Retiring is a major milestone, but one of the first practical decisions you will face is how to handle your health insurance. As a member of the Arizona State Retirement System (ASRS), the process is fairly straightforward once you understand the timing, your eligibility, and how your choices affect costs.
The most important thing to keep in mind when starting the enrollment process is that your retirement is your qualifying event. You have exactly 31 days after your retirement date to submit your health insurance enrollment. Members are also permitted to submit their enrollment up to 90 days before their chosen effective date, as long as their retirement application has already been submitted. If you miss your enrollment window, you will need to wait until the annual Open Enrollment period in November or qualify for another enrollment opportunity. Qualifying events include involuntary loss of outside coverage, marriage, a move out of state, or gaining Medicare eligibility.
When it comes to medical plans, your options are based primarily on your age. Members under the age of 65 can choose from a variety of UnitedHealthcare non-Medicare plans, which function similarly to employer-sponsored coverage and typically come with higher premiums. Once you reach age 65 and become Medicare eligible, you will first need to enroll in Medicare Parts A and B. After that, you can select from one of the ASRS offered UnitedHealthcare Medicare Advantage plans.
The enrollment process can be completed entirely online through your secure myASRS account. Once logged in, you can review the plans available to you, enroll in medical and or dental coverage, add dependents, and see how much of your premium may be offset by your Premium Benefit. ASRS also offers paper enrollment options, which can be requested over the phone and sent by mail or email. Each year during Open Enrollment in November, members have the opportunity to make changes to their coverage.
The Premium Benefit can make a meaningful difference in your out-of-pocket medical and dental costs during retirement. This monthly subsidy is based on your years of service, Medicare status, and whether you cover dependents. Your subsidy is applied automatically once your retirement has been finalized. It is important to understand that this benefit is only available if you enroll in an eligible ASRS plan, an Arizona Department of Administration (ADOA) plan, or another employer-sponsored retiree plan such as COBRA. If you choose a third-party plan, you will not be eligible for the Premium Benefit.
For most new retirees, the process becomes much simpler when you focus on a few key points. Act within your enrollment window, understand how your Medicare status affects your options, and know how your Premium Benefit applies to your premiums. With a bit of preparation, you can move into retirement with confidence that your healthcare coverage is in place.
