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Commissioners approve catch-up Medicare stipend and raise monthly payment to $750
Summary
After finding the $500 monthly stipend for Medicare-age employees is being taxed as wages and no longer fully covering supplement costs, commissioners authorized paying missed January amounts for employees who show Medicare cards and voted to increase the monthly stipend to $750.
The board voted to pay back missed stipend amounts for January and to raise the monthly stipend for county employees on Medicare to $750.
County staff explained the $500 monthly payment originally intended to offset Medicare supplement costs is now processed as taxable wages rather than a nontaxable benefit. "It's not considered a benefit now because it doesn't go directly to the insurance company. As it comes to us, it's considered the wage," a staff member told commissioners, noting payroll withholding reduces the net amount employees receive.
To address that shortfall, a motion passed to allow employees to be made whole for the January stipend (employees must show their Medicare card) and to increase the recurring stipend from $500 to $750 to better offset taxes and supplement costs. Commissioners discussed that the higher payment will increase retirement contributions and affect payroll withholding, but they judged the net benefit to employees would be closer to covering actual supplement costs.
The motion to raise the stipend passed on a voice vote. Commissioners directed staff to implement the payroll adjustments and to accept documented proof (Medicare cards) before issuing catch-up payments.
