LD 591 LR 514(02)
An Act to Require the State to Pay Medicare Premiums for Certain Retired State Employees
Fiscal Note for Bill as Amended by Committee Amendment " "
Committee: Labor and Housing
Fiscal Note Required: Yes
Fiscal Note
FY 2023-24 FY 2024-25 Projections  FY 2025-26 Projections  FY 2026-27
Net Cost (Savings)
General Fund $3,068,552 $6,289,879 $6,602,875 $6,931,316
General Fund $3,068,552 $6,289,879 $6,602,875 $6,931,316
Fiscal Detail and Notes
The bill requires the state to pay 100% of a retiree's share of Medicare Part B premiums for retirees not eligible for Social Security benefits whose base annual state pension benefit is at or below the maximum amount of retirement benefits subject to the cost-of-living-adjustment. The bill includes ongoing General Fund appropriations to the Department of Administrative and Financial Services of $3,068,552 in fiscal year 2023-24 and $6,289,879 in fiscal year 2024-25 for the state payment of the Medicare Part B premium for eligible retired state employees beginning January 1, 2024. 
These estimates assume Medicare Advantage enrollment increases 0.63% annually for retired State employees, reflecting historical experience over 3 years. The estimates are based on the current Medicare Part B premium amount of $164.90 per month and assume an increase of 4.98% annually, reflecting the annual average for the past 10 years. To the extent that retired state employees  in the Medicare Advantage Program pay a Medicare Part B late enrollment penalty, the actual cost to the State will be higher.