Participation is voluntary. You must decide what is best for your own situation. Some retired educators may choose to retain their current arrangements for health care coverage.

Who Is Eligible to Have CalSTRS Pay Medicare Part A Premiums?

You are eligible if you:

• retired prior to January 1, 2001 and are receiving a monthly CalSTRS allowance
• are not eligible for premium-free Medicare Part A (hospitalization)
• have enrolled in both Medicare Parts A and B at age 65

CalSTRS can pay Medicare premiums only for CalSTRS members. This benefit is not available to members' spouses.

Retiring on or after January 1, 2001?

The CalSTRS Medicare Benefits Program is available to eligible members of the Defined Benefit Program who retire on or after January 1, 2001, and prior to July 1, 2012. To be eligible to have CalSTRS pay your Medicare Part A premiums, you must meet all of the following requirements:

1. Not eligible for premium-free Medicare Part A,
2. Enrolled in Medicare Parts A and B, at age 65, and
3. Retired from a school district that either:

• Has completed a Medicare division to permit certificated employees to be covered by the Medicare payroll tax prior to January 1, 2001; or
• Has completed or is conducting the Medicare division after January 1, 2001, and if the member was less than 58 years of age at the time of the election, the individual member must have elected to participate in the Medicare payroll tax.

Who Pays What?

If you meet the eligibility requirements listed above, CalSTRS will pay your Medicare Part A premium. If CalSTRS will be paying your Part A premiums, federal regulations require you to enroll in Part B to receive Part A.

Therefore, you will pay the Medicare Part B (doctor visits coverage) premium. In 2008, the Part B monthly premium is $96.40 per month. Premiums may be higher based on your income.

Already Paying Premiums?

A person can earn up to four Medicare "credits" for each year he or she pays the Medicare payroll tax. If a person, or his or her spouse, hasn't paid into Medicare long enough to earn 40 Medicare credits and qualify for free Medicare Part A, he or she can purchase Part A coverage, which in 2008 is $423 per month, and Part B is $96.40 per month.

Therefore, you may have been paying premiums for Medicare Part A or Part B on your own. Please continue to make those payments until you no longer receive premium notices from Medicare or until you see the Medicare Part B deduction of $96.40 on your CalSTRS retirement allowance warrant stub or direct deposit notice. If you and CalSTRS happen to make the same payment, for instance in the first month of coverage, Medicare will reimburse you.

What Must I Do?

1. Enroll in Medicare Part A and Part B. Call Social Security at 1-800-772-1213 or visit your local Social Security office.

   Note: If the Social Security representative tells you that you are not qualified, eligible or do not have enough credits to receive Medicare Part A premium-free, tell the representative that you would like to purchase Medicare Parts A and B. Medicare will then send you a Notice of Medicare Premium Payment Due for Medicare Parts A and B (Medicare bill).

2. Your 1st Notice of Medicare Premium Due (Medicare bill) should arrive the month before your Medicare coverage begins. If you want CalSTRS to pay your Medicare Part A and/or deduct your Medicare Part B from you retirement benefit, complete the attached CalSTRS Medicare Payment Authorization form. Mail the completed form and a photocopy of your Medicare bill to CalSTRS in the enclosed envelope. Do not pay this bill.
   
   
3. If you are eligible for the Medicare Premium Payment Program, CalSTRS will send you a letter to confirm that we have received your documents. We will explain when CalSTRS will begin paying your Medicare Part A and/or when to expect your Medicare Part B to be deducted from your monthly benefit check. If you are not eligible, CalSTRS will notify you.

Note: Because of normal processing time, receiving a SECOND Medicare bill with past due premiums is not unusual. Please contact CalSTRS only if you receive a DELINQUENT Medicare bill.

About the CalSTRS Medicare Authorization Form

The CalSTRS Medicare Authorization form does not enroll you in Medicare, but is essential for CalSTRS processing purposes. Without this signed form, CalSTRS cannot pay your Part A premium and surcharges or deduct the Part B premium from your retirement allowance and pay any Part B surcharges.

Please return the form to CalSTRS at least eight weeks before your Medicare coverage begins to ensure that CalSTRS begins paying your Part A premiums and, if applicable, CalSTRS will deduct the Part B premium from your allowance.

For CalSTRS Information

For questions about CalSTRS payment of Medicare Part A premiums, please call the CalSTRS Member Services at 1-800-228-5453.