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Date: Friday, Oct. 18, 1996
FOR IMMEDIATE RELEASE
Contact: HCFA Press Office, (202) 690-6145

The Department of Health and Human Services today announced Medicare's 1997 Part A hospital deductible and the monthly Part B premium to be paid by Medicare beneficiaries. The deductible and premium are recalculated each year to reflect changes in the costs of health care or changes in Medicare law.

The Part A deductible for beneficiaries admitted to hospitals in 1997 will be $760, an increase of $24 over this year's $736. The monthly Part B premium will be $43.80, a $1.30 increase over the $42.50 per month in 1996. These relatively modest increases for 1997 reflect increases in Medicare spending lower than previously projected.

Earlier this week, the Social Security Administration announced a 2.9 percent cost-of-living increase in Social Security benefits that will take effect on Jan. 3, 1997. The increase will result in an extra $21 a month for the average Social Security recipient.

PART A DEDUCTIBLE: The Part A deductible is a beneficiary's only cost for up to 60 days of inpatient hospital services during a benefit period. A benefit period begins when the beneficiary enters the hospital and ends when he or she has been out of the hospital or a skilled nursing facility for 60 consecutive days. The Part A deductible is based on the rates that Medicare pays hospitals for inpatient care.

For hospital stays longer than 60 days, a beneficiary would be responsible for $190 per day for the 61st through 90th days, and $380 per day for the 91st through 150th days.

When a beneficiary needs therapeutic care in a skilled nursing facility after at least three consecutive days of inpatient hospital care, Medicare pays 100 percent of covered expenses for the first 20 days. The beneficiary is responsible for $95 per day for the 21st through the 100th day.

PART B PREMIUM: Part B Medicare helps beneficiaries pay for the services of physicians and other medical practitioners, hospital outpatient services, independent clinical laboratory work, and durable medical equipment and supplies. The premium is determined by a formula, set in law, to cover 25 percent of currently estimated costs. The Part B deductible, also set by law, remains at $100.