Governor and Legislators Impose Medicare Premium Costs on NYSHIP Enrollees

The New York State Legislature has mandated that the cost of reimbursing Medicare-primary enrollees for their Part B premium costs be included as a component cost of New York State Health Insurance Plan (NYSHIP) premiums.

Under the plan, Medicare Part B premiums paid by NYSHIP enrollees will still be reimbursed by their former employers, but this additional cost to the employers will increase the cost of the program which all NYSHIP enrollees must bear.  The immediate result will be an estimated increase in NYSHIP yearly premiums by $38.28 for those with individual coverage and $95.28 for those with family coverage. Indications are that deductions will be imposed back to April 1, 2010.

The action was taken on June 7, 2010 as a part of a temporary budget extender.

Then, both the Assembly and Senate have accepted a permanent amendment to Section 167-a of the Civil Service law in the Public Protection and General Government “language” bill (A.9706-C/S.6606-B, Part U) expected as part of the final State Budget for the 2010-2011 fiscal year.