This bill amends the School Employees Health Benefits Program (SEHBP) to modify the reimbursement structure for premium charges under the federal Medicare program, specifically for Parts B and D. It establishes that the program will reimburse qualified retirees for their Medicare premiums, but will exclude reimbursements for any income-related monthly adjustment amounts (IRMAA) that are surcharges based on the retiree's income. The bill specifies that these changes will apply to reimbursements made on or after January 1, 2025, and it clarifies that the State will continue to cover the costs of premium charges for qualified retirees and their dependents.

Additionally, the bill outlines that the State will pay for the premium or periodic charges for benefits provided to qualified retirees, who are defined as those with 25 or more years of service credit or those who retired on a disability pension. The legislation is expected to generate an estimated $35 million in revenue for Fiscal Year 2026, as it aligns with the Governor's budget recommendations to eliminate IRMAA reimbursements. Overall, the bill aims to streamline the reimbursement process while reducing costs associated with the SEHBP.

Statutes affected:
Introduced: 52:14-17.32