The Monthly Medical Allowance (MMA) helps eligible retirees offset their monthly medical costs for enrollment in ACERA-sponsored medical plans (costs for outside plans are not covered). The MMA is a non-vested (non-guaranteed) benefit subject to available funds. Benefit levels are determined annually by the Board of Retirement.

Reciprocal Service Doesn’t Count Toward the Service Credit Requirement for the Monthly Medical Allowance

When planning your retirement, it’s important to understand that reciprocal service credit does not count toward the service credit required to be eligible for the Monthly Medical Allowance or any of the healthcare benefits. Reciprocal service credit is service credit you earned working for another public agency in California before or after your active membership with ACERA, and where you’ve linked the retirement systems together by establishing reciprocity. Service credit you earned in another retirement system could possibly be used to establish healthcare benefits with that system; contact that other retirement system to learn about what healthcare benefits they offer.

Group Plans MMA

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The maximum MMA amount is limited to your self-only medical premium or the highest allowable benefit under the MMA, whichever is lower. Plan premium costs exceeding the MMA contribution are deducted from your monthly retirement allowance. Premiums for your dependents are also deducted from your monthly retirement allowance.

 

MMA Does Not Cover

• Medicare Part B Income-Related Monthly Adjustment Amounts (IRMAA) charged by Medicare to members with higher incomes who are enrolled in the Kaiser Permanente Senior Advantage Medicare Plan. ACERA only reimburses for the cost of the IRMAA for members enrolled in individual Medicare plans through Via Benefits. However, ACERA does reimburse for the base premium for Medicare Part B is a separate benefit, the Medicare Part B Reimbursement Plan.

 

Individual Plans Non-Medicare MMA

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Your MMA can be used to pay your self-only monthly medical plan premiums as well as medical or prescription copays and deductibles (our plan excludes other IRS Code Section 213(d) reimbursement expenses). You will need to submit those claims to Via Benefits for reimbursement (including Kaiser members). ACERA will fund a tax-free Health Reimbursement Account (HRA) up to the amount you are eligible for, and Via Benefits will reimburse you for expenses out of your HRA. You set up an automatic reimbursement to your bank account.

For more information on receiving reimbursements, read the Making Your Via Benefits Reimbursements Easier Flyer.

Unused MMA amounts at the year’s end do not carry over into the new plan year, and do go back into ACERA’s reserve funds.

An Alternative to the MMA for Via Benefits Plans: A Federal Subsidy

When you call Via Benefits to explore enrolling in a non-Medicare eligible plan, your Benefit Advisor can help you choose between utilizing ACERA’s MMA to offset your medical plan costs (if you’re eligible), or selecting a public healthIndividual Plans Non-Medicare MMAcare plan and utilizing the federal government’s healthcare subsidy (tax credit) to offset the costs of your plan. The level of subsidy you could be eligible for is based on your level of income. You can’t receive both an MMA from ACERA and a federal subsidy

 

Individual Plans Medicare MMA

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The MMA Will Also Cover the Medicare Part B Income-Related Monthly Adjustment Amount (IRMAA)

If you have a higher income, you’ll pay an additional premium amount for Medicare Part B and Medicare prescription drug coverage. Medicare calls the additional amount the Income-Related Monthly Adjustment Amount or IRMAA. If you are enrolled in an individual Medicare plan through Via Benefits, you can use the Monthly Medical Allowance to get reimbursed for the IRMAA. Simply log in to your account at Via Benefits and submit a reimbursement claim to Via Benefits for the additional amount IRMAA amount that is above the $174.70 base amount for 2024.

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Monthly premiums for individual Medicare plans are lower than group plan premiums, so the MMA amounts are accordingly lower.

Your MMA can be used to pay your self-only monthly medical plan premiums as well as medical or prescription copays and deductibles (our plan excludes other IRS Code Section 213(d) reimbursement expenses). You will need to submit those claims to Via Benefits for reimbursement (including Kaiser members). ACERA will fund a tax-free Health Reimbursement Account (HRA) up to the amount you are eligible for, and Via Benefits will reimburse you for expenses out of your HRA. You set up an automatic reimbursement to your bank account.

For more information on receiving reimbursements, read the Making Your Via Benefits Medicare Reimbursements Easier flyer.

Unused MMA amounts at the year’s end do not carry over into the new plan year, and do go back into ACERA’s reserve funds.