How would retirees that only have Medicare Part B be impacted by the Governors Budget?
For retirees with only Medicare Part B, their costs would continue to be rated with the Medicare pool but they would be subject to the same reductions in subsidy as the non-Medicare retirees. That is, if the individual retired prior to July 1, 2009, their subsidy would be reduced 25% in Plan Year 2010 and would be reduced an additional 25% in Plan Year 2011. If the individual retired on or after July 1, 2009, they would receive no State subsidy. PEBP considers any retiree age 65 or older as having Medicare Part B (i.e. PEBP assumes all individuals who are age 65 or older purchase Medicare Part B).
