Mandatory Medicare Coverage
State and local governments had a voluntary arrangement for social security participation when Medicare was enacted in the 1960s and Congress decided on the same arrangement with respect to Medicare. As part of the Consolidated Omnibus Reconciliation Act of 1985 (COBRA), Congress applied Medicare to state and local employees on a "new hires" basis, covering those hired after April 1, 1986. The Association believes that mandatory Medicare coverage for employees hired before April 1, 1986 would lead to long-term savings for state and local governments and ensures that retirees would have health insurance coverage. The Association supports mandatory Medicare coverage.
Mandatory Medicare Resolution
WHEREAS, all state and local government employees hired after March 31, 1986, are covered by Medicare; and
WHEREAS, the Senate Committee on Finance has approved a Medicare reform bill that would require mandatory Medicare coverage for all state and local government employees effective January 1, 1996; and
WHEREAS, this proposal could lead to long-term savings for state and local governments; and
WHEREAS, this proposal ensures that retirees would have health insurance coverage; now, therefore, be it
RESOLVED, that the International Personnel Management Association supports mandatory Medicare coverage for state and local employees.