Order Code 94-27 EPW
Report for Congress
Received through the CRS Web
Social Security: Brief Facts and Statistics
Updated March 20, 2003
Geoffrey Kollmann
Domestic Social Policy Division

Congressional Research Service ˜ The Library of Congress

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Social Security: Brief Facts and Statistics
Summary
This document provides brief facts and statistics about Social Security that are
frequently requested by Members of Congress and their staffs. It includes
information about Social Security taxes and benefits, the program’s impact on
recipients’ incomes, federal tax receipts, federal spending and the economy,
administrative information, and selected facts about Medicare.

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Contents
Recipient Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Recipients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Where Recipients Live . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Tax Facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Social Security Taxpayers in 2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Social Security Tax Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
How the Tax Rates Are Divided . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
How Much Earnings Are Taxable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Annual OASDI and HI Tax Payments in 2003 . . . . . . . . . . . . . . . . . . . . . . . 5
Historical Level of Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Workers Exempt From the Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
How Long It Takes To Get Your Taxes Back . . . . . . . . . . . . . . . . . . . . . . . . 6
Social Security Taxpayers Per Recipient . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Benefit Facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Average Monthly Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Initial Monthly Benefits for Workers Retiring in 2003 . . . . . . . . . . . . . . . . . 7
“Quarters of Coverage” (QCs) Required for Eligibility . . . . . . . . . . . . . . . . . 7
Maximum Monthly Earnings From Work Permitted for Disability Benefits 8
Minimum Ages To Receive Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Ages At Which Persons Receive Full Retirement Benefits . . . . . . . . . . . . . . 8
Benefit Formula . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
New Benefit Awards as Percent of Final Year’s Earnings . . . . . . . . . . . . . . 9
Benefit Reductions and Offsets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Social Security Benefits May Be Partially Taxable . . . . . . . . . . . . . . . . . . . 10
Social Security Benefit Increases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Economic Facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Income of Social Security Recipients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Social Security’s and Medicare’s Costs as % of Federal Budget, FY2003 . 12
Social Security and Medicare Spending as
Percent of Gross Domestic Product (GDP) . . . . . . . . . . . . . . . . . . . . . 13
Financial Status of Social Security Trust Funds . . . . . . . . . . . . . . . . . . . . . 13
Administrative Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Offices, Employees, and Administrative Costs . . . . . . . . . . . . . . . . . . . . . . 14
800 Telephone Number for SSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Commissioner of Social Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Administrator of the Centers for Medicare and Medicaid Services* . . . . . . 14
Secretary of Health and Human Services . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Selected Medicare Facts for 2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Part A (Hospital Insurance) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Part B (Supplementary Medical Insurance (SMI)) . . . . . . . . . . . . . . . . . . . . 15
Financial Status of Trust Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

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Social Security: Brief Facts and Statistics
This document provides facts and statistics about Social Security that are
frequently requested by Members of Congress and their staffs. Its purpose is to
provide quick answers to basic questions about the program. It should not be treated
as a guide to Social Security. The reader is advised to consult other sources for
explanations of how eligibility and benefits are determined and how the program is
financed. Among them are the Social Security Administration’s (SSA’s) web site at
[http://www.ssa.gov], and the Congressional Research Service’s (CRS’s) on-line
electronic briefing book on Social Security, accessible through the CRS homepage
at [http://www.crs.gov] (for congressional office users only). SSA also issues
numerous pamphlets on various aspects of the program as well as a lengthy
Handbook on Social Security. For other sources that provide data and basic
descriptive material, see the references listed at the end of this document.
This document is updated periodically.

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CRS-2
Recipient Statistics
Recipients (as of December 2002)
46.4 million
100.0%
Old-Age and Survivors Insurance
39.2 million
84.0%
Disability Insurance
7.2 million
16.0%
Entitled on their own work records
34.7 million
74.8%
Entitled as dependents
11.7 million
25.2%
C
Widow(er)s & surviving parents
(4.9 million)
(10.6%)
C
Wives and husbands
(2.9 million)
(6.3%)
C
Young children & adults
disabled since childhood
(3.9 million)
(8.4%)
Age 65 or older
33.6 million
72.4%
Under age 65
12.8 million
27.6%
Totals for subcategories may not add up due to rounding.
Where Recipients Live (as of December 2001)
Number
% of total
Totala
45,874,040
100.0%
Alabama
841,730
1.8%
Alaska
56,940
0.1%
Arizona
813,180
1.8%
Arkansas
520,680
1.1%
California
4,247,470
9.3%
Colorado
542,210
1.2%
Connecticut
580,180
1.3%
Delaware
137,170
0.3%
District of Columbia
73,390
0.2%
Florida
3,235,390
7.1%
Georgia
1,125,190
2.5%
Hawaii
188,920
0.4%
Idaho
199,640
0.4%
Illinois
1,845,500
4.0%
Indiana
1,000,050
2.2%
Iowa
541,280
1.2%
Kansas
440,620
1.0%
Kentucky
746,330
1.6%
Louisiana
716,220
1.6%
Maine
253,810
0.6%
Maryland
733,940
1.6%
Massachusetts
1,061,920
2.3%

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CRS-3
Recipient Statistics—continued
Where Recipients Live (as of December 2001)
Number
% of total
Michigan
1,658,480
3.6%
Minnesota
746,100
1.6%
Mississippi
523,460
1.1%
Missouri
1,021,790
2.2%
Montana
159,180
0.3%
Nebraska
285,900
0.6%
Nevada
299,910
0.7%
New Hampshire
204,140
0.4%
New Jersey
1,355,570
3.0%
New Mexico
285,250
0.6%
New York
3,014,910
6.6%
North Carolina
1,355,570
3.0%
North Dakota
114,380
0.2%
Ohio
1,921,920
4.2%
Oklahoma
597,270
1.3%
Oregon
577,570
1.3%
Pennsylvania
2,365,850
5.2%
Rhode Island
191,520
0.4%
South Carolina
703,560
1.5%
South Dakota
136,560
0.3%
Tennessee
1,010,900
2.2%
Texas
2,672,950
5.8%
Utah
246,330
0.5%
Vermont
105,330
0.2%
Virginia
1,053,340
2.3%
Washington
858,510
1.9%
West Virginia
394,510
0.9%
Wisconsin
905,450
2.0%
Wyoming
78,420
0.2%
Outlying Areas:
American Samoa
5,320
0.0%
Guam
11,370
0.0%
Puerto Rico
677,130
1.5%
Virgin Islands
14,020
0.0%
Foreign Countries
404,640
0.9%
a Total includes beneficiaries with unknown state code.

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CRS-4
Tax Facts
Social Security Taxpayers in 2003
Number of wage and salaried taxpayers
145.7 million
Number of self-employed taxpayers
14.8 million
Total taxpayers*
154.6 million
*
Includes people who are both self-employed and wage or salaried employees.
Social Security Tax Rates
FICA rate is paid by employee and employer:
7.65% each
SECA rate is paid by self-employed:
15.30%*
FICA = Federal Insurance Contributions Act
SECA = Self-Employment Contributions Act
*
The self-employed now compute the tax using only 92.35% of net earnings, and one-half of
the tax so computed is deductible for income tax purposes.
How the Tax Rates Are Divided
FICA rate
(employee and
SECA
employer, each)
rate
Old-age, survivors, and disability insurance (OASDI)
6.20%
12.4%
Hospital insurance (HI)
1.45%
2.9%
Total (OASDI and HI)
7.65%
15.3%
How Much Earnings Are Taxable
2001
2002
2003
Maximum taxable for OASDI:*
$80,400
$84,900
$87,000
Maximum taxable for HI:
No limit
No limit
No limit
*Adjusted yearly to reflect the growth of average wages.
Percent of workers with earnings below OASDI maximum (1998 est.): 94.0%

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CRS-5
Tax Facts—continued
Annual OASDI and HI Tax Payments in 2003*
Earnings level
FICA**
SECA***
Minimum wage
($10,712/year)
$819
$1,438
Average
($34,731/year)
$2,657
$4,539
Maximum
($87,000/year)
$6,656
$10,449
*
Estimate based on 2003 trustees’ report assumptions.
**
Employee share only.
***
Figures are net of federal income tax adjustments. Workers earning the
minimum or the average wage are assumed to be in the 10% and 15%
marginal tax brackets, respectively. Maximum-wage earners are assumed to
be in the 30% marginal tax bracket.
Historical Level of Taxes
Tax rates:
FICAa
SECA
Maximum taxable earningsb
1940
1.00%
—
$3,000
1950
1.50
—
3,000
1960
3.00
4.50%
4,800
1970
4.80
6.90
7,800
1980
6.13
8.10
25,900
1990
7.65
15.30
51,300
2000
7.65
15.30
76,200 (OASDI) (No limit HI)
2003
7.65
15.30
87,000 (OASDI) (No limit HI)
Amounts paid:
Average earner
Maximum earner
FICAa
SECA
FICAa
SECA
1940
$ 12
—-
$ 30
—-
1950
38
—-
45
—-
1960
120
$ 180
144
$ 216
1970
297
427 374
538
1980
767
1,014 1,588
2,098
1990
1,609
2,748c
3,924
6,234c
2003
2,657
4,539c
6,656
10,449c
a Employee share only for the FICA column. An average earner is someone who earned
average wages throughout his or her working years (average wages are estimated for
2003). A maximum earner is someone who always earned the maximum wage subject to
OASDI taxes ($87,000 in 2003).
b Maximum taxable earnings were the same for OASDI and HI through 1990.
c Figures are net of federal income tax adjustments. In 1990, the average and maximum wage
workers were assumed to be in the 15% and 28% marginal tax brackets, respectively. In
2003, they are assumed to be in the 15% and 30% marginal tax brackets, respectively.

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CRS-6
Tax Facts—continued
Workers Exempt From the Tax
State and local government workers participating in alternative retirement systems
(HI tax is mandatory for workers hired since April 1, 1986).
Election workers earning $1,200 or less a year (in 2003).
Career federal employees hired before 1984 who did not choose Social Security
coverage (HI tax is mandatory for all federal workers).
College students working at their academic institutions.
Ministers who choose not to be covered, and certain religious sects.
Household workers earning less than $1,400 a year (in 2003), and those under age 18
for whom household work is not their principal occupation.
Self-employed workers with annual net earnings below $400.
How Long It Takes To Get Your Taxes Back (in years)*
Employee/employer shares
Employee share alone
combined
Worker
Worker and spouse
Worker
Worker and spouse
Low-wage
earner
5.4
3.5
12.0
7.5
Average-
wage earner
7.5
4.8
17.4
10.5
Maximum-
wage earner
10.4
6.5
25.7
14.8
*Time it takes to recover retirement portion of the Social Security payroll tax with
interest. Assumes worker retired in January 2003 at age 65 after having worked steadily
since age 21 (age 22 for maximum-wage earner). A low-wage earner is someone who
always earned approximately 45% of the national average wage. A maximum-wage
earner is someone who always earned the maximum amount subject to the Social Security
tax. Assumes the worker’s spouse is also age 65. The “retirement portion” of the tax is
approximate since the law does not actually isolate the “old age” portion. Medicare
benefits and taxes are excluded from the figures. Interest assumed to be equal to rates
that accrue on government securities with 4-year or longer maturities. (Figures based on
assumptions of the 2003 trustees’ report.)
Social Security Taxpayers Per Recipient
1950
16.5 to 1
2002 (estimated)
3.3 to 1
2030 (projected)
2.2 to 1
2075 (projected)
1.8 to 1

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CRS-7
Benefit Facts
Average Monthly Benefits
Monthly payment for January 2003
Before COLA
After COLA*
For all retired workers
$882
$895
For all disabled workers
822
833
For retired worker and spouse
1,463
1,483
For aged widow(er) alone
850
862
For widowed mother/father and 2 children
1,812
1,838
For disabled worker, spouse, and child(ren)
1,376
1,395
*Includes January 2003 cost-of-living adjustment (COLA) of 1.4%.
Initial Monthly Benefits for Workers Retiring in 2003 (figures based
on assumptions of the 2003 trustees’ report)
At age 62
At age 65
Low-wage earner
$ 572
$ 701
Average-wage earner
942
1,158
Maximum-wage earner
1,404
1,721
“Quarters of Coverage” (QCs) Required for Eligibility
2002
2003
Annual covered earnings needed to obtain one QC*
$870
$890
Maximum QCs that can be credited in any year
4
4
QCs needed for most retirement or survivor benefits**
40
40
QCs needed for disability benefits**
40
40
(with 20 earned during 40-quarter period before disability began)
Minimum QCs needed for survivor or disability benefits
6
6
*Adjusted yearly to reflect the growth of average wages.
**Fewer QCs may be required in some survivor and disability cases.

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CRS-8
Benefit Facts—continued
Maximum Monthly Earnings From Work Permitted for
Disability Benefits (i.e., “substantial gainful activity” level)*
2002
2003
Non-blind disabled
$780
$800
Blind disabled
1,300
1,330
*Adjusted yearly to reflect the growth of average wages.
Minimum Ages To Receive Benefits
For retired worker and spouse
62
For widow/widower
60
For disabled widow/widower
50
For mother/father caring for child under age
any age
16
For child
under age 18 (or 19, if
in high school)
For disabled worker
any age up to FRA*
*The “full retirement age” or age at which benefits are not reduced for retiring “early.”
( see following table).
Ages At Which Persons Receive Full Retirement Benefits
For retired worker and spouse,
born before 1938
65
born 1938
65 and 2 months
born 1939
65 and 4 months
born 1940
65 and 6 months
born 1941
65 and 8 months
born 1942
65 and 10 months
born 1943-1954
66
born 1955
66 and 2 months
born 1956
66 and 4 months
born 1957
66 and 6 months
born 1958
66 and 8 months
born 1959
66 and 10 months
born 1960 and later
67

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CRS-9
Benefit Facts—continued
Benefit Formula
(applies to workers who reach age 62 or who become disabled or die before age 62 in 2003)
For basic benefit (or primary insurance amount):*
90% of first $606 of AIME,** plus
32% of AIME over $606 through $3,653, plus
15% of AIME over $3,653
For maximum family benefit:
150% of first $774 of basic benefit, plus
272% of basic benefit over $774 through $1,118, plus
134% of basic benefit over $1,118 through $1,458, plus
175% of basic benefit over $1,458
*
Without adjustment for early or delayed retirement or other factors.
**
AIME = average indexed monthly earnings
New Benefit Awards as Percent of Final Year’s Earnings
(new retiree age 65 in 2003; figures based on assumptions of 2003 trustees’ report)
Low-wage earner
56%
Average-wage earner
42%
Maximum-wage earner
24%
Benefit Reductions and Offsets
Reduction
rate for
Earnings test (reduction in
2002
2003
earnings
benefits on account of
exempt
exempt
above exempt
earnings from work):
amounts*
amounts*
amounts
Before year in which worker
reaches full retirement age
$11,280
$11,520
50.0%
For months before birthday
in year in which worker
attains full retirement age
$30,000
$30,720
33.3%
Month in which worker
reaches full retirement age
and later
all earnings
all earnings
none
Spousal dual entitlement limitation: $1 reduction in spousal benefits for
each $1 of benefits earned as a worker.
Government pension offset: $0.662/3 reduction in spousal benefits for each $1
of pension received from government employment not covered by Social
Security.
Windfall reduction: 40% factor is used as first step of benefit formula
(instead of 90%), if worker receives a pension from government employment
not covered by Social Security and has less than 21 years of substantial Social
Security coverage (factor is larger if worker has 21 or more years of substantial
coverage). Reduction cannot exceed 50% of the government pension.

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CRS-10
Benefit Facts—continued
Social Security Benefits May Be Partially Taxable
Up to 50% of benefits are subject to federal income taxes if adjusted gross income
plus tax-free interest plus one-half of Social Security benefits is:
—
Over $25,000, but not more than $34,000 for a single person
—
Over $32,000, but not more than $44,000 for a married couple filing jointly
Example #1:
Single retiree’s adjusted gross income
$23,000
One-half of retiree’s Social Security benefits
+4,000
Interest from tax-free municipals
+1,000
Total
$28,000
Less: exempt amount
-25,000
Excess over $25,000
$ 3,000
Amount of taxable Social Security benefits (One-half
of excess or one-half of benefits, whichever is lower)
$1,500
Up to 85% of benefits are subject to federal income taxes if adjusted gross income
plus tax-free interest plus one-half of Social Security benefits is:
—
Over $34,000 for a single person
—
Over $44,000 for a married couple filing jointly
Example #2:
Single retiree’s adjusted gross income
$32,000
One-half of retiree’s Social Security benefits
+5,000
Total
37,000
Less: exempt amount
-25,000
Excess
12,000
Taxable benefits based on income
between $25,000 and $34,000
$4,500
(lower of 50% of excess, 50% of benefits, or $4,500)
Taxable benefits based on income above $34,000
[($37,000 - $34,000) x 85%]
$2,550
Total benefits taxable (taxable portions as calculated
above, or 85% of benefits, if lower)
$7,050

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CRS-11
Benefit Facts—continued
Social Security Benefit Increases
January 2003
1.4%
January 2002
2.6%
January 2001
3.5%
January 2000
2.5%*
January 1999
1.3%
January 1998
2.1%
January 1997
2.9%
January 1996
2.6%
January 1995
2.8%
January 1994
2.6%
January 1993
3.0%
January 1992
3.7%
January 1991
5.4%
January 1990
4.7%
January 1989
4.0%
January 1988
4.2%
January 1987
1.3%
January 1986
3.1%
January 1985
3.5%
January 1984
3.5%
July 1982
7.4%
July 1981
11.2%
July 1980
14.3%
July 1979
9.9%
July 1978
6.5%
July 1977
5.9%
July 1976
6.4%
July 1975**
8.0%
April-July 1974***
11.0%
October 1972
20.0%
February 1971
10.0%
February 1970
15.0%
March 1968
13.0%
February 1965
7.0%
February 1959
7.0%
October 1954
13.0%
October 1952
12.5%
October 1950
77.0%
* As originally computed, the COLA payable in January 2000 was 2.4%. Later, it was
corrected to 2.5% under P.L. 106-554.
** Automatic cost-of-living adjustments (COLAs) began.
*** Provided in two steps.

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CRS-12
Economic Facts
Income of Social Security Recipients
(estimated for calendar year 2000)
% of aggregate Social Security
Annual level of individual or
% of recipients in
benefits paid to recipients in
couple income*
income band
income band
Less than $10,000
18.8%
12.6%
$10,000-15,000
12.8%
12.5%
$15,000-20,000
10.8%
10.8%
$20,000-25,000
8.6%
9.3%
$25,000-30,000
7.5%
7.8%
$30,000-40,000
12.0%
12.8%
$40,000-50,000
9.4%
9.9%
$50,000-100,000
14.6%
17.3%
Over $100,000
5.4%
6.9%
All
100.0%
100.0%
*Includes all cash income and capital gains.
Source:
Congressional Budget Office (House Ways and Means Committee 2000 Greenbook).
Income of the Population age 65 and older in 2000 derived
from:*
Single
Married
Social Security
46%
34%
Other retirement systems
18%
18%
Interest, dividends, rents
19%
17%
Earnings
14%
29%
Other
4%
2%
Percent of the Population age 65 and older in 2000:*
With incomes below poverty line
17%
5%
With no income from Social Security
10%
10%
With under 50% of income from Social Security
29%
47%
With 50% or more of income from Social Security
71%
53%
With 90% or more of income from Social Security
40%
20%
With 100% of income from Social Security
26%
11%
*Data from SSA. Office of Policy. Income of the Population 55 and Older. February, 2002.
Numbers may not sum due to rounding.
Social Security’s and Medicare’s Costs as % of Federal
Budget, FY2003 (Estimated % of unified budget total, CBO, January 2003)
Share of outlays
Social Security
22%
Medicare
13%
Combined
35%

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CRS-13
Economic Facts—continued
Social Security and Medicare Spending as
Percent of Gross Domestic Product (GDP)
(estimated CY2003, from 2003 trustees’ report, issued March 2003)
Social Security
4.38%
Medicare 2.56%
Social Security and Medicare, combined
6.94%
Financial Status of Social Security Trust Funds (2003 trustees’
report)
Balance of trust
CY
Income
Outgo
funds (end of year)
(intermediate forecast, $s in billions)
2002
$ 627
$ 462
$1,378
2003
643
478
1,543
2004
679
499
1,723
2005
726
522
1,927
2006
774
548
2,253
2007
826
578
2,401
2008
878
612
2,667
2009
932
650
2,949
2010
988
691
3,245
2011
1,048
737
3,556
2012
1,108
786
3,878
Estimated peak of trust
funds’ balances: $7.5 trillion in 2027
Average 75-year surplus (+) or deficit (-) as % of program income
Optimistic forecast
+3.1
Intermediate forecast
-13.9
Pessimistic forecast
-36.4
Estimated year of insolvency (intermediate forecast):
Old-Age and Survivors Insurance Trust Fund
2044
Disability Insurance Trust Fund
2028
Combined
2042

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CRS-14
Administrative Information
Offices, Employees, and Administrative Costs
Location of SSA headquarters:
Baltimore, Maryland
Number of:*
Regional offices
10
Field offices
1,336
Hearings offices
138 permanent
Teleservice centers
36
Program service centers
7
Data operations centers
1
Number of SSA employees:
(FY2003 full-time equivalents)
63,606
Administrative costs of Social Security:**
$3.8 billion
Administrative costs as percent of benefit costs:**
0.9%

*
Data from SSA’s Accountability Report for Fiscal Year 2002.
**
Data for fiscal year 2002 from the 2003 OASDI trustees’ report.
800 Telephone Number for SSA
800-772-1213
Commissioner of Social Security
Jo Anne B. Barnhart
Altmeyer Building
6401 Security Blvd.
Baltimore, MD 21235
Administrator of the Centers for Medicare and Medicaid
Services*
Thomas A. Scully
7500 Security Blvd.
Baltimore, MD 21244
*Formerly the Health Care Financing Administration
Secretary of Health and Human Services
Tommy G. Thompson
Hubert Humphrey Building
200 Independence Ave., S.W.
Washington, DC 20201

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CRS-15
Selected Medicare Facts for 2003
Part A (Hospital Insurance)
Inpatient hospital deductible:
$840 per benefit period*
Coinsurance:
first 60 days
none
61-90 days
$210 per day
91-150 days**
$420 per day
after 150 days***
no benefits
Skilled nursing facility coinsurance:
first 20 days
none
21-100 days
$105.00 per day
after 100 days
no benefits
Premium “buy-in” for uninsured:
$316 per month****
*
T
his is not an annual deductible. A new benefit period begins 60 days after discharge from
a hospital or skilled nursing facility.

**
These are so-called “lifetime reserve” days which may be used only once in a lifetime.

***
When a beneficiary has exhausted all available days, no additional Medicare inpatient
coverage is available during the benefit period.
**** $174 per month for some enrollees who had, or whose spouse had, 30 to 39 quarters of
Social Security coverage.
Part B (Supplementary Medical Insurance (SMI))
Deductible
$100 per year
Coinsurance
20%
Part B premium
$58.70 per month (2003)
$54.00 per month (2002)
$50.00 per month (2001)
$45.50 per month (2000)
$45.50 per month (1999)
$43.80 per month (1998)
$43.80 per month (1997)
$42.50 per month (1996)

---

CRS-16
Selected Medicare Facts for 2003—continued
Financial Status of Trust Funds (2003 trustees’ report)
Long-range projected condition of HI trust fund:
Average 75-year surplus or deficit (-) as percent of program income
Optimistic forecast
-1.2%
Intermediate forecast
- 71%
Pessimistic forecast
-211%
Estimated year of HI insolvency (intermediate forecast): 2026
SMI:
Premiums and government contributions are adjusted
annually to ensure adequate financing.

---

CRS-17
References
Sources for Information in this Document
U.S. Social Security Administration. 2003 annual reports of the boards of trustees
of the old age, survivors, and disability insurance, hospital insurance, and
supplementary medical insurance trust funds. Washington, 2003.
Annual Statistical Supplement to the Social Security Bulletin, 2002.
Unpublished data from the Social Security Administration, Office of Research
and Statistics.
CRS Report 95-149, Social Security: The Relationship of Taxes and Benefits for
Past, Present and Future Retirees, by Geoffrey Kollmann.
Other References for Program Descriptions
Myers, Robert J. Social Security. 4th ed. Philadelphia, University of Pennsylvania
Press, 1993.
U.S. Congress. House. Committee on Ways and Means. 2000 Green Book:
Background Material and Data on Programs Within the Jurisdiction of the
Committee on Ways and Means. Washington, GPO, 2000. 1,575 p. (106th
Cong., 2nd session. WMCP 106-14)
General Information
CRS Info pack IP153S Social Security: The Basics, Congressional Reference
Division.
CRS Info pack IP435S Social Security Reform, Congressional Reference Division.
CRS Electronic Briefing Book, Social Security. This briefing book is a compilation
of various CRS reports listed in this section, as well as other source
documentation on the issue of Social Security. It can be found on the CRS
Internet web site at: [http://www.congress.gov/brbk/html/ebssc1.html].
Benefit Facts
CRS Report 94-803, Social Security: The Cost-of-Living Adjustment in January
2003, by David Koitz, Geoffrey Kollmann, and Gary Sidor.
CRS Report 98-789, Social Security Earnings Test: Recent and Proposed Changes,
by Geoffrey Kollmann.
CRS Report 94-622, Social Security: Raising the Retirement Age: Background and
Issues, by Geoffrey Kollmann.

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CRS-18
CRS Report RS20148, Social Security: The Government Pension Offset, by Geoffrey
Kollmann.
CRS Report 98-35, Social Security: The Windfall Elimination Provision, by Geoffrey
Kollmann.
Tax Facts
CRS Report 94-28, Social Security and Medicare Taxes and Premiums: A Fact
Sheet, by Geoffrey Kollmann.
CRS Report RL30581, Social Security: Taxation of Benefits, by Geoffrey Kollmann.
CRS Report 94-593, Social Security Taxes: Where Do Surplus Taxes Go and How
Are They Used?, by Geoffrey Kollmann.
Economic Facts
CRS Report 95-543, The Financial Outlook for Social Security and Medicare, by
Geoffrey Kollmann and Dawn Nuschler.
CRS Report 93-886, Investment of the Social Security Trust Funds: A Fact Sheet, by
Geoffrey Kollmann.
CRS Issue Brief IB98048, Social Security Reform, by Geoffrey Kollmann and Dawn
Nuschler.
CRS Report 97-77, Social Security: Long-Range Projections, by Dawn Nuschler.
CRS Report 95-206, Social Security’s Treatment Under the Federal Budget: A
Summary, by Dawn Nuschler.

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