Under section 13508 of P.L. 103-66, individuals who are eligible for Premium-HI (i.e.,
are age 65 or over, but not insured for monthly title II (Social Security) benefits
and/or premium-free HI, or are disabled and lose premium-free HI solely because of
work) and have at least 30 quarters of coverage (QCs) are eligible for a reduction
in the amount of their HI premium. In some cases, an individual whose spouse or former
spouse has at least 30 QCs may also qualify for HI premium reduction (see HI 01005.007C.). The first month for which a reduced HI premium may apply is 1/94.
The amount of the reduction for months in 1994 was 25 percent. The amount of the reduction
increased by 5 percent effective January of each year until the maximum reduction
of 45 percent was reached in calendar year 1998.