Why You Should Consider PERACare
According to the Milliman Retiree Health Cost Index, a healthy 65-year-old man, who retired in 2025 will spend on average $275,000 on Medicare coverage. For women, that average rises to $313,000. The bottom line: Healthcare requires a lot of savings.
PERACare is PERA’s voluntary health benefits program that offers health, dental, and vision care plans for PERA retirees and their eligible dependents. There might be benefits to enrolling in a PERACare plan that you should consider before deciding your healthcare coverage.
Subsidies
As a PERA member, the amount of service credit you have can help offset PERACare healthcare premiums. The offset amount, called a subsidy, is based on your years of service with PERA employers plus any purchased time, if applicable. If you have 20 or more years of service, you can receive up to $230/month for Pre-Medicare and $115/month for Medicare. This subsidy can only be applied to PERACare healthcare premiums, not dental or vision premiums.
To learn more about PERACare subsidies, refer to the PERACare booklets found on the “Booklets and Fact Sheets” webpage. You can also learn more through the “PERACare Subsidy” video.
PERACare Premium Payments
PERA will determine your PERACare plan premium based on the plan(s) you choose and then subtract your subsidy amount. From there, that balance will be deducted from your PERA benefit each month.
PERACare premiums are paid in advance. PERA benefits are paid on the last business day of the month. With this schedule, your PERACare premium will be deducted from the prior month’s benefit. For example, your July PERACare premium will be deducted from your June 30 benefit payment.
Enrollment
You can enroll in PERACare when you retire by submitting an enrollment form. You must submit this form within 30 days of your first benefit payment to enroll. If you enroll during this time, you can choose an effective date up to six months in the future. Note: You can select a future effective date if you will be covered by insurance in the meantime.
You can also enroll during the annual open enrollment period in the fall. During this period, you can also change plans or add coverage for a spouse or child(ren). PERACare coverage will begin on January 1.
To learn more about PERACare, visit the “Health Benefits (PERACare)” webpage. If you have questions about PERACare, attend a PERACare webinar found on the “Webinars” webpage.
Sources
Schmidt, Robert and Eric Walters. “2025 Milliman Retiree Health Cost Index.” Milliman (September 2, 2025). doi: https://www.milliman.com/en/insight/retiree-health-cost-index-2025.
