We used the Medicare wage
index rescaled to 1.000 for all-payer totals in the 10 states to adjust for geographic variation in prices and DRG weights rescaled to 1.000 for our 10 states by payer to adjust for differences in case mix among states.
Regarding the tax changes, starting in 2013, the new bill will increase the Medicare wage
tax by 0.9% and impose a new 3.8% tax on investment income, including annuities, for high income taxpayers-individuals earning more than $200,000 and married couples filing jointly who earn $250,000 or more.
* The Medicare disproportionate percentage is within one standard deviation of the mean percentages of all hospitals in the geographic area used for Medicare wage
We believe that the Medicare Wage
Index and general overhead costs per day at the hospital level meet these criteria.
The Medicare wage
base will also increase for 1993 to $135,000 from the 1992 base of $130,200.
The elimination of the Medicare wage
base cap, effective in 1994, significantly increased the total tax associated with self-employment (SE) income.
For example, if, in 1993, an employee participating in a nonqualified deferred compensation plan had other wages at least equal to the applicable FICA and Medicare wage
bases for 1993, the inclusion in wages of an amount deferred would not have resulted in any additional FICA tax liability for that year.
Considering that the Medicare wage
base is no longer the same as the old age, survivors' and disability insurance (OASDI) wage basis, the calculation of Keogh compensation, especially for partners in integrated plans, can be very complicated.
* A 0.9% additional Medicare tax, which applies to Medicare wages
and self-employment income of $125,000 and up for some individuals and couples;