Social Security Fairness Act and Kansas Medicare Savings Programs

The Social Security Fairness Act (H.R. 82), signed into law on January 5, 2025, repealed two provisions that had reduced Social Security benefits for public-sector retirees for decades: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). For Kansas public retirees whose Social Security benefits were reduced by WEP or GPO, restored or newly claimed benefits can change the income used to determine Medicare Savings Program eligibility.

What WEP and GPO Did — and Why They're Gone

WEP reduced Social Security retirement benefits for people who also received a pension from a job not covered by Social Security. GPO reduced or eliminated spousal and survivor Social Security benefits for the same group. Both are fully repealed for benefits payable from January 2024 onward. SSA paid retroactive adjustments starting February 2025, and implementation is complete.

Kansas has a significant population affected by these repeals: retired teachers, state employees, city and county workers, and public safety personnel who earned pensions through KPERS or municipal plans while also accumulating some Social Security credits through private-sector work.

How It Affects MSP Eligibility

The repeal works in two directions for Medicare Savings Program eligibility:

Higher Social Security = may push some over the limit. A Kansas retiree who previously received $1,100/month in Social Security (reduced by WEP) might now receive $1,400/month after the restoration. With the $20 general income disregard, their countable income rises from $1,080 to $1,380 — still under the QMB limit of $1,350? No, $1,380 exceeds QMB but falls under LMB ($1,616). The tier may shift, and some retirees may cross above the ELMB ceiling of $1,816.

New Social Security = may now qualify for benefits. Some public retirees never applied for Social Security spousal or survivor benefits because GPO would have wiped them out entirely. With GPO repealed, a Kansas widow who worked as a teacher and whose deceased spouse had Social Security may now be entitled to a survivor benefit she never claimed. That new income stream could push total income above or below MSP thresholds depending on the amount.

What to Do Now

If your parent already has an MSP: The KanCare Clearinghouse will see the higher Social Security amount at the next annual redetermination. If the increase pushes countable income above the current tier limit, the Clearinghouse may move your parent to a lower tier (QMB to LMB, for example) or terminate coverage if income exceeds the ELMB ceiling. Check the numbers proactively — don't wait for a termination notice.

If your parent was denied before: A prior denial based on income calculated under WEP-reduced Social Security may have been close to the threshold. But now Social Security is higher, not lower — so a reapplication only helps if the prior denial was for a reason other than income, or if the person's total income still falls within MSP limits.

If your parent never applied for Social Security because of GPO: They need to file a new claim at Social Security. Retroactive adjustments applied automatically to people already receiving benefits, but someone who never applied must file. The new benefit amount, combined with any state pension, determines MSP eligibility. SSA restored payments don't happen automatically for people who never claimed.

The KPERS Distinction

The Social Security Fairness Act repealed the federal WEP and GPO. Any adjustment under a state pension plan is a separate plan provision, not one of those federal offsets. Check the member's KPERS or municipal plan terms for any plan-level adjustment.

For help calculating whether your parent's restored Social Security benefit changes their MSP eligibility, the Kansas Medicare Savings Programs & Extra Help Guide includes an income calculation worksheet with specific guidance on counting restored benefits.

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