senate Bill S6664

2013-2014 Legislative Session

Relates to the reimbursement for medicare charges

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Mar 03, 2014 reported and committed to finance
Feb 25, 2014 referred to civil service and pensions

Votes

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Mar 3, 2014 - Civil Service and Pensions committee Vote

S6664
10
0
committee
10
Aye
0
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
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Civil Service and Pensions Committee Vote: Mar 3, 2014

S6664 - Bill Details

See Assembly Version of this Bill:
A9369
Current Committee:
Law Section:
Civil Service Law
Laws Affected:
Amd §167-a, Civ Serv L

S6664 - Bill Texts

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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.

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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

PURPOSE:

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.

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, 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.

LEGISLATIVE HISTORY:

New Bill

FISCAL IMPLICATIONS:


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.

EFFECTIVE DATE:

This act shall take effect immediately.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6664

                            I N  S E N A T E

                            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,  public

 EXPLANATION--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.

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