Income-Related Monthly Medicare Adjustment Amount
As you may know, CalPERS automatically reimburses the basic Medicare Part B monthly premium (which will be $135.50 for 2019) for its retirees who are in Medicare. What you may not know is that if you are subject to the Income-Related Monthly Medicare Adjustment Amount (the IRMAA) because your annual total adjusted income exceeds certain limits, you may be eligible to have part or all of the IRMAA reimbursed by CalPERS as well.
The amount of additional reimbursement will depend on how much excess money is available from the monthly health insurance contribution made by the CSU for CSU retirees. This will vary depending on how many of your dependents, if any, are enrolled in CalPERS basic or supplemental health plans.
If you think you may be eligible for reimbursement for all or part of your IRMAA, you have to notify CalPERS in writing. Include in your letter to CalPERS a copy of your annual letter from the Social Security Administration describing your benefits for the coming calendar year. This will include the amount of your IRMAA. (The letter for 2019 was sent to Social Security recipients in late November 2018.)
Mail your request to
CalPERS Member Account Management Division
Attention: Medicare Administration
P.O. Box 942715
Sacramento, CA 94229-2715
You also can submit the necessary information online using your My|CalPERS account.
Within a few weeks you should receive a response from CalPERS, which indicates the amount of additional Part B reimbursement you will receive for 2019. Note that it can take from 30 to 90 days before the additional reimbursement begins to appear in your retirement check or deposit. The reimbursement will cover the entire year, so you may also see a lump sum payment for the prior months.