SOCIAL SECURITY, SSI, AND MEDICARE FACTS FOR 1993 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 1993: FICA and Self-Employment Tax Rates: The FICA 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 Hospital Insurance (HI) Trust Fund. The maximum FICA amount to be paid by an employee during 1993 is $5,528.70, up from $5,328.90 during 1992. Self-employed persons will pay a Social Security tax of 15.3% during 1993, and their maximum Social Security contribution will be $11,057.40. The self- employment tax rate of 15.3% includes 12.4% which is paid to the OASDI trust fund and 2.9% which is paid to the HI trust fund. Ceiling on Earnings Subject to Tax: During 1992 the ceiling on taxable earnings for contributions to the OASDI trust fund was $55,500, and the ceiling on taxable earnings for contribution to the HI trust fund was $130,200. These ceilings have been increased for 1993 to $57,600 for the OASDI trust fund and $135,000 for the HI 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 1992 a Social Security quarter of coverage was credited for earnings of $570 in any calendar quarter. Anyone who earned $2,280 for the year (regardless of when the earnings occurred during the year) was given four quarters of coverage. In 1993 a Social Security quarter of coverage will be credited for earnings of $590 during a calendar quarter. Four quarters can be earned with annual earnings of $2,360. 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 65 through 69 who receive Social Security retirement benefits. The monthly exempt amount in 1992 was $850 of gross earned income. During 1993 the exempt amount will be $880. Technically, this exemption is referred to as an amount of monthly gross earnings which does not show "substantial gainful activity." Earnings of $880 or more per month before taxes for a blind SSDI beneficiary in 1993 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 1993: All Social Security benefits, including retirement, survivors', disability, and dependents' benefits are increased by 3.0% beginning January, 1993. The exact dollar increase for any individual will depend upon the amount being paid. Standard SSI Benefit Increase: Beginning January, 1993, the federal payment amounts for SSI individuals and couples are as follows: individuals, $434 per month; couples, $652 per month. These amounts are increased from: individuals, $422 per month; couples, $633 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 60 days was $652 during 1992 and is increased to $676 during 1993. Beginning with the 61st day through the 90th day there is a daily co-insurance amount of $169 per day, up from $163 in 1992. 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 $338, up from $326 in 1992. For most beneficiaries there is no monthly premium charge for Medicare Part A coverage. Persons who become ineligible for Social Security Disability Insurance cash benefits can continue to receive Medicare Part A coverage premium-free for 36 months following the end of a trial work period. After that time the individual may purchase Part A coverage. The premium rate for this coverage during 1993 is $221 per month. The Medicare Part B (medical insurance) deductible remains at $100 in 1993. This is an annual deductible amount. The Medicare Part B basic monthly premium rate will increase from $31.80 charged to each beneficiary and withheld from Social Security checks during 1992 to $36.60 per month during 1993. Medicare Part B coverage may be continued for persons who complete a trial work period and become ineligible to receive Social Security Disability Insurance cash benefits. This monthly premium rate is $36.60, the same amount paid by Social Security beneficiaries through withholding from their monthly Social Security checks.