Does Oregon PERS help with retiree health insurance?
Yes, in two ways. Oregon PERS runs its own retiree plans, PHIP, for Medicare and pre-Medicare retirees and their families. And Tier One and Tier Two retirees with at least 8 years who are on Medicare get up to $60 a month toward a PHIP Medicare plan. OPSRP members can join PHIP but the sources describe no subsidy for them. Oregon PERS Employer Guide Ch. 1 (Sept. 2026), p. 29; ORS 238.420
Which program you're in decides this; see Tier One, Tier Two or OPSRP.
PHIP
Oregon PERS Health Insurance Program (PHIP): Medicare and non-Medicare medical and dental plans for retirees, spouses and eligible dependents; pre-Medicare retirees should compare employer retiree plans. Oregon PERS Tier One/Tier Two Preretirement Guide (June 2026), p. 20; Oregon PERS Employer Guide Ch. 1 (Sept. 2026), p. 29
- PHIP can cover retirees receiving a benefit, their spouses and dependents, and the surviving spouse or dependents of a retiree or of a member who had reached earliest retirement age. Premiums can be deducted from your monthly benefit.ORS 238.410(1)(b), (4)
- If you're not yet eligible for Medicare, Oregon PERS says its plans may not be your best option: your employer's plans for retirees may have better benefits and premiums, so ask about them.Oregon PERS Tier One/Tier Two Preretirement Guide (June 2026), p. 20
- For benefits, eligibility, enrollment, subsidies and plan rates, Oregon PERS points to pershealth.com or Oregon PERS Health at 800-768-7377.Oregon PERS Employer Guide Ch. 1 (Sept. 2026), p. 29
RHIA: $60 a month
Retiree Health Insurance Account: $60 a month (or the premium, if less) toward a PHIP Medicare plan for Tier One/Tier Two retirees with 8+ years of qualifying service (wait time counts) who are Medicare-eligible. Oregon PERS Employer Guide Ch. 1 (Sept. 2026), p. 29, Subsidies; ORS 238.420(1)-(3)
- Tier One/Tier Two retirees with 8 or more years who are on Medicare and in a PHIP Medicare plan get up to $60 a month toward the premium (RHIA).Oregon PERS Employer Guide Ch. 1 (Sept. 2026), p. 29; ORS 238.420
- RHIA pays $60 a month or the whole premium of the PHIP Medicare plan, whichever is less. You pay anything above that, and Oregon PERS may deduct it from your monthly benefit. The RHIA payment is exempt from all state, county and municipal taxes.ORS 238.420(3); ORS 238.410(4)
- RHIA also covers a surviving spouse or dependent of an eligible retiree who is on Medicare and receiving an Oregon PERS benefit, and disability retirees whose pension is figured as if they had 8 or more years.ORS 238.420(1)
If you're a few years short of 8, one more year can matter for this as well as for the pension. Medicare itself is covered under Social Security: Medicare withholding is mandatory for public employees.
RHIPA
Retiree Health Insurance Premium Account: for state retirees not yet eligible for Medicare, based on state service time (Tier One/Tier Two); can be several hundred dollars a month. Not for school district retirees per the source's wording. Oregon PERS Employer Guide Ch. 1 (Sept. 2026), p. 29
- Check with Oregon PERSA separate subsidy (RHIPA) helps state retirees not yet on Medicare, based on state service.Oregon PERS Employer Guide Ch. 1 (Sept. 2026), p. 29Amounts and whether non-state (school district) service counts are not in the saved sources.
- Under the statute, RHIPA is for a retiree who was a state employee at retirement, had 8 or more years of qualifying service, has reached earliest service retirement age and isn't yet eligible for Medicare.ORS 238.415(1)(b)
RHIPA, a bigger subsidy for retirees not yet on Medicare, is described only for state retirees with state service. The sources don't give amounts.
What we use: nothing: the calculator shows only RHIA ($60).
OPSRP
The RHIA/RHIPA subsidies are described for Tier One and Tier Two retirees only. Oregon PERS Employer Guide Ch. 1 (Sept. 2026), p. 29
- Oregon PERS offers retiree medical and dental plans through the Oregon PERS Health Insurance Program (PHIP).Oregon PERS Employer Guide Ch. 1 (Sept. 2026), p. 29
Premiums can come out of your monthly benefit, so the net check is lower than the pension the Oregon PERS calculator shows. If you go back to work after retiring, see working after retirement.
Questions
Does Oregon PERS offer retiree health insurance?
Yes. The Oregon PERS Health Insurance Program (PHIP) has Medicare and pre-Medicare medical and dental plans for retirees, their spouses and eligible dependents.
What is RHIA?
Tier One and Tier Two retirees with 8+ years who are on Medicare and in a PHIP Medicare plan get up to $60 a month toward the premium (the whole premium if it's less). The payment is exempt from Oregon state and local taxes.
Do school district retirees get RHIPA?
Not according to the statute's wording: RHIPA is for retirees who were state employees when they retired and aren't yet on Medicare. Oregon PERS's guide words it the same way.
Do OPSRP retirees get a subsidy?
The sources describe the RHIA and RHIPA subsidies for Tier One and Tier Two only. OPSRP retirees can still join PHIP.
Should I use PHIP before Medicare?
Compare first. Oregon PERS says your employer's plans for retirees not yet on Medicare may have better benefits and premiums.
Source: Oregon PERS Tier One/Tier Two and OPSRP Preretirement Guides, Published June 2026, Oregon PERS Tier One/Tier Two Preretirement Guide (June 2026) p. 20; Oregon PERS Employer Guide Ch. 1 (Sept. 2026) p. 29; ORS 238.410, 238.415, 238.420. Last reviewed .