LACERS Sets Minimum 2021 Health Subsidies


Michael Wilkinson, LACERS/Legal Representative

By Michael R. Wilkinson
LACERS/Legal Representative

The LACERS Board has approved the new maximum health subsidies. The subsidy continues to cover all the two-party Kaiser premium for under 65 members and those 65 and over with Medicare Part B only.

The maximum premium subsidy for Tier 1 Discretionary and Vested Retired Members under age 65, or with Medicare Part B only, is $1,760.80. This same amount applies to those in the Medical Premium Reimbursement Program under the same conditions.

Tier 1 Medicare retirees with both Medicare Parts A and B receive a maximum reimbursement of $564.92 as well as Tier 3 retirees and members in the Medical Premium Reimbursement Program, with Medicare Parts A and B.

Tier 1 applies to all members hired before Feb. 21, 2016. Tier 3 applies to members hired after that date. Discretionary members are those members retired on or before June 30, 2011 and Vested are those members retired on or after July 2, 2011 and made additional contributions to LACERS for retiree health benefits. Capped members are those who retired on or after July 1, 2011 and did not make additional contributions and is set at the 2011 amounts. Very few members are in the capped group.

The maximum dental subsidy was set at $44.60 for both Tier 1 and Tier 3 retirees.

The out-of-pocket cost for your LACERS health program is based on any excess of the premium cost for the plan you chose after deducting your subsidy amount. Since the total health plan premium increase was less than 1 percent, the net increase to members who pay out of pocket is quite modest. The average retiree for both Medicare and non-Medicare plans will pay a monthly increase of less than $1 per month.