Medical Subsidies: Monthly Medical Allowance (MMA)

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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.

Who is Eligible?

  • ACERA retirees with 10+ years ACERA service credit (receive MMA based on years of service credit)
  • Service-connected disability retirees (receive full MMA)

Who is Not Eligible?

  • Retirees with less than 10 years of ACERA service (except service-connected disability retirees)
  • Spouses and dependents
  • Non-member payees (i.e., survivors, former spouses)

ACERA retirees are responsible for 100% of the costs to cover these individuals.

Group Plans MMA

For Plans

  • Kaiser Permanente HMO in California
  • Kaiser Permanente Senior Advantage in California (Medicare)
  • UnitedHealthcare SignatureValue HMO
  • UnitedHealthcare SignatureValue Advantage HMO

MMA Will Cover

  • Monthly premiums
Years of ACERA Service Portion of MMA MMA Amount
< 10 years No MMA $0
10+ years 1/2 $289.33
15+ years 3/4 $433.99
20+ years Full $578.65

More Info

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.

 

Individual Plans Non-Medicare MMA

For Plans

  • Via Benefits Individual Non-Medicare Plans 
  • Kaiser Permanente Non-Medicare Plans Outside California

MMA Will Cover

  • Monthly premiums
  • Copays
  • Deductibles
Years of ACERA Service Portion of MMA MMA Amount
< 10 years No MMA $0
10+ years 1/2 $289.33
15+ years 3/4 $433.99
20+ years Full $578.65

More Info

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 Reimbursements Easier Flyer.

Unused MMA amounts at the year’s end do not carry over into the new plan year.

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

For Plans

  • Via Benefits Medicare Plans
  • Kaiser Permanente Senior Advantage Medicare plans outside California

MMA Will Cover

  • Monthly premiums
  • Copays
  • Deductibles
Years of ACERA Service Portion of MMA MMA Amount
0-9 years No MMA $0
10-14 years 1/2 $221.64
15-19 years 3/4 $332.46
20+ years Full $443.28

More Info

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 Reimbursements Easier Flyer.

Unused MMA amounts at the year’s end do not carry over into the new plan year.