AARP Live Discusses Estate Planning and How to Protect the Things You Love the Most at 10 p.m. ET.  Watch Here

Trusted Social Butterfly

Re: NYC Retiree..Union Provides Drugs Benefits...Letter from SS says deducting $32.50\mo

Message 1 of 4

Have you checked with your Union or do you know how much they pay for your drug coverage? Could it be that the amount to be withheld is the difference in what your Union will pay? Sounds like you really need to talk with your Union representative about the loan you had and how paying it back affects what they will pay. Have you paid the loan?


Have you visited the Social Security web site and created an account?


Have you looked at the Medicare web site?



Report Inappropriate Content
Valued Social Butterfly

Re: NYC Retiree..Union Provides Drugs Benefits...Letter from SS says deducting $32.50\mo

Message 2 of 4

i came back to add another important part to your question which is also in the CMS link which I provided in the other response.


Read this part of the link specifically about "credible coverage"

Employers must tell whether coverage is “creditable.”


IF your Union retiree plan does provide a NON-Medicare prescription drug plan then they need to give you a letter or form specifically stating that you have CREDIBLE coverage through the NON-Medicare Union plan.

You will then opt out of the MEDICARE Part D plan using this letter as your documentation.


Keep this documentation -

because if you ever drop the non-Medicare Union Prescription drug coverage and enroll in Medicare Part D prescription drug plan, the documentation will keep you from having a late enrollment penalty surcharge.


So everything depends on what type of Union retiree prescription drug coverage which you have and what actions you will take to solve the problem or understand participation.

A plan which works WITH Medicare


A NON-Medicare prescription drug coverage


From your post it sounds like you might need that letter or document of credibility from the plan so that you can opt out of MEdicare PART D and premiums

but make sure of your plan before you do.







Report Inappropriate Content
Valued Social Butterfly

Re: NYC Retiree..Union Provides Drugs Benefits...Letter from SS says deducting $32.50\mo

Message 3 of 4

You should read and understand your unions retiree prescription drug plan and how it works.


From the Center of Medicare and Medicaid Services (CMS)

How Retiree Coverage Works with Medicare Prescription Drug Coverage


From the link -


Everyone with Medicare is eligible for Medicare prescription drug coverage,

including retirees and their family members who have Medicare but are covered by employer- or union-sponsored health plans that o er prescription drug coverage.


Medicare works with plan sponsors to offer a variety of options for people with Medicare who have retiree drug coverage. Medicare also provides incentives to help employer and union plan sponsors continue to offer drug coverage to their Medicare-eligible retirees.


. . . . Where can people with Medicare learn about their specific options? The best source of information about a person’s retiree coverage is his or her employer or union, or the plan that administers his or her coverage. Medicare doesn’t have information about a person’s individual employer- or union-based coverage, or details about how it’ll work with Medicare drug coverage. Retirees should look for materials from their employer or union about their current coverage, and read them carefully. If retirees have questions, they should visit the plan’s website, or call the phone number in the communications materials. If a phone number isn’t listed, they should call their plan or benefits administrator, or call the ofice that answers questions about their benefits.


There is more description at the link (4-pages) but unions and Medicare can work together in several different ways to provide retirees with their prescription drug coverage.  Plans differ but your benefit sponsor should be able to tell you how your specific one works and I would think that you would have written material for your specific plan explaining how it works.







Report Inappropriate Content
Info Seeker

NYC Retiree..Union Provides Drugs Benefits...Letter from SS says deducting $32.50\mo

Message 4 of 4

Retired from NYC govt.I will be 65 in 2 weeks. Got my Medicare Card for Parts A&B, city provides my supplemental for the 20% not covered by Medicare, and my union provides me with drug coverage.


Today I get a letter from SS, saying my monthly benefit will be reduced $32.50, to pay for my drug coverage! Went to local SS office, they say it's a Medicare issue, to call them. After confirming with union that they are paying 100% of my drug coverage, Medicare told me that since my 2014 income was high (due to pension loan that came due upon retirement and hence was counted as income') I was being charged $32.50 for my union drug plan! I asked how the government could charge me for a drug plan provided by my union, and not give me any benefits. They had no real answer, except some vague reference to my income in 2014. Anybody else hear about this? How can the government charge me for a drug plan they are NOT providing.


Sorry about the long rant. Appreciate any feedback.


Report Inappropriate Content