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State Will No Longer Pay Part B Premium for Beneficiaries with a Share of Cost Over $500

California Health Advocates > Low-Income help > State Will No Longer Pay Part B Premium for Beneficiaries with a Share of Cost Over $500

Posted by Karen Fletcher on October 28, 2008

As of November 1, 2008, California’s 57,000 Medicare beneficiaries who also have Medi-Cal with a share-of-cost (SOC) over $500 will no longer have their Medicare Part B premium paid for by the state. This means people with a share of cost incomes that exceed 129% of the Federal Poverty Level ($13,416/year for an individual and $18,060 for a couple) will have to pay the $96.40 Part B premium themselves each month in order to keep their Medicare Part B.

Previously, all Medicare beneficiaries with Medi-Cal, whether they had full Medi-Cal or Medi-Cal with a share of cost, did not had to pay their Medicare Part B premiums. Now, (as of 11/1/08) these beneficiaries will have their $96.40 monthly Medicare Part B premium deducted from their Social Security checks.  Paying an extra almost $100 each month for one’s Part B premium may well be a large financial burden to the tens of thousands of people affected by this change.

This change is part of the Governor’s proposed budget reductions and is expected to save $50.1 million in 2008-09 fiscal year. See a summary of all budget changes at ebudget.ca.gov/BudgetSummary/HHS/32266019.html.

The California Department of Health Care Services (DHCS) is sending out a letter to all affected beneficiaries on October 22, 2008. DHCS will also send out a more detailed notice within a month.

See our website for more information on Medi-Cal.

Filed Under: Low-Income help

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About Karen Fletcher

Our blogger Karen J. Fletcher is CHA's publications consultant. She provides technical expertise, writing and research on Medicare, health disparities and other health care issues. With a Masters in Public Health from UC Berkeley, she serves in health advocacy as a trainer and consultant. See her current articles.

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