What's happening
This bill expands reimbursement for Medicare charges to include additional costs and clarifies covered health benefit plan components for New York public employees.
Why it matters
Expands reimbursement beyond just Medicare premiums to include any additional charges. (such as surcharges or late enrollment penalties), potentially reducing more out-of-pocket costs for eligible public employees and retirees.
Clarifies and broadens what is included under the "health benefit plan". for New York public employees, explicitly stating that prescription drugs, medications, hospitalization, surgical, and medical insurance are all covered components, which may ensure more comprehensive coverage.
Mandates that government employers and associated organizations adjust their contributions. to fully cover these expanded reimbursements, which could affect public budgets and negotiations between employers and employee unions.
Ensures consistent and possibly increased state and quasi-public employer responsibility. for healthcare costs, reinforcing state obligations to maintain a certain level of benefits for employees and retirees.
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Who cares
Headline styles
Cover All Medicare Costs
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Reported and committed to finance
- Referred to civil service and pensions
- Reported and committed to finance
- Referred to civil service and pensions
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Expand Medicare Reimbursements
In Assembly Committee · Ways And Means · Sponsor Peter Abbate
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2050
2019-2020 Regular Sessions
IN SENATE
January 22, 2019
Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions
AN ACT to amend the civil service law, in relation to reimbursement for medicare charges
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 167-a of the civil service law, as amended by section 1 of part I of chapter 55 of the laws of 2012, is amended to read as follows:
§ 167-a. Reimbursement for medicare [premium] charges. Upon exclusion from the coverage of the health benefit plan of supplementary medical insurance benefits for which an active or retired employee or a dependent covered by the health benefit plan is or would be eligible under the federal old-age, survivors and disability insurance program, an amount equal to the premium charge and any other additional charges for such supplementary medical insurance benefits for such active or retired employee and his or her dependents, if any, shall be paid monthly or at other intervals to such active or retired employee from the health insurance fund. Where appropriate, such amount may be deducted from contributions payable by the employee or retired employee; or where appropriate in the case of a retired employee receiving a retirement allowance, such amount may be included with payments of his or her retirement allowance. All state employer, employee, retired employee and dependent contributions to the health insurance fund, including contributions from public authorities, public benefit corporations or other quasi-public organizations of the state eligible for participation in the health benefit plan as authorized by subdivision two of section one hundred sixty-three of this article, shall be adjusted as necessary to cover the cost of reimbursing federal old-age, survivors and disability insurance program premium charges under this section. This cost shall be included in the calculation of premium or subscription charges for
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07912-01-9
S. 2050 2
health coverage provided to employees and retired employees of the state, public authorities, public benefit corporations or other quasipublic organizations of the state; provided, however, the state, public authorities, public benefit corporations or other quasi-public organizations of the state shall remain obligated to pay no less than its share of such increased cost consistent with its share of premium or subscription charges provided for by this article. All other employer contributions to the health insurance fund shall be adjusted as necessary to provide for such payments. For purposes of this section, the term "health benefit plan of supplementary medical insurance benefits" shall mean the health benefit plan prescribed by section one hundred sixty-one of this article and shall include prescription drugs and medications, group hospitalization, surgical and medical insurance provided pursuant to such section.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the civil service law, in relation to reimbursement for medicare charges
Purpose or general idea of bill
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 charges and any other additional 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.
Existing law
Currently, the State reimburses retirees for their Medicare premium charges but not the Income Related Monthly Adjustment Amount for Medi- care Part D.
Justification
When public employees retire and hit the age of 65, they are automat- ically enrolled in Medicare, including Medicare Part B (outpatient medical services and supplies) and Medicare Part D (prescription medica- tion). For high-income retirees, this automatic enrollment then requires them to make three separate payments: a premium for Medicare Part B, a premium for Medicare Part D, and an additional amount known as an Income Related Monthly Adjustment Amount (IRMAA) for both parts B and D. The state currently reimburses these high-income retirees for IRMAA payments for Part B, medical expenses, but not for Part D, prescription drugs. This bill clarifies that the original intent of the statute (Civil Service Law § 167-a) was to reimburse for both.
Prior court decisions support the interpretation that the State needs to be picking up the tab. In the Appellate Division, Third Department, in Matter of United University Professions v. New York, 36 A.D.3d 297, 302-303 (3rd Dept; 2006), for example, the Court determined that the fact that New York State is not reimbursing for the Medicare Part B IRMAA premium is "arbitrary and capricious," and the State quickly took heed and began to reimburse for Part B. This bill extends this reimbursement scheme to Part D, clarifying that, based on both legisla- tive history and prior court decisions, State retirees should be held harmless for any premium or other charges paid due to enrollment in both of these parts of Medicare. New York should be taking care of retirees that have dedicated their entire lives to service for the state. This bill accomplishes that by ensuring that public employees do not have to pay additional premiums for their automatic enrollment in Medicare.
Prior legislative history
2018: S.1612 - Reported to Finance 2017: S.1612 - Passed the Senate 2016: S.1995 - Passed the Senate 2015: S.1995 - Passed the Senate 2014: S.6664 - Reported to Finance
Fiscal implications
To be determined
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.