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MEDICARE PART B PREMIUM REIMBURSEMENT

2017 MEDICARE PART B REIMBURSEMENTS

The County of Los Angeles reimburses members and/or their eligible dependents for their Medicare Part B premiums (standard rate only) on a tax-free basis, provided they meet the following eligibility requirements:

  • Enrolled in the LACERA-administered Medicare Supplement Plan – Anthem Blue Cross Plan III or a LACERA-administered Medicare Advantage Prescription Drug Plan (MA-PD) such as Cigna-HealthSpring Preferred with Rx (available in Maricopa County and Apache Junction, Pinal County, AZ), Kaiser Senior Advantage, United Healthcare Medicare Advantage, or SCAN.
  • Paying for their Medicare Part B premium themselves.
  • They are not being reimbursed for their Medicare Part B Premium by another agency, such as another employer or state.

The Centers for Medicare and Medicaid Services (CMS) announced that for 2017, the Part B premium amount for most Medicare beneficiaries will change to ($109.00) who are held “harmless.” There will not be a Cost of Living Allowance (COLA) to Social Security benefits, therefore, the hold harmless provision will apply to most individuals in 2017, according to CMS. Medicare beneficiaries not subject to the hold harmless provision will pay a slightly higher standard rate ($134.00 per month). Higher income Medicare enrollees who filed an individual (or married and filing separately) 2015 tax return showing a modified adjusted gross income greater than $85,000 (or $170,000 for a joint tax return) are responsible for a larger portion of the estimated total cost of Part B benefit coverage. Read more about Medicare Premium Amounts for Persons with Higher Income Levels.

Good news! On December 13, 2016, the Board of Supervisors approved the 2017 Medicare Part B Premium Reimbursement for eligible retirees and their dependents.

For members and eligible dependents who meet the above-stated eligibility requirements, the tables below indicate 2017 Part B reimbursement rates (standard rates). These reimbursement rates are effective January 1, 2017 (December 31, 2016, pay period) providing LACERA receives the SSA verification by January 15, 2017 and verifies the amount. If received after the deadline of January 15, 2017, the reimbursement will become effective on a time-forward basis from the date LACERA receives the SSA verification of the 2017 Part B premium amount.

2017 Part B Premium Standard Rate (Lower-cost Premium)
If you and your eligible dependent are: Your Maximum 2017 Part B Reimbursement (after verification)
  • Currently paying $104.90 in 2016 and verification is submitted (through direct payment or deduction), and
  • You are not paying a higher Medicare Part B premium due to an income of $85,000 or more (known as “means testing”)
  • $109.00 (single party)
    or
  • $218.00 (two parties)
2017 Part B Premium Standard Rate (Higher-cost Premium)
If you and your eligible dependent: Your Maximum 2017 Part B Reimbursement (after verification)
  • Will enroll in Part B for the first time in 2017, and
  • Are directly billed by Social Security for your Part B premiums, and
  • Do not receive Social Security benefits, and
  • Receive both Medicare and Medicaid,* and Medicaid pays your premiums, and
  • Your modified adjusted gross income reported to the IRS on your 2015 tax return was $85,000 or more
  • $134.00 (single party)
    or
  • $268.00 (two parties)

*In California, Medicaid is known as Medi-Cal.

You must provide verification of your 2017 Part B premium amount from the Social Security Administration (SSA) to LACERA. You may mail, fax or e-mail a copy of the SSA verification that includes your identifying information to LACERA. (See LACERA contact info below). We will validate the information and reimburse you the appropriate 2017 Part B amount. If we are unable to validate the 2017 Part B premium amount, LACERA may suspend the reimbursement until validation is completed. If it is determined that you are receiving the incorrect reimbursement, you are responsible for repaying any overpaid amount.

If you have already submitted the requested document no further action is necessary.

Who to Contact with Questions

  • LACERA Retiree Healthcare Division
  • Telephone: (800) 786-6464, Press 1, or (626) 564-6132.
  • Fax: (626) 564-6155 Email: healthcare@lacera.com, or sign-in to My LACERA at lacera.com

12/22/16