<DOC>
Ways and Means Committee Print WMCP:106-14]
[2000 Green Book]
[From the U.S. Government Printing Office Online via GPO Access]

                        ELIGIBILITY AND COVERAGE

                                  Aged

Part A
    Most Americans age 65 or older are automatically entitled 
to protection under part A. These individuals (or their 
spouses) established entitlement during their working careers 
by paying the HI payroll tax on earnings covered by either the 
Social Security or Railroad Retirement Systems.
    The HI tax was extended to Federal employment with respect 
to wages paid on or after January 1, 1983. Beginning January 1, 
1983, Federal employment is included in determining eligibility 
for protection under Medicare part A. A transitional provision 
allows individuals who were in the employ of the Federal 
Government both before and during January 1, 1983, to have 
their prior Federal employment considered as employment for 
purposes of providing Medicare coverage. Employees of State and 
local governments, hired after March 31, 1986, are also liable 
for the HI tax.
    Persons age 65 or older who are not automatically entitled 
to part A may obtain coverage, providing they pay the full 
actuarial cost. The 2000 monthly premium is $301 ($166 for 
persons who have at least 30 quarters of covered employment).

                          TABLE 2-1.--MEDICARE OUTLAYS, SELECTED FISCAL YEARS 1967-2010
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                        Percent
                                                                        Total     Medicare     Net      increase
                  Fiscal year                     Part A     Part B    Medicare   premium    Medicare    (over
                                                                       outlays    offsets    outlays     prior
                                                                                                         year)
----------------------------------------------------------------------------------------------------------------
1967..........................................     $2,597       $798     $3,395      -$647     $2,748         NA
1970..........................................      4,953      2,196      7,149       -936      6,213        9.1
1972..........................................      6,276      2,544      8,820     -1,340      7,480       13.0
1973..........................................      6,842      2,637      9,479     -1,427      8,052        7.6
1974..........................................      8,065      3,283     11,348     -1,708      9,640       19.7
1975..........................................     10,612      4,170     14,782     -1,907     12,875       33.6
1976..........................................     12,579      5,200     17,779     -1,945     15,834       23.0
TQ............................................      3,404      1,401      4,805       -541      4,264         NA
1977..........................................     15,207      6,342     21,549     -2,204     19,345         NA
1978..........................................     17,862      7,350     25,212     -2,443     22,769       17.7
1979..........................................     20,343      8,805     29,148     -2,653     26,495       16.4
1980..........................................     24,288     10,746     35,034     -2,945     32,089       21.1
1981..........................................     29,248     13,240     42,488     -3,340     39,148       22.0
1982..........................................     34,864     15,559     50,423     -3,856     46,567       19.0
1983..........................................     38,551     18,317     56,868     -4,253     52,615       13.0
1984..........................................     42,295     20,374     62,669     -4,942     57,727        9.7
1985..........................................     48,667     22,730     71,397     -5,562     65,835       14.0
1986..........................................     49,685     26,217     75,902     -5,739     70,163        6.6
1987..........................................     50,803     30,837     81,640     -6,520     75,120        7.1
1988..........................................     52,730     34,947     87,677     -8,798     78,879        5.0
1989..........................................     58,238     38,316     96,554    -11,590     84,964        7.7
1990..........................................     66,687     43,022    109,709    -11,607     98,102       15.5
1991..........................................     70,742     47,021    117,763    -12,174    105,589        7.6
1992..........................................     81,971     50,285    132,256    -13,232    119,024       12.7
1993..........................................     91,604     54,254    145,858    -15,305    130,553        9.7
1994..........................................    102,770     59,724    162,494    -17,747    144,747       10.9
1995..........................................    114,883     65,213    180,096    -20,241    159,855       10.4
1996..........................................    127,683     68,946    196,629    -20,088    176,591       10.5
1997..........................................    137,884     72,553    210,437    -20,421    190,016        7.6
1998..........................................    137,298     76,272    213,570    -20,747    192,823        1.5
1999..........................................    131,500     80,518    212,018    -21,561    190,457       -1.2
2000 \1\......................................    133,100     88,300    221,300    -21,800    199,500        4.7
2001 \1\......................................    140,600     98,800    239,400    -23,300    216,100        8.3
2002 \1\......................................    143,600    103,500    247,100    -25,400    221,700        2.6
2003 \1\......................................    153,500    114,300    267,800    -28,100    239,800        8.2
2004 \1\......................................    163,200    123,800    287,000    -31,100    255,900        6.7
2005 \1\......................................    176,800    136,600    313,400    -34,200    279,200        9.1
2006 \1\......................................    182,400    141,600    324,000    -37,200    286,700        2.7
2007 \1\......................................    198,000    155,300    353,200    -40,300    312,900        9.1
2008 \1\......................................    211,300    167,400    378,800    -43,600    335,300        7.2
2009 \1\......................................    226,100    181,300    407,500    -47,200    360,200        7.4
2010 \1\......................................    241,600    196,800    438,400    -51,000    387,400        7.6
----------------------------------------------------------------------------------------------------------------
\1\ Congressional Budget Office projections.

NA--Not applicable.

Note.--Totals may not add due to rounding. TQ = transitional quarter.

Source: For 1967-99: Office of the President, 2000.

Part B
    Part B of Medicare is voluntary. All persons age 65 or 
older (even those not entitled to part A) may elect to enroll 
in the SMI Program by paying the monthly premium. The 2000 
premium is $45.50 per month. Persons who voluntarily enroll in 
part A are required to enroll in part B.

                                Disabled

Part A
    Part A also covers, after a 2-year waiting period, people 
under age 65 who are either receiving monthly Social Security 
benefits on the basis of disability or receiving payments as 
disabled Railroad Retirement System annuitants. (Dependents of 
the disabled are not eligible.) In addition, most people who 
need a kidney transplant or renal dialysis because of chronic 
kidney disease are entitled to benefits under part A regardless 
of age.
Part B
    Persons eligible for part A by virtue of disability or 
chronic kidney disease may also elect to enroll in part B.

                        Number of Beneficiaries

    In fiscal year 1998, 33.4 million aged and 5.1 million 
disabled had protection under part A. In fiscal year 1998, 32.3 
million aged and 4.4 million disabled were enrolled in part B 
(table 2-2).