2018 Non-Medicare Subsidy Increase


On May 3, 2018, the Board of Fire and Police Pension Commissioners approved a six percent increase to the non-Medicare health subsidy.  The new non-Medicare health subsidy maximum is $1725.39 per month, effective July 1, 2018.

While the upper limit of the Board’s authority to increase the non-Medicare subsidy is the lesser of seven percent or the Board-approved medical trend rate, an increase of six percent will subsidize health insurance premiums in a manner consistent with the Board’s fiduciary duty to all participants of the Plan.  The proposed maximum non-Medicare subsidy of $1725.39 is based on known factors related to medical inflation and market trend, taking into account the overall impact to current and future retirees. 

Members who either (1) entered DROP or retired prior to July 15, 2011, or (2) chose to opt-in to pay an additional two percent in contributions are eligible to receive a maximum non-Medicare health subsidy not to exceed $1,725.39, effective July 1, 2018.

For information regarding the non-Medicare Health Subsidy increase or if you have specific questions regarding a pending subsidy credit, please contact Medical & Dental Benefits at (213) 279-3115.