This
section explains deductions from your monthly annuity for
other Federal programs.
Medicare
Coverage
General Information
About Medicare
Medicare is a two part Federal health insurance program,
administered by the Centers for Medicare & Medicaid
Services (CMS), for people who are age 65 or older; who
are totally and permanently disabled, or who have permanent
kidney failure. One part of Medicare is Hospital
Insurance (also known as Part
A). The other part is Medical
Insurance (also known
as Part B).
If you are eligible for Medicare because of permanent kidney
failure (End Stage Renal Disease), you must call or visit
your local Social Security Administration office or call
the Social Security Administration at 1-800-772-1213 to
enroll in Medicare Part A and Part B. For all other Medicare
eligibility, the RRB can help you enroll in Medicare Part
A and Part B.
- Hospital
Insurance (Part A) can help pay for four kinds
of care:
- inpatient hospital care;
- inpatient care in a skilled nursing facility following
a hospital stay;
- care in your home by a home health agency; and,
- hospice care.
As soon as you are determined to be eligible for Medicare,
you will automatically be enrolled for Hospital
Insurance coverage (Part
A). You do not pay a monthly premium for your
Hospital Insurance
(Part A).
- Medical
Insurance (Part B) can help pay for the following
additional kinds of medically necessary care:
- doctors’ services;
- outpatient hospital services; and,
- a number of other medical services and supplies
that are not covered by the Hospital
Insurance (Part
A).
Medical Insurance (Part
B) at Age 65 or Older
Enrollment for Medical
Insurance (Part B)
depends on your age when you file your spouse or divorced
spouse annuity application.
- If you are under age 64 years and 5 months when you
file your annuity application, you will be automatically
enrolled in Medical
Insurance (Part B) at age 65, unless you decline
this coverage.
- If you are at least age 64 years and 5 months, when
you file your annuity application, you can use your annuity
application to enroll for Medical
Insurance (Part B) .
If you want Medical
Insurance (Part B) at age 65, you must pay a premium
for each month you have this insurance. If you receive an
annuity, the premium will usually be deducted from your
monthly annuity rate.
If you do not want Medical
Insurance (Part B) at age 65 and then decide at a
later date that you do want to sign up, your protection
may be delayed and your premiums may be more expensive.
If at any time, you wish to cancel the election that you
make on your annuity application, you must contact the nearest
office of the RRB.
Special Enrollment
Period (SEP) -
You may delay enrolling in Medical
Insurance (Part B) coverage without penalty if you
are covered under a Group
Health Plan (GHP) at age 65. The GHP
may be based on your own employment or the employee's employment.
You may enroll in Medical
Insurance (Part B) at any time while you are covered
under the GHP
or you can enroll during a Special
Enrollment Period (SEP). Your SEP
begins when the employment on which the GHP
is based ends or the first month you are no longer covered
under the GHP,
whichever comes first. The SEP
lasts for eight months.
The beginning date of your Medical
Insurance (Part B) coverage depends on the status
of your GHP enrollment
when you file for the Medical
Insurance (Part B).
- If you file for Medical
Insurance (Part B) during any month in which you
are enrolled in an GHP,
or in the first month of your SEP,
you can choose the effective date of your Medical
Insurance (Part B). The effective date can be the
first day of the month you file or the first day of any
of the following three months after the month of filing.
Example 1 - If your GHP
coverage based on current employment has not ended and
you file for Medical
Insurance (Part B) in May, you can chose May
1, June 1, July 1, or August 1 for you Medical
Insurance (Part B) effective date.
Example 2 - If you GHP coverage based on current employment
ends on March 19, and you file for Medical Insurance
(Part B) the following applies:
- If you file anytime after March 19, but before April
1, you can choose the effective date of March 1, April
1, May 1, or June 1, for your Medical
Insurance (Part B); or,
- If you file anytime in April, you can choose the
effective date of April 1, May 1, June 1, or July
1, for your Medical Insurance (Part B).
- If you file for Medical
Insurance (Part B) during the other seven months
of your SEP,
your Medical Insurance
(Part B) will begin the first day of the month after the
month you file. The beginning date can be no later than
the ninth month after the start of your SEP.
Example - If your GHP
coverage based on current employment ends on March
19, and you file for Medical
Insurance (Part B) anytime during the period
May 1 through November 30, your Medical
Insurance
(Part B) will begin the month after the month in
which you file your annuity application.
If you are already enrolled in Medical
Insurance (Part B) and are paying higher premiums
due to late enrollment, and you had GHP
coverage at age 65, you may use your annuity application
to request a review of the Medical
Insurance (Part B) premium rate you are paying.
Prescription Drugs
-
In 2003, new Medicare legislation
was enacted. Among other things, the legislation provides
for a prescription drug benefit for Medicare beneficiaries.
Until that benefit goes into effect in 2006, Medicare
beneficiaries will be able to purchase a prescription drug
discount card. Individuals with incomes below certain levels
may qualify for $600 credit to be added to the discount card
that may be used to help pay for prescription drugs.
Early Medicare Based
on Disability -
The RRA does not provide a spouse annuity or divorced spouse
annuity based on disability. If you are totally disabled
for all employment, you may be covered by early Medicare
before age 65 on your own earnings record. If you
have at least 120 months of railroad service, or 60-119
months of railroad service with at least 60 months of railroad
service after 1995, refer to Booklet RB-1D Employee
Disability Benefits for an explanation of the
disability requirements. Otherwise, you should contact
SSA to file for early Medicare on you own earnings record.
More Information About
Medicare -
If you need more
information about Medicare, contact the nearest RRB office.
You may also find answers to you questions by going to www.medicare.gov
or calling 1-(800)-MEDICARE (1-800-633-4227).
Federal
Income Tax Withholding
Withholding for Federal Income Tax
may occur, either based on your election filed on Form W-4P
Withholding Election Form, or, if you do not file a Form
W-4P, based on a status of "Married with three dependents."
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