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Your Medical Plan Premium Subsidy

A medical plan premium subsidy may be available for LACERS Retirees and eligible survivors (i.e., surviving spouses/domestic partners). A subsidy is a monthly dollar credit applied to the cost of your LACERS medical plan premiums or as a reimbursement if you participate in LACERS’ Medical Plan Premium Reimbursement Program (MPRP).

All Retired Members with health plan dependents and eligible survivors with health plan dependents must complete and submit a Certification of Dependent or Survivor Status for Health Coverage form.

The medical subsidy used to provide medical benefits to dependents may be reported as imputed income to the Retired Member or eligible survivor for Federal Tax purposes.  See Taxability of Health Subsidy.


Subsidy Eligibility of Member
You are eligible for a medical plan premium subsidy if you:

  • Are retired
  • Are age 55 or older
  • Have at least 10 years of Service
Subsidy of Eligible Survivors
The medical plan premium subsidy of an eligible survivor is based on the eligibility of the deceased LACERS member. The maximum subsidy of an eligible survivor is different from a LACERS member. Eligible survivors may qualify for a subsidy toward their own single-party coverage. However, they do not qualify for a subsidy toward dependent coverage.

If You Are Under Age 65 or Over Age 65 with Medicare Part B Only
You will receive 4% of the maximum medical subsidy for each whole year of Service Credit you have - up to 100% of the maximum medical subsidy (a minimum of 10 years of Service is required).

For example:

Years of Sevice Percentage Maximum Portion of Subsidy
21 Multiplied by (x)
4% =
84%

If You Are Over Age 65 with Both Medicare Parts A and B
Your medical plan premium subsidy is based on the single-party cost of your medical plan. Retired Members may be eligible for an additional subsidy toward dependent coverage. Eligible survivors do not receive any subsidy toward dependent coverage.  In addition, you will be reimbursed for the cost of your basic Medicare Part B premium. There is no Medicare Part B premium reimbursement for dependents or eligible survivors.


For those LACERS Members who retired on or after July 1, 2011 and who have not made additional retirement contributions pursuant to Los Angeles Administrative Code Section 4.1031.2(c), please refer to the Health Benefits Guide Supplement for your subsidy information and monthly deduction charts. For more information, contact LACERS.




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