The maximum subsidy provided to LACERS retirees over the last seven years covers 90-94% of the medical premium cost for HMO coverage.  With the national health care spending trend estimating a 30% increase by 2012, LACERS must take proactive steps to manage the costs of our health benefits program to ensure on-going sustainability of the retiree health benefit program.  Identifying cost management strategies involves working closely with our health plan carriers to identify and influence the variables which can result in more efficient use of the plans by our members. Concurrently, we can work collaboratively with other systems to broaden our legislative and business impact.

The initiatives that will help us toward achieving this goal are:

1. Develop measurable strategies to reduce the impact of cost drivers on medical plan premiums and improve utilization of medical services
2. Build a retiree health benefits administration coalition to share cost-savings strategy ideas and create more influence with the carriers

• Minimize health care cost trends
• Ensure reasonableness of administrative expenditures
• Increased members’ satisfaction
• Increased members’ knowledge of LACERS’ value, benefits, and services