Amends supplementary medical insurance benefits reimbursement amount to include additional charges other than the premium charge; defines health benefit plan of supplementary medical insurance benefits.
BILL NUMBER:S6664 REVISED MEMO 03/03/2014
TITLE OF BILL: An act to amend the civil service law, in relation to reimbursement for medicare charges
This bill would to reaffirm 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.
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, 3 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 riot 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, supraThis 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.
The cost of Medicare Part D IRMAA is 30% of the cost of Part B IRMAA. In 2014-15, Medicare Part D IRMAA would cost $510,000 million. In 2017-18, Medicare Part D IRMAA cost would be $2.2 million.
This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 6664 IN SENATE February 25, 2014 ___________Introduced by Sen. GOLDEN -- 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 ASSEM- BLY, 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: S 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 depend- ent 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 contrib- utions 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 health coverage provided to employees and retired employees of the state, public authorities, public benefit corporations or other quasi- public organizations of the state; provided, however, the state, publicEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14148-02-4 S. 6664 2
authorities, public benefit corporations or other quasi-public organiza- tions 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 neces- sary 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 MEDI- CATIONS, GROUP HOSPITALIZATION, SURGICAL AND MEDICAL INSURANCE PROVIDED PURSUANT TO SUCH SECTION. S 2. This act shall take effect immediately.