LACERS Sets New Health Subsidy Amounts


Michael Wilkinson, LACERS/Legal Representative

By Michael R. Wilkinson, LACERS Commissioner

Okay, it might not be the most exciting thing that the LACERS Board does each year, but it is important when the LACERS Board sets the maximum health subsidy amounts. This article will be a summary since the amounts are a little too detailed to explain every situation.

The good news is that our very well-funded health benefits (107 percent funded as of the most recent year) will be providing subsidies that cover most of the premium cost for health coverage for most members. For the upcoming 2023 plan year, 92.4 percent of the medical premium cost is covered by the health subsidy.

Some of the health subsidies are covered by ordinance and some are set by the Board, and these are the maximum subsidies. You may qualify for less depending on your years of service. The Board approved a maximum medical subsidy of $1,962.20 for Tier 1 Discretionary and Vested Retired Members under age 65 or enrolled in Medicare Part B only. The Board approved the maximum increase allowable; the dollar increases to the two-party premium for the Kaiser health plan for this group of members. This is also the amount for the Medical Premium Reimbursement Program (MPRP) for members living outside the LACERS health plans’ coverage areas.

More good news: The percentage increase to the Kaiser two-party plan of 4.3 percent was well under the cap under the Los Angeles Administrative Code of 7 percent for the three-year average of other plans. Healthy eating and exercising will encourage general wellness and reduce the cost of our health plans as well.

For members who have Medicare Part A and B for Tier 1 and Tier 3, the maximum subsidy was set at $494.67. This is also the amount for the MPRP for this group.

The maximum dental subsidy was set at $43.81 per month, an amount that cannot exceed the amount paid to active City employees. This restriction resulted in a slight decrease to the subsidy.