Retired Teachers Chapter News

City pays Medicare Part B refunds; city will pay means-tested surcharges

Oct 1, 2009 4:27 PM

The city has mailed most of the 2008 reimbursement Medicare Part B refunds to our members and their spouses or domestic partners. The refunds are for $96.40 per month or $1,156.80 if you paid for the entire year.

If you did not receive your basic refund by Sept. 15, write to: City of New York, Office of Labor Relations Health Benefits Program, 40 Rector St., 3rd Floor, New York, NY 10006, Attn: Medicare Reimbursement Unit.

In 2007, the Bush administration began “means testing” (which is income-based) for Medicare Part B beneficiaries. This required some of our members to pay a higher amount known as the “IRMAA” — Income Related Monthly Adjustment Amount. This “means testing” will continue in 2009 and affects those members who paid more than the $96.40 monthly Medicare Part B premium in 2008.

The city does not know who paid the “IRMAA” surcharges as income information was provided by the IRS to Medicare. Therefore, a process was created last year for the city to reimburse those members who were affected by this payment. This year, the city will again include instructions for members to file for the “IRMAA” refund in the Medicare Part B refund check mailing.

Members should complete the notification to the city immediately. Due to the complex nature of these “IRMAA” refunds, it is a manual process and therefore will take several months for these refund checks to be issued. Members can expect the “IRMAA” refunds in February.

Members who file for the “IRMAA” refund should send the information to the city via regular mail as certified mail may delay the process. As always, members are advised to keep copies of all information sent to the city regarding this refund.

If you have questions, you can contact the UFT at the Retiree Health number, 1-212-598-7726.