2019 Non-Medicare Health Subsidy Increase

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On May 2, 2019, the Board of Fire and Police Pension Commissioners approved a 5.5 percent increase to the non-Medicare health subsidy.  The new non-Medicare health subsidy maximum is $1,820.29 per month, effective July 1, 2019.

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 actuarial medical trend rate, an increase of 5.5 percent will subsidize health insurance premiums in a manner consistent with the Board’s fiduciary duty to all participants of the Plan.  The approved increase to the maximum non-Medicare subsidy is based on objective factors, including changes in the actual retiree health plan premiums and market trend, and the overall impact to current and future retirees. 

Members who either: (1) entered DROP or retired prior to July 15, 2011, (2) are members of Tier 6, or (3) 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 $1,820.29, effective July 1, 2019.

For more 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.