The CalSTRS Medicare Premium Payment Program (MPPP) was established by legislation in 2000. The legislation became part of the Teachers' Retirement Law (section 25940) in the California Education Code. The MPPP is funded in part by employer contributions.

CalSTRS Role

CalSTRS pays Medicare Part A premiums for eligible members. CalSTRS deducts Medicare Part B premiums from retirement or disability allowances. Premiums and assessments are forwarded to the Centers for Medicare & Medicaid Services.

Information on Medicare Premiums

Premium costs vary by individual. CalSTRS does not determine the amount of your premiums. To determine the amount of your premiums, please contact Social Security. Medicare premiums:

• Are paid in advance
• Reflect the annual change in premium costs as determined by the Federal Government

Medicare Part B premiums:

• Can be deducted from retirement or disability benefits
• Will be higher for those who are assessed a/an:
  • Medicare Part B surcharge
  • Income Related Monthly Adjustment Amount (sometimes referred to as IRMAA)

Medicare and Social Security Web sites provide detailed information on their services.