The new approved amount for the maximum non-Medicare health subsidy is $2,398.29 per month, effective July 1, 2025.
On February 6, 2025, the Board of Fire and Police Pension Commissioners approved a 7% increase to the maximum non-Medicare health subsidy. With this increase, many retired members under age 65 will experience lower out-of-pocket costs.
The new maximum subsidy will fully subsidize all LAFRA, LAPRA, or UFLAC single-party and two-party non-Medicare plan premiums, as well as some family plan coverage levels, for retired 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 applicable to fiscal year 2025-2026 is 7%.
The actuarial medical trend rate is an actuarial assumption that is determined annually by the Board in consultation with their actuary. It is one of several assumptions used to determine the long-term liabilities for the annual retiree health valuation.
How did the Board determine the non-Medicare health subsidy increase?
On May 2, 2024, the Board of Fire and Police Pension Commissioners approved a new policy with a formula to determine the annual non-Medicare health subsidy increases. The formula for the maximum non-Medicare Health Subsidy, which was developed with input from Los Angeles Firemen’s Relief Association (LAFRA), Los Angeles Police Protective League (LAPPL), Los Angeles Police Relief Association (LAPRA), and United Firefighters of Los Angeles City (UFLAC), will determine future increases as the lesser of:
- The average of the annual increase in the Los Angeles Medical Care Index published by the U.S. Bureau of Labor Statistics as of the previous December and 7%; or
- The maximum allowable increase to the Non-Medicare Health Subsidy pursuant to Los Angeles Administrative Code Section 4.1154(e).
Based on this data, the Board approved a 7% increase to the maximum non-Medicare health subsidy.
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 retired members 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.
Where can I get more information?
If you have questions or need more information regarding the non-Medicare Health Subsidy increase, please contact the Medical & Dental Benefits section by calling (213) 279-3115 or toll-free at (844) 88-LAFPP, Monday-Friday from 7:30 a.m. to 4:30 p.m. (PDT), excluding weekends and City holidays. You can also reach us by email at mdb@lafpp.com.
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