Participation in the CalSTRS Medicare Premium Payment Program (MPPP) is optional and based on your ability to qualify for the program. You must decide what is best for your own situation.

Requirements

The MPPP is available to eligible members of the CalSTRS Defined Benefit Program whose most recent retirement date is prior to July 1, 2012. The eligibility requirements are outlined in Education Code section 25940.

You’re eligible if your most recent retirement date was before January 1, 2001, and:

• You do not qualify for premium-free Medicare Part A.
• You are at least 65 years of age.
• You are enrolled in both Medicare Part A (hospital insurance) and Part B (medical insurance).

OR

You’re eligible if your most recent retirement date was on or after January 1, 2001, but before July 1, 2012, and:

• You do not qualify for premium-free Medicare Part A.
• You are at least 65 years of age.
• You are enrolled in both Medicare Part A (hospital insurance) and Part B (medical insurance).
• You retired from either:
  • An employer that completed a Medicare Division prior to January 1, 2001 or
  • An employer that completed or was conducting a Medicare Division on or after January 1, 2001, and if you were less than 58 years old at the time of the division, you elected to be covered by Medicare.

A Medicare Division is “completed” once the voting results are delivered to the Commissioner of Social Security and federal approval has been granted.

CalSTRS can pay and deduct Medicare premiums for CalSTRS members only. Member spouses or beneficiaries are not eligible for the program.

Medicare Division

Employers that conducted Medicare Divisions prior to 2012 offered employees the option to pay the Medicare tax and enroll in the MPPP.

Medicare Divisions must have been conducted and completed pursuant to Government Code section 22156, Section 218 of the Social Security Act, and applicable federal regulations. A Medicare Division is “completed” once the voting results are delivered to the Commissioner of Social Security and federal approval has been granted.

If you started CalSTRS-covered employment before April 1, 1986, you were not initially subject to the Medicare tax. If you switched employers after that date, or if your employer held a Medicare Division and you voted “yes,” you began paying the Medicare tax. If you or your spouse paid the Medicare tax for 10 or more years, you most likely qualify for premium-free Medicare Part A on your own.

If you began receiving a disability allowance and continuously received it until age 65 or older, you may be eligible for the MPPP.

CalSTRS will also pay any applicable surcharges (penalties for late enrollment in Medicare) assessed by Medicare that apply to Parts A and B if the retired member is over age 65, enrolled in Medicare Parts A and B prior to July 1, 2001, and CalSTRS pays their Medicare Part A premium. CalSTRS will not pay Medicare Part B surcharges if the member is receiving premium-free Medicare Part A.

For questions regarding eligibility, contact us.