Relates to the reimbursement for medicare charges

3 Co-sponsors

• Neil D. Breslin
• Thomas Croci
• Kathleen A. Marchione

Title of bill

An act to amend the civil service law, in relation to reimbursement for medicare charges

Purpose

This bill reaffirms the Legislature's intent to hold State retirees harmless for any premium or other charges paid due to enrollment in Medicare.

Summary of provisions

Section one of the bill amends section 167-a of the Civil Service Law to clarify that reimbursement shall be for both Medicare premium charges and other Medicare charges. Currently, these other Medicare charges are the Income Related Monthly Adjustment Amount charges for Medicare Parts B and D. Because Medicare is statutory, the Federal government could add more new charges for Medicare. Any new charges would be other additional charges for which reimbursement would be required.

Section two of the bill that this act shall take effect immediately.

Justification

Medicare Part D is the prescription medication component of the Medicare program. Retired State employees are required to enroll in Medicare at age 65, which is Medicare's age for eligibility. Upon enrollment in Medicare Part B, enrollment in a Medicare Part D plan is automatic. Medicare enrollees pay separate premiums for Part B and Part D enrollment. Those enrollees who are considered to be high income must pay an Income Related Monthly Adjustment Amount, which is known as "IRMAA," in addition to their premium.

Even though the Appellate Division, Third Department, in MATTER OF UNITED UNIVERSITY PROFESSIONS V. NEW YORK , 36 A.D.3d 297, 302-303 (3rd Dept; 2006), held that "(b)ased on the plain language of Civil Service Law § 167-a, the legislative history of Civil Service Law article 11 and respondents' correct long-standing interpretation of that statutory scheme," the State's interpretation that section 167-a does not include reimbursement for Medicare Part B IRMAA was arbitrary and capricious, the State has determined that it is not required to reimburse retirees for Medicare Part D IRMAA. That determination is contrary to section 167-a's Legislative history and the Appellate Division's decision in MATTER OF UNITED UNIVERSITY PROFESSIONS, SUPRA .ct. This bill amends section 167-a to reaffirm the Legislature's intent to hold State retirees harmless for any premium or other charges paid due to enrollment in Medicare.

Legislative history

2015: S.1995 - Passed the Senate 2014: S.6664 - Reported to Finance

Fiscal implications

The cost of Medicare Part D IRMAA is 30% of the cost of Part B IRMAA. In 2017-18, Medicare Part D IRMAA would cost would be $2.2 million.

Effective date

This act shall take effect immediately.