Menendez has been the key Congressional champion of this policy for several years, providing the states hospitals with hundreds of millions in additional Medicare wage
000 for each payer and for geographic wage differences using the Medicare wage
index reweighted to 1.
Regarding the tax changes, starting in 2013, the new bill will increase the Medicare wage
tax by 0.
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.