TN 18 (09-01)
HI 01005.005 Standard Hospital Insurance (HI) Premium
Section 1818 of the Social Security Act, as amended by Section 103 of P.L. 100-360
A. POLICY - GENERAL
1. Computation of Standard Premium
Until 1/89, the amount of the premium depended indirectly on changes in hospital costs. Effective 1/89, the HI premium is based on the estimated costs that apply to beneficiaries age 65 or over during the calendar year for which the premium is effective. This resulted in a decrease in the premium for 1989. (See HI 01005.011 Exhibit.)
2. Full Actuarial Cost Paid by Enrollee
The average estimated cost of providing Premium-HI benefits is to be paid in full by individuals who enroll for such coverage. No funds from general revenues of the Federal Government are contributed toward the estimated cost.
3. Change in Effective Dates
The effective date for the premium changes was revised from July to January by an amendment to the law in 4/83 (P.L. 98-21). The amendment effectively froze the 7/82 - 6/83 premium rate so that it applied through 12/83.
B. POLICY - STANDARD HOSPITAL INSURANCE (HI) PREMIUM
See HI 01005.011 for premiums for 1986 to present.