SL 50001.510 Mandatory Medicare Coverage
State and local government employees hired (or rehired) after March 31, 1986, are
mandatorily covered for Medicare. Employees whose services are not covered for Social
Security but who are required to pay the HI-only portion of the FICA tax are referred
to as Medicare Qualified Government Employees (MQGE). (Employees covered under a Section
218 Agreement are already covered under Medicare.)
There are no referendums conducted for mandatory Medicare coverage, as is required
for Medicare coverage under a Section 218 Agreement. Mandatory Medicare coverage does
not apply to services already covered under a Section 218 Agreement nor does it apply
to services statutorily excluded from mandatory Medicare coverage.
Employees who have been in continuous employment with the employer since March 3l,
1986, who are not covered under a Section 218 Agreement nor subject to the mandatory
Social Security and Medicare provisions, remain exempt from both Social Security and
Medicare taxes, provided they are members of a public retirement system.
NOTE: See SL 50001.540 for Medicare coverage for public employees hired before April 1, 1986.