Medicare is a nationwide federally administered health insurance program for eligible individuals, usually age 65 and older. Medicare has three parts: Medicare Part A covers inpatient hospital costs; Medicare Part B covers outpatient medical and physician costs; and Medicare Part D covers prescription drug costs.
The CalSTRS Medicare Premium Payment Program was established by California legislation in 2000 and can be found in the Teachers’ Retirement Law (Section 25940). The MPPP is funded in part by employer contributions.
Under the MPPP, CalSTRS pays Medicare Part A hospital insurance premiums for eligible retired members. Premium costs vary and are not determined by CalSTRS.
The Medicare Premium Deduction Service is available to CalSTRS members currently enrolled in Medicare. The MPDS allows members to deduct their Medicare Part B premiums directly from their monthly benefit. This service is provided as a courtesy and there is no fee.