Beneficiary Income and Out-of-Pocket Costs
Guidance for a comparison of the annual report of the Medicare Board of Trustees to Congress which includes a comparison of growth trends for (i) beneficiary income, and (ii) beneficiary "out-of-pocket" costs for premiums and cost-sharing liabilities under the Supplementary Medical Insurance (SMI) component of Medicare.
Issued by: Centers for Medicare & Medicaid Services (CMS)
Issue Date: April 21, 2020
Over the past 8 years, the annual report of the Medicare Board of Trustees to Congress has included a comparison of growth trends for (i) beneficiary income, and (ii) beneficiary "out-of-pocket" costs for premiums and cost-sharing liabilities under the Supplementary Medical Insurance (SMI) component of Medicare. This comparison provides an important and informative illustration of the adverse consequences for Medicare beneficiaries if SMI costs continue to increase at a significantly faster rate than beneficiaries' incomes for a sustained period. This memorandum provides additional information on the purpose and limitations of the comparison.
HHS is committed to making its websites and documents accessible to the widest possible audience, including individuals with disabilities. We are in the process of retroactively making some documents accessible. If you need assistance accessing an accessible version of this document, please reach out to the guidance@hhs.gov.
DISCLAIMER: The contents of this database lack the force and effect of law, except as authorized by law (including Medicare Advantage Rate Announcements and Advance Notices) or as specifically incorporated into a contract. The Department may not cite, use, or rely on any guidance that is not posted on the guidance repository, except to establish historical facts.