210-14
MEDICARE PREMIUM REIMBURSEMENT POLICY

Department: Finance

Effective Date:    11/04/91

Supersedes:    

Staff Contact:    Dan Clements

Approved by:    Earl Clymer

1.0 PURPOSE:

To establish a policy and procedure for LEOFF I and Firemen's Pension Retirees reimbursement of Medicare, part B premiums.

2.0 ORGANIZATIONS AFFECTED:

Fire and Police Department

3.0 REFERENCES:

RCW 41.26.150 & 41.18

4.0 POLICY:

LEOFF I - RCW 41.26.150 states that the employer shall pay for such active or retired member the necessary medical services not payable from some other source. It further states that medical services payable under this section will be reduced by any amount received or eligible to be received by the member under any other source, such as Medicare.

Firemen's Pension - Pursuant to RCW 41.18, Medical coverage under the prior act is limited to treatment of service related disabilities only. Prior Act retirees are not required by law to apply for and utilize Medicare benefits. The City recognizes that a potential savings exists when members do have Medicare coverage.

5.0 PROCEDURE:

5.1    Prior to the 65th birthday, the city will send a letter to the retiree requesting they enroll in the Medicare Plan, Part B.

5.2    The city will reimburse the retiree for the base premium upon completing the proper claim form. A 10% penalty is added to the base premium by Medicare for every year after reaching age 65 that the retiree does not sign up for Medicare; the city will not reimburse the retiree for this penalty, only the base premium.

5.3    Pursuant to RCW 41.26.150(2), any medical claims submitted to the LEOFF board for reimbursement, that are eligible to be paid by some other source, will be reimbursed only to the extent not eligible by other sources. Failure to apply for coverage if otherwise eligible under the provisions of Pubic Law 89-97 shall not be deemed a refusal of payment of benefits.

5.4    All disability-related Firemen's Pension claims will be paid regardless of whether or not Medicare is utilized, although it is recommended that Prior Act retirees apply for and utilize Medicare benefits due to the potential savings to the Firemen's Pension Fund.