Participation in the CalSTRS Medicare Premium Payment Program (MPPP) is optional and based on your ability to qualify for the program. You must decide what is best for your own situation.

Requirements

The MPPP is available to eligible members of the Defined Benefit Program whose most recent retirement date is prior to July 1, 2012.

You’re eligible if your most recent retirement date is before January 1, 2001, and:

• You do not qualify for premium-free Medicare Part A.
• You’re enrolled in both Medicare Part A (hospitalization) and Part B (medical).

You’re eligible if your most recent retirement date is on or after January 1, 2001, but before July 1, 2012, and:

• You do not qualify for premium-free Medicare Part A.
• You’re enrolled in both Medicare Part A (hospitalization) and Part B (medical).
• You retired from an employer that has completed a Medicare Division election.

If you retired from an employer that has completed a Medicare Division election:

• If the Medicare Division election was completed after January 1, 2001, you must retire during or after the 10-day election period.
• If you were less than 58 years old during the 10-day election period, you must have voted “yes.”

CalSTRS can pay and deduct Medicare premiums for CalSTRS members only. Member spouses or beneficiaries are not eligible for the program.

Medicare Division

Employers conducted a Medicare Division election prior to 2012 that offered employees the option to pay the Medicare tax and enroll in the MPPP.

If you started CalSTRS-covered employment before April 1, 1986, you were not initially subject to the Medicare tax. If you switched employers after that date, or if your employer held a Medicare Division election and you voted “yes,” you began paying the Medicare tax. If you or your spouse paid the Medicare tax for 10 or more years, you most likely qualify for premium-free Medicare Part A on your own.

If you began receiving a disability allowance and continuously received it until age 65 or older, you may be eligible for the MPPP.

For questions regarding eligibility, contact us.

CalSTRS will also pay any applicable surcharges (penalties for late enrollment in Medicare) assessed by Medicare that apply to Parts A and B if the retired member is over age 65, enrolled in Medicare Part A and B on July 1, 2001, and CalSTRS pays his or her Medicare Part A premium. CalSTRS will not pay Medicare Part B surcharges if the member is receiving premium-free Medicare Part A.