Each year, the Centers for Medicare and Medicaid Services (CMS) announces the Medicare Part B premium. The 2021 Standard Medicare Part B premium is $148.50, a $3.90 increase compared to the 2020 premium of $144.60.
According to CMS, most Medicare beneficiaries will pay the standard Medicare Part B premium amount.
If your modified adjusted gross income, as reported on your IRS tax return, is above the set threshold established by CMS, you’ll pay the standard Medicare Part B premium amount plus an additional Income-Related Monthly Adjustment Amount (IRMAA). If you are required to pay an IRMAA, you’ll receive a notice from the Social Security Administration (SSA) advising you of your Medicare Part B premium cost for 2021, and how the cost was calculated.
Reimbursement of Premiums
If you or your dependents are eligible for Medicare Part B reimbursement, CalPERS will automatically reimburse the eligible amount on your retiree warrant.
If you or your dependents are paying an increased Medicare Part B premium (IRMAA), you may be eligible for reimbursement of all or part of your Medicare Part B premium (some exceptions apply). The reimbursement amount is limited to the difference between your employer contribution and the cost of your plan’s premium, up to the amount of your Part B premium.
In December, CalPERS will mail letters to members currently receiving an IRMAA adjustment to their Part B premium reimbursement. These letters will detail the standard Medicare Part B premium for 2021 and provide instructions for requesting additional reimbursement.
Requesting Additional Reimbursement
If you or your dependents are paying an increased Part B premium (IRMAA) and would like to request additional reimbursement, submit a copy of your entire SSA notice showing the IRMAA determination and increased Part B premium to CalPERS. Processing time for IRMAA documents is up to 60 calendar days.
To ensure secure and timely processing, you may upload your or your dependent’s SSA notice online through your myCalPERS account.
Want to Learn More?
Read our Medicare Enrollment Guide (PDF) for more information.