The Nation - News from July 16, 1985

A House panel approved legislation that will require newly hired employees of state and local governments to come under Medicare coverage beginning next year, a decision that would bring in an estimated $500 million in payroll taxes over three years. The House health subcommittee also agreed to establish a new Medicare premium formula that will require the wealthy and middle-income elderly to pay more for medical insurance than lower-income elderly. Both changes came as the panel drafted a Medicare bill that trims growth in the health insurance program.