2022 Non-Medicare Subsidy Increase
The new approved amount for the non-Medicare health subsidy maximum is $2,046.97 per month, effective July 1, 2022.
On April 21, 2022, the Board of Fire and Police Pension Commissioners approved a 4.5% increase to the non-Medicare health subsidy. With the increase to the non-Medicare health subsidy, many retired members under age 65 will experience lower out-of-pocket costs. In fact, the maximum subsidy will fully subsidize all LAFRA or LAPRA single-party and two-party non-Medicare plan premiums, as well as some family plan coverage levels for members with a non-frozen subsidy and at least 25 years of service.
Each year, the Board has the authority to increase the non-Medicare subsidy by up to the lesser of 7% or the actuarial medical trend rate for the upcoming fiscal year. The non-Medicare actuarial medical trend rate for fiscal year 2022-2023 is 7.50%, therefore the Board had the authority to increase the subsidy by up to 7% this year. The approved 4.5% increase is consistent with the Board’s fiduciary duty to all members. The Board considered the following information that would potentially affect members:
- Impact to out-of-pocket premium costs for non-Medicare subsidy eligible retirees;
- Impact to retirees in multi-party Medicare plans; and
- Average premium changes among most eligible plans.
Do I qualify to receive the non-Medicare subsidy?
The actual increase in subsidy benefit per member is dependent upon eligibility and the retiree’s respective health plan premium. The approved increase to the maximum non-Medicare subsidy provides fully subsidized single- and two-party coverage for all eligible pensioners with 25+ years of service. Qualified survivors who are under the age of 65 and pensioners who are enrolled in a Board-approved HMO or PPO single-party Medicare health plan are not impacted by the maximum non-Medicare subsidy increase.
If you have questions or need more information regarding the non-Medicare Health Subsidy increase, please contact Medical & Dental Benefits at (213) 279-3115 or via email at email@example.com.