This bill amends the School Employees Health Benefits Program (SEHBP) to modify the reimbursement structure for certain premium charges under the federal Medicare program. Specifically, it establishes that the program will reimburse qualified retirees for premium charges under Medicare Part B and Part D, but will exclude reimbursements for any income-related monthly adjustment amounts (IRMAA) that retirees and their spouses are required to pay in addition to the standard premiums. This change will take effect for reimbursements paid on or after January 1, 2025, and applies to all qualified retirees, regardless of their retirement date.

Additionally, the bill clarifies that the State will cover the costs of premium charges and Medicare reimbursements for qualified retirees and their dependents. It also specifies that employees who become members of the Teachers' Pension and Annuity Fund after the effective date of P.L.2010, c.2 will contribute 1.5% of their monthly retirement allowance towards health benefits coverage, with the State covering the remaining costs. The fiscal implications of this bill are significant, as it is projected to increase revenue for Fiscal Year 2026 by $35 million by eliminating IRMAA reimbursements.

Statutes affected:
Introduced: 52:14-17.32