Under section 278 of P.L. 97-248, federal employees are subject to the hospital insurance (HI) Medicare portion of the FICA tax beginning January 1, 1983. In return, such employees earn quarters of coverage for HI only entitlement purposes from Federal employment for wages paid after December 31, 1982, (FQC). In addition, under a transitional provision in the law, Federal employees in pay status during January 1983 may receive deemed quarters of coverage for their federal service prior to 1983. The earliest month for which FQC's may be used to establish ESRD Medicare entitlement is January 1983. However, the qualifying period may begin prior to January 1983. For a full explanation of policies resulting from section 278 of P.L. 97-248 refer to HI A00801.400 through HI A00801.450.