of HI entitlement based on government employment quarters of coverage
(GEQC) is January 1983. However, the qualifying period may begin prior to January
1983.