Why do state Medicare retiree contributions increase so much?
There are three basic changes to the Medicare retiree rates. First is the increase in overall cost. Second is the reduction in State subsidy. And third is a change in how Medicare Part D is treated. In the past, the Medicare D subsidy was “passed through” entirely to the Medicare retirees. This policy was not changed when the rates were reduced in PY 2009 as a result of SB 544 (2007) explained above. Effective November 1, 2009, the Medicare D subsidy will be shared between the Plan and the retiree in the same manner as the cost of prescription drugs. Why did the Board decide to cut some benefits while still reducing the percentage of cost that the State subsidy pays for? The Board began this process by establishing a general approach to meeting the budget target. The approach to meet approximately half of the target through cost shifting and half through reductions in benefits was determined in August. While there were innumerable ways that this could have been done, this seemed the mo
Related Questions
- The Centers for Medicare & Medicaid Services (CMS) Change Request from May 2, 2008 seems to state that only UB-04 claim form billers must include NDC information. Is that correct?
- Do the retiree contributions apply to retirees who are eligible, or who become eligible, for Medicare?
- Why do state Medicare retiree contributions increase so much?
