OPINION – DiNapoli pension fund decision victory for retirees, climate Thursday, January 21, 2021. With…
Jack McPadden, President of the Retired Public Employees Association, denounced proposals in the Executive Budget, which would reduce benefits for state retirees who participate in the New York State Health Insurance Plan (NYSHIP).
McPadden noted, “The state realizes significant savings by having retirees enroll in Medicare as their primary health insurance provider. Imposing a cap at the current rate amounts to a cut in future reimbursements, as Medicare premiums will rise over time. Also, we once again urge the Legislature to reject the proposed elimination of the Income Related Monthly Adjustment Amount (IRMAA) reimbursement to certain retirees. Retirees did not create the state deficit, and cuts in retiree health benefits are not an acceptable option. We call upon the Legislature to reject these proposals”.
Current state employees, and retirees, receive health insurance coverage through NYSHIP. When retirees turn 65, NYSHIP forces them to enroll in Medicare, and pay the Medicare premium in addition to their NYSHIP premium. By doing so, NYSHIP saves money, even after reimbursing the retiree the amount of the Medicare premium, as required under existing law. Capping the Medicare reimbursement will shift future Medicare increases solely on the retirees.
To read the full testimony please click here: 2018 Joint Fiscal Committee Testimony