State Subsidies For Retiree Medical & Rx Coverage

Overview

Subsidies for State retiree medical and prescription coverage are provided based on date of retirement, years of State service and age. Spouses, dependents, and public school teachers that retire through ERSRI are eligible to enroll, but they are not eligible for any State subsidy towards the cost of their coverage.

Alert!

You must IMMEDIATELY start collecting your State pension upon retirement in order to qualify for State-sponsored medical and prescription coverage as well as any State subsidy.

Subsidy Percentages

Note on retirement age:

  • Under age 65

    The “Retiree Pays” subsidy percentage will be applied to your applicable monthly premium rate, and the resulting amount will be deducted post-tax from your monthly pension check.
  • Age 65+

    State subsidies are delivered in the form of State contributions to a health reimbursement arrangement (HRA). To receive an HRA, you must purchase a Medicare supplement plan (Medigap) or a Medicare Advantage plan through Via Benefits. The “State Pays” percentage is applied to the age-based cost of a benchmark Medicare supplemental "Plan F" policy, and the resulting amount is allocated to your HRA.

Date of retirement between 7/1/89–9/30/08

Under age 65

Years of State Service Age at Retirement State Pays Retiree Pays
10–15 60 50% 50%
16–22 60 70% 30%
23–27 60 80% 20%
28+ <60 90% 10%
28+ 60 100% 0%
35+ Any 100% 0%

Age 65+

Years of State Service Age State Pays Retiree Pays
10–15 65 50% 50%
16–19 65 70% 30%
20–27 65 90% 10%
28+ 65 100% 0%

Note on retirement age:

  • Under 59

    If you enroll in State-sponsored retiree health coverage prior to turning 59, you will be required to pay the full cost of the coverage; any subsidy that you qualify for will kick in the month in which you turn 59.
  • Age 59-64

    If you have 20+ years of State service, the “Retiree Pays” subsidy percentage will be applied to your applicable monthly premium rate, and the resulting amount will be deducted post-tax from your monthly pension check.
  • Age 65+

    State subsidies are delivered in the form of State contributions to a health reimbursement arrangement (HRA). To receive an HRA, you must purchase a Medicare supplement plan (Medigap) or a Medicare Advantage plan through Via Benefits. The “State Pays” percentage is applied to the age-based cost of a benchmark Medicare supplemental "Plan F" policy, and the resulting amount is allocated to your HRA.

Date of retirement on or after 10/1/08

Years of State Service Age State Pays Retiree Pays
20+ 59 80% 20%