Would Bring Major Cost Savings for Retirees & State
With the threat of major healthcare cost increases on the horizon, Mass Retirees has doubled down on our efforts to advocate for the state GIC to implement what has come to be known as Medicare Buy-In. The program would apply to the more than 11,000 non-Medicare eligible retirees now insured through the GIC.
First brought to our Association as a concept by Blue Cross Blue Shield some eight years ago, the buy-in program has now been successfully implemented by several dozen Massachusetts municipalities. In short, the buy-in program applies to those retirees age 65 and older, who are not eligible for Medicare.
To be Medicare eligible, you must have earned a minimum of 40 quarters under the federal program or be eligible through your spouse. Public employees hired after April 1, 1986 paid into Medicare while those who began their public service career before that date do not.
“Non-Medicare eligible retirees have been particularly hard hit by rising costs in recent years. This is because they are enrolled in the more expensive non-Medicare plans, which not only have higher monthly premiums but also significantly higher out-of-pocket costs,” explains Mass Retirees CEO Shawn Duhamel.
“Now, more than ever, is the time to move this plan forward. Under Medicare, the federal government covers a large portion of the cost of the benefit. In addition, non-Medicare plans are simply not designed for retirees and do not provide optimal benefits for people as they age. Enrolling in Medicare not only saves the retiree money, but will also be a significant cost saver for the state.”
Under the Medicare Buy-In plan, the state would purchase or “buy” Medicare coverage for those enrollees who are not eligible for Medicare. This would include paying the cost of Part A, which is free for those who qualify for Medicare, along with any late enrollment penalties.
While Mass Retirees has pushed the GIC to engage the program for several years, implementation of the buy-in program is no easy task. For starters, each of the 11,000+ non-Medicare eligible retirees would have to have their Medicare benefit individually calculated. This alone is a large administrative task with which the GIC will likely need help implementing.
Together with officials from the GIC, Mass Retirees recently met with senior aides to Governor Maura Healey on the topic of implementing Medicare Buy-In. The reason for the meeting was to gain needed support from the Administration to help facilitate the logistical operations required to move forward with the program.
“While no firm agreement has been reached, I can say that we believe progress is being made to finally get this program off the ground. Due to the number of retirees involved, it is not something that can be done easily or quickly. However, given the serious financial pressure being placed on non-Medicare eligible retirees and the added budgetary costs to the state, we strongly believe that the process to begin Medicare Buy-In must start ASAP. Our hope is to be able to report on further progress toward implementation early in 2026”, added Duhamel.