The medical premium reimbursement program will be provided upon the conditions set forth below in order to lessen or defray part or all of the cost of medical plans to eligible retirees, as hereinafter defined.
(a) Eligibility for Medical Premium Reimbursement. Upon written application and verification, as required by the Board, those retirees who have at least ten (10) years of Health Service Credit, are age fifty-five (55) years or older, and reside more than three (3) months of the year:
(1) outside the state of California; or
(2) in the state of California, but not within a LACERS administered HMO medical plan zip code service area, and are enrolled in a federally qualified HMO or a state regulated health insurance plan, shall be eligible for the medical plan premium reimbursement as provided in Subsection (c) or Subsection (e), as applicable.
(b) Maximum Medical Premium Reimbursement for Retirees without Medicare Part A. The Board shall set the maximum medical plan premium reimbursement for retirees not eligible for Medicare or retirees not eligible for premium free Medicare Part A in the same manner as in Section 4.1121(b) of this Article. Retirees who are eligible to enroll in Medicare Part B must do so in order to be entitled to reimbursement.
(c) Reimbursement for Eligible Retirees without Medicare Part A. Those retirees who are receiving a service retirement allowance or a disability retirement allowance, and who either are not eligible for Medicare or do not qualify for benefits under Part A of Medicare premium free, shall be reimbursed the following amount:
(1) Basic Monthly Reimbursement. For ten (10) years of Health Service Credit, forty percent (40%) of the maximum monthly medical plan premium reimbursement amount established pursuant to the provisions of Subsection (b) herein.
(2) Additional Monthly Reimbursement. For more than ten (10) years of Health Service Credit add three percent (3%) of the maximum monthly medical plan premium reimbursement amount to the Basic Monthly Reimbursement for each whole year of Health Service Credit in excess of ten (10) years.
(3) Maximum Monthly Reimbursement. The amount paid shall not exceed the maximum monthly medical plan premium reimbursement established pursuant to the provisions of Subsection (b) herein or the amount of the plan premium being reimbursed.
(4) Dependent Reimbursement. Premium reimbursement may not be applied toward coverage for dependents of retirees.
(d) Maximum Medical Premium Reimbursement for Retirees Enrolled in Parts A and B of Medicare. The maximum monthly medical plan premium reimbursement for retirees enrolled in Parts A and B of Medicare shall be $480.41. The Board, in its discretion, may, by resolution, increase the monthly amount of medical plan premium reimbursement of retirees enrolled in Parts A and B of Medicare, provided that the amount of the maximum monthly medical plan premium reimbursement shall not exceed one hundred percent (100%) of the single-party monthly premium of the highest cost approved Medicare supplemental or coordinated plan provided by LACERS.
(e) Reimbursement for Eligible Retirees Enrolled in Medicare Part A and Part B. Those retirees who are receiving a service retirement allowance or a disability retirement allowance and who qualify for benefits under Parts A and Part B of Medicare, shall be reimbursed the following amount:
(1) Monthly Reimbursement (75%). For ten (10) years or more, but less than fifteen (15) years of Health Service Credit, seventy-five percent (75%) of the monthly medical plan premium reimbursement amount established pursuant to the provisions of Subsection (d) herein.
(2) Monthly Reimbursement (90%). For fifteen (15) years or more but less than twenty (20) years of Health Service Credit, ninety percent (90%) of the monthly medical plan premium reimbursement amount established pursuant to the provisions of Subsection (d) herein.
(3) Monthly Reimbursement (100%). For twenty (20) or more years of Health Service Credit, one hundred percent (100%) of the monthly medical plan premium reimbursement amount established pursuant to the provisions of Subsection (d) herein.
(4) Dependent Reimbursement. Premium reimbursement may not be applied toward coverage for dependents of retirees.
(f) Medicare Enrollment. Retirees who are eligible to enroll in Medicare Part B must do so in order to qualify for the medical premium reimbursement provided in Subsections (c) and (e) of this section. Retirees who are not entitled to premium free Part A of Medicare are not required to enroll in Part A.
(g) Payment Limitation. In no event shall the reimbursement provided in this section, when added to any other medical plan subsidy provided by the Department of Water and Power or the Fire and Police Pension Plan, exceed the maximum amount established in Subsection (b) herein.
SECTION HISTORY
Added by Ord. No. 182,629, Eff. 7-25-13.