AlaskaCare family coverage will cost some retirees nearly $3,000 a month before Medicare

Defined Contribution retirees in the AlaskaCare health plan will pay as much as $2,990.13 a month for family medical coverage in 2027 if neither the retiree nor the spouse has reached Medicare age, according to premium tables posted by the Alaska Department of Administration's Division of Retirement and Benefits.

That same family coverage drops to $1,287.50 a month once both the retiree and spouse are Medicare-eligible. When only one of them qualifies for Medicare, the family premium is $2,138.53.

The Defined Contribution plan covers retirees from Public Employees' Retirement System Tier IV and Teachers' Retirement System Tier III. Those retirees pay the full monthly plan cost before they become Medicare-eligible, according to the division's retiree frequently asked questions.

A Defined Contribution retiree pays $1,203.91 a month for single coverage before Medicare age. After reaching Medicare age, that retiree pays a share of a $352.87 premium: 30 percent with 10 to 14 years of service, 25 percent with 15 to 19, 20 percent with 20 to 24, 15 percent with 25 to 29 and 10 percent with 30 or more, according to the plan booklet.

Defined Benefit retirees in PERS Tier II and III and TRS Tier II who lack system-paid medical coverage will pay $2,060 a month for family coverage in 2027.

State law requires the AlaskaCare retiree plan to become supplemental to Medicare once members turn 65. The division's October retiree newsletter says the plan begins processing claims as though members have Medicare Parts A and B on the first day of the month they turn 65.

The division advises members to apply with Social Security for Medicare Parts A and B within the three months before their 65th birthday. Medicare-eligible retirees and dependents are automatically enrolled in AlaskaCare's group Medicare drug plan and do not need an individual Part D plan, the newsletter says.

Most people qualify for premium-free Part A. Members who do not should not enroll in it. Instead, the division says, they must send a copy of their Social Security letter to the AlaskaCare health claims administrator and to the Division of Retirement and Benefits, and AlaskaCare will keep paying as the primary plan for Part A services. Retirees with questions can call the AlaskaCare Member Education Center at 800-821-2251.