Bill > S4657

Introduced Session

This bill modifies reimbursements paid under the School Employees' Health Benefits Program (SEHBP) for premium charges under Part B and Part D of the federal Medicare program. Medicare Part B is part of Traditional Medicare, which provides hospital insurance (Part A) and medical insurance (Part B), or coverage for outpatient medical services, to beneficiaries. Medicare Part D adds optional prescription drug benefits coverage to Traditional Medicare. The bill eliminates reimbursements for income-related monthly adjustment amounts (IRMAA), or income-based surcharges, assessed to federal Medicare beneficiaries beyond Medicare Part B and Part D premiums whose reported income meets certain criteria. By law, the State pays all or a portion of reimbursement costs for Medicare premiums for qualified retirees who receive healthcare coverage in retirement from the SEHBP. The Governor's Fiscal Year 2026 budget recommendations include enactment of legislation to eliminate income-related monthly adjustment amount (IRMAA) reimbursements for premium charges under Part B and Part D of the federal Medicare program under the SEHBP. The Department of the Treasury estimates that this bill will increase revenue for Fiscal Year 2026 by $35 million.

Committee Categories

Gordon Johnson (D)*, 

Withdrawn from Consideration (on 06/26/2025)

Official Document