Public Employees Retirement System

PHIP subsidies

Oregon legislation has established two separate trust funds that contribute a monthly subsidy towards the cost of PHIP-sponsored medical coverage only for eligible Tier 1 and Tier 2 retirees.

PHIP will automatically apply the premium subsidy if the PERS retiree is eligible.

Verification cannot be completed until PERS finalizes the calculation of the PERS retirement benefit. Once it is established that a retiree or surviving spouse is eligible for a subsidy, premium will be adjusted and any credits to the account will be refunded.

Retirement Health Insurance Account (RHIA)

The RHIA subsidy is a $60.00 contribution that is available to Medicare entitled (enrolled in Medicare Parts A and B) retirees that are receiving either a PERS service or disability retirement allowance and have had either eight or more years of qualifying service time at retirement or is receiving a PERS disability retirement allowance that is computed as if the retiree had eight or more years of creditable service time.

A surviving spouse or dependent could be eligible to receive a subsidy if they are receiving a retirement allowance or benefit from PERS or was covered under a PHIP health plan at the time of the retiree’s death and the deceased member retired prior to May 1, 1991.

2017 RHIA Rates

Retiree Health Insurance Premium Account (RHIPA)

The RHIPA subsidy is a contribution available to non-Medicare retirees who retire from a state agency and apply for their PERS service or disability retirement allowance or benefit so that the PERS effective date is the first of the month after termination from state employment. The subsidy is based on the number of years under qualifying state service time, with the minimum required being eight years or PERS disability retirement allowance that is computed as if the retiree had eight or more years of creditable state service time and had attained the earliest service retirement age.

A surviving spouse or dependent may be eligible to receive a RHIPA subsidy if they are receiving a retirement allowance or benefit from PERS or was covered under a PHIP health plan at the time of the retiree’s death and the eligible retired state employee retired on or after September 29, 1991.

A retiree that is eligible for Medicare would no longer be eligible for RHIPA and must move to a Medicare plan. The RHIA subsidy would automatically be applied to PHIP Medicare coverage.

2017 RHIPA Rates

2018 RHIPA Rates

Per Oregon Administrative Rule (OAR) 459-035-0050 PHIP is required to determine the monthly RHIPA subsidy rates on or before November 1 of each calendar year. Stay tuned for the 2018 premium subsidy rates!