Change in retiree eligibility for Medicare Part B reimbursement

Each year, U-M benefit programs are evaluated to respond to the challenges of rising costs and to protect the quality of overall benefit packages.

After careful review, the University has changed eligibility practices for reimbursing retirees and surviving spouses a portion of the amount that the Social Security Administration charges individuals for Medicare Part B coverage. The effective date of this change is Jan. 1, 2006. Individual impact depends upon the date of retirement.

Employees who retired before 2006 and their surviving spouses will continue to receive quarterly reimbursement checks at the 2005 rate of $48.05 per month per person, and the rate will not be increased annually. Those employees whose first day of retirement occurs after Jan. 1, 2006, will not be eligible for the Medicare Part B reimbursement program.

A transitional practice has been implemented, however, for first-quarter-2006 retirees. When the first day of retirement is after Jan. 1, 2006, and on or before March 31 2006, and the retiree or spouse are Medicare-eligible at the time of retirement, they will receive quarterly Medicare Part B reimbursement through the end of the year. At the close of 2006, their eligibility for this program will end and they no longer will receive Medicare Part B reimbursement payments.

Regardless of eligibility for reimbursement from the University, retirees and surviving spouses should continue enrollment in Medicare Part B because U-M medical plans are designed to work in conjunction with Medicare for comprehensive coverage.

The University maintains its strong commitment to offer faculty, staff and retirees high-quality, cost-effective medical insurance plans and the ability to choose among a variety of plans, and annual review with periodic adjustments to help achieve the long-term goal of protecting the overall benefits packages.

For questions about Medicare Part B reimbursement, contact the HR/Payroll Service Center at 5-2000 (Ann Arbor campus phones), (734) 615-2000 (local) or (866) 647-7657 (toll-free, long-distance).

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