Subject:

Retirees Deserve Dignity: Oppose NY Budget Plan to Cut Medicare Part B Reimbursements

Dear Legislator,

As your constituent, I urge you to oppose a provision in the 2024-25 New York State Executive Budget that significantly alters the reimbursement of Medicare Part B premiums for retirees covered by the New York State Health Insurance Program (NYSHIP).

This proposal seeks to balance the budget on the backs of fixed-income retirees. The current proposal, found in Part S of the Public Protection and General Government Article VII Budget Bill (S.8305/A.8805), would eliminate the reimbursement of the Income Related Monthly Adjustment Amount (IRMAA) for certain retirees. This means that as the cost of Medicare Part B increases each year, retirees will have an additional out-of-pocket health care cost.

Retirees participating in NYSHIP are required by the state to enroll in Medicare Part B. Based on their income, some NYSHIP retirees are required to pay an additional income-related Part B premium called IRMAA, which has been reimbursed for the last decade.

The executive budget proposal would discontinue reimbursement for IRMAA for higher income state retirees. Specifically, the plan calls for a retroactive discontinuance of the IRMAA Medicare Part B reimbursement — back to January 1, 2024. The new burden will cost retirees, depending upon their adjusted gross income, anywhere from $694 to $4,164 annually.

In the past, similar language was proposed in the executive budget but was ultimately rejected by the Legislature. Our retired public servants, most of whom live on fixed incomes, simply do not have the ability to adjust to this new burden as they cannot simply go out and earn extra money. The retroactive nature of the proposal makes this even more troubling as no one could have planned for it.

When our retirees left public service, they did so with an understanding of what their benefits and their financial obligations would be. Changing those expectations to fix a budget shortfall is unfair. Accordingly, I ask that you once again advocate for the removal of any provisions that eliminate the reimbursement of the IRMAA.

Thank you for your consideration of this important matter. I respectfully ask that you bring up these issues with your conference and your leadership. I look forward to a reply to my email.

Sincerely,

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