Employers: The ASRS Health Insurance Premium Benefit Program

The ASRS provides a health insurance premium benefit (HIPB), also referred to as a subsidy or offset, 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. 

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

    •           Be receiving a retirement or LTD benefit; and
    •           Have at least five years of ASRS credited service; and
    •           Purchase insurance coverage through a group health insurance plan provided by an ASRS employer or though the ASRS group health insurance program.

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.

It is the employer’s responsibility to keep the ASRS up to date on retiree or LTD recipient coverage changes.  For example, if a member is enrolled in the employer’s COBRA coverage and this coverage expires after 18 months, the employer must notify the ASRS of the member’s loss in coverage.  If the employer does not notify the ASRS of changes in coverage, the ASRS will continue to send the HIPB to the employer when the member is no longer eligible to receive this benefit. This will create an overpayment, which the ASRS will seek to recover. Therefore, it is  imperative that you submit a Change/Deletion form as soon as you become aware of a change in a member’s insurance coverage. 

To help employers stay in compliance and avoid an overpayment, the ASRS has provided the following forms and report to assist you:

    •        The Premium Benefit Authorization form is used to provide coverage information to the ASRS. Once the form is received, the ASRS is authorized to pay the HIPB to the former ASRS employer of eligible new retirees and new LTD participants who have insurance coverage provided by that employer.
    •        The Change/Deletion form is used to report any change in coverage after the initial Authorization form has been submitted to the ASRS.  This form is used when a retiree or LTD recipient makes changes in plan insurance providers or for qualified events such as adding and dropping dependents from coverage, death of the member, or loss in coverage.  All forms are available on the Forms & Packets page within your ASRS secure employer account.
    • The Monthly Reconciliation report is a tool for employers to track the HIPB and who is eligible to receive this benefit.  Download this report and compare the data on the report with your records and the amount of payment received from the ASRS.  This report can be located by clicking on Reports from the left side menu within your ASRS employer account.  You must have the HI Premium Benefit Specialist role in order to access the report.  See your Employer Administrator for access to this role.

Please review Chapter 9 of the Employer Manual, available on the Employer Reference Materials page, if you require more information regarding the HIPB program.

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