/Vol. 76, No. 211/Tuesday, November 1, 2011/Notices
consequential effect on State, local, ortribal governments or on the privatesector. However, States are required topay the premiums for dually-eligible beneficiaries.Executive Order 13132 establishescertain requirements that an agencymust meet when it promulgates aproposed rule (and subsequent finalrule) that imposes substantial directrequirement costs on State and localgovernments, preempts State law, orotherwise has Federalism implications.This notice will not have a substantialeffect on State or local governments.In accordance with the provisions of Executive Order 12866, this notice wasreviewed by the Office of Managementand Budget.
(Catalog of Federal Domestic AssistanceProgram No. 93.773, Medicare—HospitalInsurance)Dated: September 22, 2011.
Donald M. Berwick,
Administrator, Centers for Medicare & Medicaid Services.
Dated: October 25, 2011.
[FR Doc. 2011–28188 Filed 10–27–11; 11:15 am]
BILLING CODE 4120–01–P
DEPARTMENT OF HEALTH ANDHUMAN SERVICESCenters for Medicare & MedicaidServices
Medicare Program; Medicare Part BMonthly Actuarial Rates, PremiumRate, and Annual DeductibleBeginning January 1, 2012
Centers for Medicare &Medicaid Services (CMS), HHS.
This notice announces themonthly actuarial rates for aged (age 65and over) and disabled (under age 65) beneficiaries enrolled in Part B of theMedicare Supplementary MedicalInsurance (SMI) program beginning January 1, 2012. In addition, this noticeannounces the monthly premium foraged and disabled beneficiaries as wellas the income-related monthlyadjustment amounts to be paid by beneficiaries with modified adjustedgross income above certain thresholdamounts. The monthly actuarial ratesfor 2012 are $199.80 for aged enrolleesand $192.50 for disabled enrollees. Thestandard monthly Part B premium ratefor 2012 is $99.90, which is equal to 50percent of the monthly actuarial rate foraged enrollees or approximately 25percent of the expected average totalcost of Part B coverage for agedenrollees. (The 2011 standard premiumrate was $115.40) The Part B deductiblefor 2012 is $140.00 for all Part B beneficiaries. If a beneficiary has to payan income-related monthly adjustment,they may have to pay a total monthlypremium of about 35, 50, 65, or 80percent of the total cost of Part Bcoverage.
January 1, 2012.
FOR FURTHER INFORMATION CONTACT
M.Kent Clemens, (410) 786–6391.
Part B is the voluntary portion of theMedicare program that pays all or partof the costs for physicians’ services,outpatient hospital services, certainhome health services, services furnished by rural health clinics, ambulatorysurgical centers, comprehensiveoutpatient rehabilitation facilities, andcertain other medical and healthservices not covered by Medicare PartA, Hospital Insurance. Medicare Part Bis available to individuals who areentitled to Medicare Part A, as well asto U.S. residents who have attained age65 and are citizens, and aliens who werelawfully admitted for permanentresidence and have resided in theUnited States for 5 consecutive years.Part B requires enrollment and paymentof monthly premiums, as described in42 CFR part 407, subpart B, and part408, respectively. The difference between the premiums paid by allenrollees and total incurred costs is met by transfers from the general fund of theTreasury.The Secretary of the Department of Health and Human Services (theSecretary) is required by section 1839 of the Social Security Act (the Act) toannounce the Part B monthly actuarialrates for aged and disabled beneficiariesas well as the monthly Part B premium.The Part B annual deductible isincluded because its determination isdirectly linked to the aged actuarial rate.The monthly actuarial rates for agedand disabled enrollees are used todetermine the correct amount of generalrevenue financing per beneficiary eachmonth. These amounts, according toactuarial estimates, will equal,respectively, one-half of the expectedaverage monthly cost of Part B for eachaged enrollee (age 65 or over) and one-half of the expected average monthlycost of Part B for each disabled enrollee(under age 65).The Part B deductible to be paid byenrollees is also announced. Prior to theMedicare Prescription Drug,Improvement, and Modernization Act of 2003 (MMA) (Pub. L. 108–173), the PartB deductible was set in statute. Aftersetting the 2005 deductible amount at$110.00, section 629 of the MMA(amending section 1833(b) of the Act)requires that the Part B deductible beindexed beginning in 2006. Theinflation factor to be used each year isthe annual percentage increase in thePart B actuarial rate for enrollees age 65and over. Specifically, the 2012 Part Bdeductible is calculated by multiplyingthe 2011 deductible by the ratio of the2012 aged actuarial rate over the 2011aged actuarial rate. The amountdetermined under this formula is thenrounded to the nearest $1.The monthly Part B premium rate to be paid by aged and disabled enrolleesis also announced. (Although the coststo the program per disabled enrollee aredifferent than for the aged, the statuteprovides that they pay the samepremium amount.) Beginning with thepassage of section 203 of the SocialSecurity Amendments of 1972 (Pub. L.92–603), the premium rate, which wasdetermined on a fiscal year basis, waslimited to the lesser of the actuarial ratefor aged enrollees, or the currentmonthly premium rate increased by thesame percentage as the most recentgeneral increase in monthly Title IIsocial security benefits.However, the passage of section 124of the Tax Equity and FiscalResponsibility Act of 1982 (TEFRA)(Pub. L. 97–248) suspended thispremium determination process.Section 124 of TEFRA changed thepremium basis to 50 percent of themonthly actuarial rate for aged enrollees(that is, 25 percent of program costs foraged enrollees). Section 606 of theSocial Security Amendments of 1983(Pub. L. 98–21), section 2302 of theDeficit Reduction Act of 1984 (DEFRA84) (Pub. L. 98–369), section 9313 of theConsolidated Omnibus BudgetReconciliation Act of 1985 (COBRA 85)(Pub. L. 99–272), section 4080 of theOmnibus Budget Reconciliation Act of 1987 (OBRA 87) (Pub. L. 100–203), andsection 6301 of the Omnibus BudgetReconciliation Act of 1989 (OBRA 89)(Pub. L. 101–239) extended theprovision that the premium be based on50 percent of the monthly actuarial ratefor aged enrollees (that is, 25 percent of program costs for aged enrollees). Thisextension expired at the end of 1990.The premium rate for 1991 through1995 was legislated by section1839(e)(1)(B) of the Act, as added bysection 4301 of the Omnibus Budget
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