TO:                 Executive Board and Council Leaders

FROM:           Ken Brynien

DATE:            June 14, 2007

RE:                  Medicare Part B Refunds 

The Department of Civil Service has announced the schedule for refunds of the Medicare Part B component from premium rates that were charged to NYSHIP enrollees between January 1, 2006 and March 31, 2007.

Employees will receive refunds in the 7/19/07 Institution Payroll and the 7/25/07 Administration Payroll. Ten-month teachers who do not receive a paycheck during the summer will receive their refunds in their first paychecks in September when they have deductions for health insurance premiums. Retirees will receive refunds in their 7/31/07 pension checks.

These refunds reflect the removal of the Medicare Part B component from the rates that were charged to NYSHIP enrollees between January 1, 2006 and March 31, 2007. This retroactive adjustment of the premium rates is resulting in a refund for the majority of members including those enrolled in the Empire Plan during all or a portion of this period.  Members enrolled in HMOs that were less expensive than the Empire Plan will also receive a refund. The exact amount of the refund will vary from individual to individual, depending on which health insurance option(s) the member was enrolled in during this period and the type of coverage (individual or family).  

Members enrolled in HMOs that were more expensive than the Empire Plan (i.e., exceeded the cap on HMO premiums) actually paid less in premium than they should have.  Although the state had threatened to seek recoupment (refunds) of premium owed by HMO members who unknowingly underpaid biweekly deductions from January 1, 2006 through March 31, 2007, they reconsidered, and decided that they will not pursue these refunds.

If you have any questions please contact Health Benefits staff at 800-342-4306 or 518-785-1900 x283.