LACERS Health Plans Update

Kaiser Premium Rate Reduction:

The Centers for Medicare and Medicaid Services (CMS) issued final premium rates in October for Medicare plans, resulting in a further premium reduction in our 2006 Kaiser rates listed below. Consequently, Kaiser Permanente Retiree Non-Medicare and Medicare plan deductions have also decreased from what was printed in our 2006 Health Benefits Guide. Click this link (2006 Kaiser Rates and Deductions) to view a comprehensive 2-page chart that includes both the reduced rates and corresponding monthly deductions. Overall savings to LACERS from Medicare Part D for 2006 after this premium reduction is estimated at $5,257,000.

Surviving Spouse/Domestic Partner Non-Medicare A & B Subsidy Reduction:

The Los Angeles Administrative Code sets the maximum non-Medicare Surviving Spouse/Domestic Partner medical subsidy at Kaiser's one-party non-Medicare premium rate. The reduction in our Kaiser premiums triggered a reduction in the non-Medicare (under Age 65 or Medicare B only) Surviving Spouse/Domestic Partner medical subsidy. Click this link (2006 SP-DP Subsidy and Deductions) to view a comprehensive chart that includes both the reduced Surviving Spouse/Domestic Partner subsidy and the corresponding monthly deductions. Below is a summary of the monthly deduction increases between 2005 and 2006 for Surviving Spouses/Domestic Partners who are under age 65 or age 65 with only Medicare Part B in a LACERS' Blue Cross Plan.

All impacted Surviving Spouses/Domestic Partners were sent a separate mailing. If you believe you may be impacted but did not receive the mailing, please contact LACERS at 800-779-8328.