Explanation of Savings for 2019 Premiums

Monthly Premium




Savings Due To 3-year





Choice 1 Single




Choice 2 Single



Choice 3 Single



Navigate 1 Single




Navigate 2 Single



Navigate 3 Single



Choice Plus Single HMO (out of state)




Medicare Advantage HMO Single




Medicare Advantage PPO Single




The table shows the 2019 premiums for various Medicare and non-Medicare plans being offered. The premiums you will pay are under the column marked “NEW 2019 Premium.”

Lower Premiums

The shaded column shows the savings retirees will realize this year due to the infusion of funds from a Retrospective Rate Agreement (RRA). The first column marked “Monthly Premium Before Savings” shows the market-rate premiums without the RRA funds applied. If you compare “Monthly Premium Before Savings” to the current 2018 rates, you will notice all the premiums went down even without the RRA funds. That reduction is thanks to a combination of data-driven negotiations, plan migration (Senior Supplement to PPO), and the elimination of certain reinsurance fees.

Retrospective Rate Agreement

This is the first year the ASRS has introduced the benefits from the Retrospective Rate Agreement (RRA).

The RRA provides for a set level of retention of revenues by the health insurance provider with any surplus revenues to be returned to the ASRS. This agreement was implemented in 2011 and subsequent look-backs at revenues vs. medical costs and expenses have resulted in a return of dollars to the ASRS. The funds have been set aside to be applied to market-rate premiums, thus providing retirees a lower premium than they would otherwise be required to pay.

Each separate plan returned varying amounts, based on revenues vs. expenses of that particular plan. The vast majority of funds were derived from the Medicare plans, so the Medicare plans receive the most significant reductions of premiums from the RRA funds, with the non-Medicare plans receiving only slight offsets.

In total, ASRS retirees will save more than $37 million in medical premiums in 2019 thanks to the infusion of the RRA funds!

Going Forward

Current RRA funds are expected to be applied to offset market rate premiums this year and also in 2020 and 2021. After that, premiums will be offset by RRA funds only if new refunds are generated in future plan years.

The final premium shown here does not take into account any further reductions you may be entitled to from the Premium Benefit Program.

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