4
PENSION PERSPECTIVES
2026 NON-MEDICARE RETIREE 
HEALTH SUBSIDY INCREASE 
On February 5, 2026, the Board of Fire and Police Pension 
Commissioners (Board) approved a 5.2% increase to the 
maximum non-Medicare health subsidy. Effective July 1, 2026, 
the new maximum is $2,523.00 per month. This subsidy 
maximum is applicable to retired members who are either under 
the age of 65 or age 65+ enrolled in Medicare Part B only. The 
new maximum subsidy will fully subsidize all Los Angeles 
Firemen’s Relief Association (LAFRA), Los Angeles Police Relief 
Association (LAPRA), or United Firefighters of Los Angeles City 
(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.
How did the Board determine the non-Medicare health 
subsidy increase?
On May 2, 2024, the Board adopted a formula to determine the 
annual non-Medicare health subsidy increase. The formula, 
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), 
determines future increases as the lesser of:
1	 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
2	 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 5.2% 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 Parts A and B health plan are not impacted by the 
maximum non-Medicare subsidy increase.

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