TN 14 (07-90)

HI 01001.013 Premiums in Effect for 1989 Due to the Enactment of Medicare Catastrophic Coverage

A. Policy

1. COVERAGE CHANGES AND FUNDING

For the period 1/89 through 12/89, the Medicare program was changed by the Medicare Catastrophic Coverage Act of 1988 from an acute care program into a catastrophic care program.

The additional long-term hospital benefits (effective 1989), drug benefits (in full effect 1991),and yearly cap on Part B expenses (effective 1990) were to be funded by an income tax-based premium for:

  • all who were eligible for Part A of Medicare on a non-premium basis,

  • had at least $150 income tax liability for 1989,

  • did not meet the exclusion relating to long-term residents of foreign countries.

Along with this funding, a specific add-on to the Part B premium was enacted.

2. ADD-ON TO THE PART B PREMIUM

The add-on to the announced Part B premium of $27.90 was $4 for most enrollees, but varied depending on whether you were a “Part B only” beneficiary (including Premium-HI enrollees) who paid no add-on at all, a resident of Puerto Rico ($1.30),or a resident of the Commonwealth and Territories of the Northern Mariana Islands, Guam, the U.S. Virgin Islands, and American Samoa ($2.10).

3. REPEAL

This legislation was repealed effective with 1/1/90. The income tax-based premium was never collected; however, the catastrophic add-on was collected from 1/89 through 12/89 for those who were enrolled in Part B during some or all of those months to help finance the Part A catastrophic benefits that had been in effect for 1989.

B. Exhibit - 1989 Premiums

Surcharge
Percent
PremiumPR PremiumC and T
Premium
Part B Only
Premium
  0  31.90 29.20 30.00 27.90
 10  35.10 32.10 33.00 30.70
 20  38.30 35.00 36.00 33.50
 30  41.50 38.00 39.00 36.30
 40  44.70 40.90 42.00 39.10
 50  47.90 43.80 45.00 41.90
 60  51.00 46.70 48.00 44.60
 70  54.20 49.60 51.00 47.40
 80  57.40 52.60 54.00 50.20
 90  60.60 55.50 57.00 53.00
100  63.80 58.40 60.00 55.80
110  67.00 61.30 63.00 58.60
120  70.20 64.20 66.00 61.40
130  73.40