Enrolling in Medicare | | 40 Quarters of Coverage | | Fewer Than 40 Quarters | | CalSTRS Program | | Reimbursements
Paying Medicare Premiums and Peralta's Reimbursement Process
Paying Medicare Premiums
Everyone enrolled in Medicare Parts A and B will have some premium to pay which will be reimbursed by the Peralta District.
If you are eligible for free Medicare A or if your Medicare A premium is paid by Cal STRS, you can have your Medicare B premium deducted from your CalSTRS pension check, or your Social Security Check (if you are receiving one). To arrange for the deduction, contact the agency and ask them to enroll you in their Medicare Premium Deduction Program. (Note: If you are applying for the CalSTRS Medicare Premium Payment Program, you can use the same application to direct STRS to deduct your Medicare B premium.) CalPERS does not offer this service.
You can also pay Medicare directly on a quarterly basis by credit card, check, or by an automatic bank transfer. This will be the default option if you do not arrange a Medicare Premium deduction with STRS or Social Security.
If you are not eligible for free Medicare A, you will be billed on a monthly basis for your Medicare Part A and Part B premiums by the Centers for Medicare and Medicaid Services (Medicare's billing agent). You can pay this bill each month by credit card, check, or by an automatic bank transfer.
Getting Reimbursed for Premiums That You Pay
The Peralta District will reimburse you for any premiums that you have to pay for Medicare Parts A and B including any penalty payments. To get reimbursed you must submit documentation to the District's agent, Pension Dynamics. Reimbursement is currently done quarterly but beginning in 2012 will be done monthly. It is done by direct deposit to any account that you specify (details below).
If you are having your Medicare premiums deducted from your CalSTRS pension or Social Security check it suffices to submit to Pension Dynamics a copy each year of your January check stub showing the amount deducted from your check for Medicare. You may also submit a copy of the Social Security Statement issued each December by the Social Security Administration which announces your annual premium for the following year. (If you have just signed up for Medicare, you should submit a copy of the first check stub that shows the amount of the Medicare deduction.) This must be done on an annual basis because the Medicare premiums usually change every calendar year. You should black out any personal information that may appear on the stub/announcement (e.g., your social security number). The copy of your documentation must be accompanied by a completed copy of a form that you can download from the District's benefits web site. (Note: the title of the download is "Medicare A & B Premium Claim Form.")
If you are paying your Medicare premiums directly to Medicare you must submit copies of the statements you receive each month (if you are paying for both A and B) or each quarter (if you have free Part A and only pay for Part B) showing the amount you are paying. Monthly statements can be submitted each month starting in 2012. For example, you will be billed by the Centers for Medicare and Medicaid Services for January at the beginning of December, for February at the beginning of January, for March at the beginning of February, etc. Once you have each monthly statement, you can submit a copy to Pension Dynamics together with the Medicare A & B Premium Claim Form. You will receive reimbursement at the beginning of the following month. (Note: Be sure to complete the stub on the statement before making a copy, and be sure to black out any personal information, e.g., your social security number or credit card number.)
If you are being billed quarterly (because you are only paying for Medicare Part B) you must submit a copy of the quarterly statement with the Premium Claim Form. You will still be reimbursed once a month for three months even though you have paid for the entire three month period. If the quarter includes a new year, you will need to submit a separate Premium Claim Form for the parts of the quarter in each of the two years. For example, if the quarter spans December-February, you will need to submit a copy of the statement with a Reimbursement Claim Form for December and then a new form for the months of January and February. If you have any questions about this, you can contact Pension Dynamics at 925-956-0514.
The District will reimburse you by direct deposit to the bank account of your choice. You must submit a form (one-time only) providing the necessary information to allow electronic transfer to your bank account. The form is available for download from the District's benefits web site. (Note: the title of the download is "Direct Deposit Form.")
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