SOCIAL SECURITY, SSI, AND MEDICARE FACTS FOR 1992
                                   by James Gashel

     The beginning of each year brings with it annual adjustments in Social Security
programs. The changes include new tax rates, higher exempt earnings amounts, Social
Security and SSI cost-of-living increases, and changes in deductible and co-
insurance requirements under Medicare. Here are the new facts for 1992:
     FICA (Social Security) Tax Rate: The tax rate for employees and their employers
remains at 7.65%. This rate includes payments to the Old Age, Survivors, and
Disability Insurance (OASDI) Trust Fund of 6.2% and an additional 1.45% payment to
the Health Insurance (HI) Trust Fund. The maximum FICA amount to be paid by an
employee during 1992 is $5,584.00, up from $5,123.30 during 1991. Self-employed
persons will pay a Social Security tax of 15.3% during 1992, and their maximum Social
Security contribution will be $8,491.50. Self-employed persons who earn more than
$55,000 will also pay an additional amount into the Health Insurance Trust Fund. 
     Ceiling on Earnings Subject to Tax: During 1991 the ceiling on taxable earnings
for contributions to the OASDI trust fund was $53,400.00, and the ceiling on taxable
earnings for contributions to the health insurance trust fund was $125,000. These
ceilings have been increased for 1992 to $55,500 for the OASDI trust fund and
$130,200 for the health insurance trust fund.
     Quarters of Coverage: Eligibility for retirement, survivors, and disability
insurance benefits is based in large part on the number of quarters of coverage
earned by any individual during periods of work. Anyone may earn up to four quarters
of coverage during a single year. During 1991 a Social Security quarter of coverage
was credited for earnings of $540.00 in any calendar quarter. Anyone who earned
$2,160.00 for the year (regardless of when the earnings occurred during the year) was
given four quarters of coverage. In 1992 a Social Security quarter of coverage will
be credited for earnings of $570 during a calendar quarter. Four quarters can be
earned with annual earnings of $2,280.
     Exempt Earnings: The earnings exemption for blind people receiving Social
Security Disability Insurance (SSDI) benefits is the same as the exempt amount for
individuals age sixty-five through sixty-nine who receive Social Security retirement
benefits. The monthly exempt amount in 1991 was $810.00 of gross earned income.
During 1992 the exempt amount will be $850.00. Technically, this exemption is
referred to as an amount of monthly gross earnings which does not show "substantial
gainful activity." Earnings of $850.00 or more per month before taxes for a blind
SSDI beneficiary in 1992 will show substantial gainful activity after subtracting any
unearned (or subsidy) income and applying any deductions for impairment-related work
expenses.
     Social Security Benefit Amounts for 1992: All Social Security benefits,
including retirement, survivors', disability, and dependents' benefits, are increased
by 3.7% beginning January, 1992. The exact dollar increase for any individual will
depend upon the amount being paid. 
     Standard SSI Benefit Increase: Beginning January, 1992, the federal payment
amounts for SSI individuals and couples are as follows: individuals, $422.00 per
month; couples, $633.00 per month. These amounts are increased from: individuals,
$407.00 per month; couples, $610.00 per month.
     Medicare Deductibles and Co-insurance: Medicare Part A coverage provides
hospital insurance to most Social Security beneficiaries. The co-insurance payment is
the charge that the hospital makes to a Medicare beneficiary for any hospital stay.
Medicare then pays the hospital charges above the beneficiary's co-insurance amount.
The Part A co-insurance amount charged for a hospital stay of not longer than sixty
days was $628.00 during 1991 and is increased to $652.00 during 1992. Beginning with
the sixty-first day through the ninety-first day there is a daily co-insurance amount
of $163.00 per day, up from $157.00 in 1991. Each Medicare beneficiary has sixty
"reserve days" for hospital stays longer than ninety days. The co-insurance amount to
be paid during each reserve day is $326.00, up from $314.00 in 1991.
     The Medicare Part B (medical insurance) deductible remains at $100.00 in 1992.
This is not an annual deductible amount. A new benefit period can begin sixty days
after discharge from a hospital or skilled nursing facility. The Medicare Part B
basic monthly premium rate will increase from $29.90 charged to each beneficiary
during 1991 to $31.80 per month during 1992.