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What is an HIPB?

The ASRS provides a health insurance premium benefit (HIPB), also referred to as a “subsidy” or “reimbursement,” to eligible retired and LTD participants to help cover a portion of the out-of-pocket cost of member insurance premiums. A percentage of all employer contributions are placed in a 401(a) Health Benefit Supplement account to provide funds for the HIPB.

The eligible amount of the HIPB is based on the member’s years of service with the ASRS, the medical and/or dental plan election of either single or family coverage, and whether any covered family members are eligible for Medicare.

As ASRS Employers, you're responsible to keep the ASRS up to date on retiree or LTD recipient coverage changes in order to initiate, change, or stop the HIPB. To avoid potential financial impact to the employer or retirees, if you have any questions regarding the Health Insurance Premium Benefit Program, please contact the Employer Relations Department via Employer Secure Message.

To be eligible for the benefit, an ASRS retiree or LTD recipient must:

• Be receiving a retirement or an LTD benefit, and

• Have at least five-years of ASRS service credit, and

• Purchase insurance coverage through a group health insurance plan provided by an ASRS employer or through the ASRS group health insurance program

Members who retired or became eligible for LTD on or after August 2, 2012, are eligible for the HIPB if they are enrolled in an ASRS employer’s non-subsidized active group insurance. A.R.S. § 38-783, Laws 2012, Chapter 362 (HB2745)

If you’d like additional information regarding the HIPB program, please see Chapter 9 of the Employer Manual available on the Employer Reference Materials page.

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