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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2000
SPONSOR: Abbate 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 their additional Medicare charges, such as the Medicare
Part D Income Related Monthly Adjustment Amount.
JUSTIFICATION:
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 Part
D is the prescription medication component of the Medicare program.
Medicare enrollees pay separate premiums for Part B and Part D enroll-
ment.
Enrollees who are considered to be high income must pay an Income
Related Monthly Adjustment Amount (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 1RMAA. That determination is contrary to both
section 167-a's legislative history and the Appellate Division's deci-
sion in Matter of United University Professions, supra. This bill amends
section 167-a to reaffirm the Legislature's intent to hold State reti-
rees harmless for any premium or other charges paid due to enrollment in
Medicare.
PRIOR LEGISLATIVE HISTORY:
2016: A.4190 - Referred to Governmental Employees
2015: A.4190 - Reported to Ways and Means
2014: A.6369 - Reported to Ways and Means
FISCAL IMPLICATIONS:
To be determined
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
2000
2017-2018 Regular Sessions
IN ASSEMBLY
January 17, 2017
___________
Introduced by M. of A. ABBATE -- read once and referred to the Committee
on Governmental Employees
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:
1 Section 1. Section 167-a of the civil service law, as amended by
2 section 1 of part I of chapter 55 of the laws of 2012, is amended to
3 read as follows:
4 § 167-a. Reimbursement for medicare [premium] charges. Upon exclusion
5 from the coverage of the health benefit plan of supplementary medical
6 insurance benefits for which an active or retired employee or a depend-
7 ent covered by the health benefit plan is or would be eligible under the
8 federal old-age, survivors and disability insurance program, an amount
9 equal to the premium charge and any other additional charges for such
10 supplementary medical insurance benefits for such active or retired
11 employee and his or her dependents, if any, shall be paid monthly or at
12 other intervals to such active or retired employee from the health
13 insurance fund. Where appropriate, such amount may be deducted from
14 contributions payable by the employee or retired employee; or where
15 appropriate in the case of a retired employee receiving a retirement
16 allowance, such amount may be included with payments of his or her
17 retirement allowance. All state employer, employee, retired employee and
18 dependent contributions to the health insurance fund, including contrib-
19 utions from public authorities, public benefit corporations or other
20 quasi-public organizations of the state eligible for participation in
21 the health benefit plan as authorized by subdivision two of section one
22 hundred sixty-three of this article, shall be adjusted as necessary to
23 cover the cost of reimbursing federal old-age, survivors and disability
24 insurance program premium charges under this section. This cost shall be
25 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.
LBD06036-01-7
A. 2000 2
1 health coverage provided to employees and retired employees of the
2 state, public authorities, public benefit corporations or other quasi-
3 public organizations of the state; provided, however, the state, public
4 authorities, public benefit corporations or other quasi-public organiza-
5 tions of the state shall remain obligated to pay no less than its share
6 of such increased cost consistent with its share of premium or
7 subscription charges provided for by this article. All other employer
8 contributions to the health insurance fund shall be adjusted as neces-
9 sary to provide for such payments. For purposes of this section, the
10 term "health benefit plan of supplementary medical insurance benefits"
11 shall mean the health benefit plan prescribed by section one hundred
12 sixty-one of this article and shall include prescription drugs and medi-
13 cations, group hospitalization, surgical and medical insurance provided
14 pursuant to such section.
15 § 2. This act shall take effect immediately.
