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Monthly Medical Allowance (MMA)
A Medical Plan Subsidy for Eligible Retirees

Retirees with 10 or more years of ACERA service credit or service-connected disability and who are enrolled in an ACERA-sponsored medical plan receive a Monthly Medical Allowance (MMA) to partially offset their monthly medical costs. The offset is based on years of ACERA service credit and a contribution amount determined annually by the ACERA Board of Retirement.

This benefit is only available for payment toward an ACERA-sponsored medical plan including individual plans through Via Benefits (formerly OneExchange). The cost of private insurance is not covered.

There is no MMA offset provided to:

  • Retirees with less than 10 years of ACERA service (except service-connected disability retirees)
  • Non-member payees (i.e., surviving or former spouses/domestic partners and/or beneficiaries)
  • Dependents ACERA retirees are responsible for 100% of the costs associated with covering these individuals.

The MMA is a non-vested (non-guaranteed) benefit, and is subject to available funds. Benefit levels are determined annually by the Board of Retirement.

Monthly Medical Allowance – Category 1

  • Kaiser Permanente HMO in California
  • Kaiser Permanente Senior Advantage in California
  • UnitedHealthcare HMO and PPO

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. Your monthly retirement allowance must be sufficient enough to cover the cost of your premium to enroll in a medical plan; likewise your monthly allowance must be sufficient enough to cover the cost of your dependent’s premiums or you are not able to add/enroll them.

Monthly Medical Allowance – Category 2

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

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 (including Kaiser members) for reimbursement. Unused MMA amounts at the year’s end do not carry over into the new plan year.

The MMA is prorated according to your years of ACERA service, and amounts are noted in the table below:

 2019 MMA Amounts for Category 1 & 2

Years of ACERA Service Portion of MMA MMA Amount
0-9 years No MMA $0
10-14 years 1/2 $279.00
15-19 years 3/4 $418.50
20+ years Full $558.00

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

When you call Via Benefits to explore enrolling in a non-Medicareeligible 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 healthcare 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

Monthly Medical Allowance – Category 3

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

Monthly premiums in Category 3 plans are lower than Category 1 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). Unused MMA amounts at the year’s end do not carry over into the new plan year.

 2017 & 2018 MMA for Category 3

Years of ACERA Service Portion of MMA Medicare Exchange
MMA Amount
0-9 years No MMA $0
10-14 years 1/2 $213.73
15-19 years 3/4 $320.59
20+ years Full $427.46

 

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