HomeMy WebLinkAbout210-14POLICY & PROCEDURE
Subject Index: Finance
MEDICARE PREMIUM REIMBURSEMENT POLICY Number: 210-14
Effective Date Supersedes Page Of Staff Contact Approved By
11/04/91 1 2 Dan Clements w
r
J ^,,i•. .
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.
Page 2
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.