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This legislation was repealed effective with 1/1/90.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 67.20 69.00 64.20
140  76.60 70.10 72.00 67.00
150  79.80 73.00 75.00 69.80
160  82.90 75.90 78.00 72.50
170  86.10 78.80 81.00 75.30
180  89.30 81.80 84.00 78.10
190  92.50 84.70 87.00 80.90
200  95.70 87.60 90.00 83.70
210  98.90 90.50 93.00 86.50
220 102.10 93.40 96.00 89.30

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0601001013
HI 01001.013 - Premiums in Effect for 1989 Due to the Enactment of Medicare Catastrophic Coverage - 03/15/1999
Batch run: 01/27/2009
Rev:03/15/1999