Medicare-Hospital Insurance Grants

What is the aim of the Medicare-Hospital Insurance Grants?

To provide hospital insurance protection for covered services to persons age 65 or above, to certain disabled persons and to individuals with chronic renal disease.

Who is Eligible to Apply for the Medicare-Hospital Insurance Grants?

Persons age 65 or over and certain disabled persons are eligible for hospital insurance protection. Nearly everyone who reached 65 before 1968 is eligible for hospital insurance, including people not eligible for cash Social Security benefits.

A person reaching age 65 in 1968 or after, who is not eligible for cash benefits, needs some work credit to qualify for hospital insurance benefits. The amount of work credit needed depends on age. Hospital insurance (Medicare Part A) is also available to persons, age 65 or over, not otherwise eligible through payment of a monthly premium which is currently $461.

A reduced Part A premium of $254 per month in 2010 is available to persons with 30 or more quarters paid into the social security system, as well as to their spouse, surviving spouse or divorced spouse. The reduction in Part A premium payments would also apply to the surviving spouse, or divorced spouse of an individual who had at least 30 quarters of coverage under the social security system.

Federal employees began contributing toward Medicare hospital insurance coverage beginning January 1983. Employees who worked prior to 1983 and who were employed during January 1983 can receive credit toward establishing Medicare eligibility, if necessary, for prior non-contributory quarters of Federal employment. State and local government employees not already in Social Security-covered positions and hired on or after April 1, 1986 also contribute toward Medicare hospital insurance coverage. Although States may request agreements to cover individuals employed prior to April 1, 1986, no credit is given toward establishing Medicare entitlement for prior employment. Persons under age 65, who have been entitled for at least 24 months to Social Security disability benefits, or for 29 consecutive months to railroad retirement benefits based on disability, are eligible for hospital insurance benefits.

How to Apply for the Medicare-Hospital Insurance Grants?

Telephone or visit the local Social Security Office. Individuals entitled to Social Security or railroad retirement are enrolled without application.

How much is the Medicare-Hospital Insurance Grants?

Benefits may be paid based on the prospective payment amount or the reasonable costs of covered inpatient hospital services and based on the reasonable costs of covered post-hospital extended care services which are incurred during a benefit period. For benefit periods beginning in calendar year 2010 the beneficiary is responsible for $1,100 inpatient hospital deductible, a $275 per day coinsurance amount for 61 through 90 days of inpatient hospital care, a $550 per day coinsurance amount for inpatient hospital care during the 60 lifetime reserve days, and a $137.50 per day coinsurance amount for days 21 through 100 of care in a skilled nursing facility. Home health services are paid in full.

Where to Apply for Medicare-Hospital Insurance Grants?

Headquarters Office
Rob Ludwig, 7500 Security Boulevard, Baltimore, Maryland 21244
Phone: (410) 786-5407
Web Site Address: or

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