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Eligible retirees will be able to apply in 2013 for a partial refund of the new drug benefit's high-income surcharge


Under the federal Affordable Care Act, Medicare-eligible retirees with high incomes who are enrolled in a Medicare Part D prescription drug plan must pay a surcharge ranging from $11.60 to $66.40 per month.

The "modified adjusted gross income" that triggers the surcharge is $85,001 for individuals and $170,001 for married couples filing jointly.

The surcharge is known as the Income Related Monthly Adjusted Amount (IRMAA).

The trustees of the DC 37 Health & Security Plan decided earlier this year to refund affected retirees covered by the new DC 37 Medicare Part D prescription drug benefit a portion of the surcharge assessed by the federal government - only for tax year 2012.

Apply anytime in 2013

The reimbursement won't be available until 2013. Therefore, eligible retirees should not apply this year but rather wait until next year. The application may be submitted between January and December 2013.

Hundreds of retirees have already applied for reimbursement after receiving a letter sent by DC 37 Health & Security Plan in August, informing them of the opportunity to apply for the reimbursement for tax year 2012; however, the requests were submitted prematurely because applications must include the 2012 Social Security benefit statement (Form SSA 1099), which won't be sent out until next year.

Applications, including the SSA 1099 statement for the IRMAA surcharge reimbursement, may be submitted anytime in 2013. The statement must indicate the premium paid for Medicare Part D in tax year 2012.

If you submitted an application prematurely, please resubmit your application in 2013. There will be no response to these premature applications.