The cost for your healthcare coverage depends on the following factors:
- Your County subsidy, based on completed years of service credit
- Your program tier (Tier 1 for those hired through June 30, 2014; Tier 2 for those hired on or after July 1, 2014)
- Your chosen healthcare plan
- Your number of enrolled eligible dependents
All retired members are eligible for LACERA-administered retiree healthcare benefits, even if they are not eligible for the County subsidy. In such cases, these retirees are responsible for the full amount of the monthly insurance premiums.
County Subsidy Based on Service Credit
The County subsidizes your LACERA-administered medical and dental/vision insurance costs once you have 10 years of service credit. The subsidy amount is based on your monthly premium or the benchmark plan rate, whichever is less.
- Tier 1 members: The County subsidy applies to the member's premium amount, whether single coverage or family coverage
- Tier 2 members: The County subsidy is based on retiree-only coverage, regardless of whether the retiree includes an eligible dependent(s). If you enroll eligible dependent(s), you will pay the difference on any monthly premium amount that exceeds the retiree-only benchmark amount.
How the Subsidy Percentage Is Determined
For members with 10 years of service credit, the County contributes 40 percent of your healthcare plan premium or 40 percent of the benchmark plan rate, whichever is less. For each additional year of retirement service credit, the County contributes an additional 4 percent, up to a maximum of 100 percent* for a member with 25 years or more of service credit.
Completed service credit purchases that count toward the subsidy include temporary, restoration, military, and other public agency (OPA) time. If service is not purchased, it will not be considered eligible in determining the subsidy amount.
Purchased additional retirement credit (ARC) and reciprocal service credit do not count toward the subsidy, with the exception of reciprocal credit from LACERS, if the member meets the eligibility requirements.
| Years of Service Credit | County Subsidy | Years of Service Credit | County Subsidy |
|---|---|---|---|
| 10 | 40% | 18 | 72% |
| 11 | 44% | 19 | 76% |
| 12 | 48% | 20 | 80% |
| 13 | 52% | 21 | 84% |
| 14 | 56% | 22 | 88% |
| 15 | 60% | 23 | 92% |
| 16 | 64% | 24 | 96% |
| 17 | 68% | 25 | 100%* |
*While you may have heard that if you work for 25 years that your retiree healthcare is free, that’s not entirely accurate. The County’s subsidy is up to the benchmark rates only. If your selected group plan’s premium exceeds the benchmark rates, you are required to pay the difference each month, even if you have 25 years of service.
Your Payment Portion
Your contribution for coverage, if any, is automatically deducted each month from your retirement allowance. The deduction prepays your coverage for the following month. If your pension benefit is insufficient to cover the amount owed, you will be billed by LACERA.
If your enrollment form is received too late for the first deduction to be made automatically, you’ll either receive a bill from LACERA, or premium deductions will be made from future retirement warrants.
Medicare Premium Reimbursement
If you are enrolled in Medicare Part B, the County offers a reimbursement program, further helping to lower your healthcare premium costs. The program is subject to annual approval by the L.A. County Board of Supervisors.