As part of the effort to resolve the severe shortfall in the California budget, the Legislature and Governor adopted state law that ends Medi-Cal payments of the Medicare Part B premiums for some Medi-Cal beneficiaries as of November 1. This action will impact about 57,000 seniors and persons with disabilities who currently pay a share of cost of at least $501 for their Medi-Cal funded health care services. The federal Social Security Administration will begin deducting the Medicare Part B premiums from the Social Security checks of affected beneficiaries beginning with the check to be received in December 2008. A beneficiary who meets a share of cost of $501 or more in any one-month in which the premium was deducted from the Social Security check will be reimbursed retroactively for that month in a subsequent Social Security check. Beneficiaries with zero share of cost Medi-Cal, or those who have a share of cost below $501 per month, will continue to have their Part B premiums paid.

The Department of Health Care Services (DHCS) will publish more detailed information about this change to beneficiaries within a month. If you have any questions, please call 1-800-952-5294.