Medicare Part B Reimbursement: A Hidden NYC Retiree Perk

Here's a retirement benefit a lot of NYC teachers don't realize they have: once you're on Medicare, the City of New York reimburses you for your Medicare Part B premiums. That's real money back in your pocket every year — and for most retirees it happens automatically. Here's how it works.

What gets reimbursed

When you become Medicare-eligible, you pay a monthly premium to Medicare for Part B (which covers doctors and outpatient care). The City reimburses eligible retirees for the standard Part B premium — for reference, that standard premium was $174.70 per month in 2024 and $185.00 per month in 2025 (about $2,220 for the year). Medicare's standard premium usually rises a bit each year, and the City's reimbursement tracks the standard amount. Note that any late-enrollment penalty is not reimbursed — one more reason to sign up for Part B on time.

For most retirees, it's automatic

To receive the reimbursement, you need to be receiving a pension check, be the contract holder for your city health benefits, and have your Medicare information on file with the City. Once the City has your Medicare card on record, the annual reimbursement is issued automatically — by direct deposit if you're set up for electronic transfer, or by a mailed check (historically in June). If you're newly Medicare-eligible, submit the Medicare Part B Reimbursement Program application so the City has what it needs.

If you're a higher earner: IRMAA

Higher-income retirees pay more than the standard Part B premium — an income-based surcharge called IRMAA (the Income-Related Monthly Adjustment Amount). The good news is the City reimburses IRMAA too — but unlike the standard reimbursement, IRMAA is not automatic. You have to apply each year and submit proof of what you paid (typically your SSA letter and documentation). IRMAA reimbursements are usually issued separately, later in the year (historically around October). If your income puts you into IRMAA territory, put that annual application on your to-do list — it can be worth far more than the standard reimbursement.

How to make sure you get every dollar

• Enroll in Medicare Part B on time at 65 (or when you become eligible) to avoid a penalty that isn't reimbursed.
• Make sure the City (through OLR) has a copy of your Medicare card on file so your standard reimbursement runs automatically.
• If you pay IRMAA, file the IRMAA reimbursement application every year with your documentation.
• Keep your direct-deposit and address details current so payments reach you.

Fold it into your retirement income picture

The Part B reimbursement is one of several pieces of NYC retiree income that are easy to overlook. Our free Retirement Roadmap helps you see your full picture — pension, Social Security, TDA, and the benefits that come with city retiree coverage — on one timeline.