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Retiree Health Insurance Premium Benefit and Optional Health Insurance Premium Benefit Programs

Retiree Health Insurance Premium Benefit Program

As part of your benefits, the ASRS provides a health insurance premium benefit to supplement the cost of retiree health insurance. Retirees with five or more years of credited service who have health insurance through the ASRS or non-subsidized coverage through their ASRS employer are eligible for a monthly premium benefit, which is paid to the health insurer or your former employer. The Premium Benefit ranges from $75 to $260 per month, depending upon years of service and coverage selected. The Health Insurance Premium Benefit also applies to retirees participating in the ASRS health insurance plans from the Elected Officials’ Retirement Plan, Corrections Officer Retirement Plan and the Public Safety Personnel Retirement System. The Premium Benefit is not available with private or Federal Marketplace insurance plans.

Optional Health Insurance Premium Benefit Program

Effective January 1, 2004, a new ASRS retiree has a one-time opportunity at retirement to elect to receive a reduced premium benefit that, upon his or her death, may be continued to the retiree’s beneficiary. The optional premium benefit is designed for retirees whose spouse or dependents will want to continue with ASRS insurance upon the retiree’s death and want to continue receiving assistance paying for it. To determine the retirees reduced premium benefit amount you can use the online benefit estimator in your myASRS account or refer to the Calculating Your Premium Benefit page.

Certain restrictions apply:

  • Optional Premium Benefit is only available to retirees who elect a Joint and Survivor or Term Certain annuity option.
  • Not available with Straight Life Annuity.
  • The Optional Premium Benefit reduction is based on the age of the retiree and the primary beneficiary. You can estimate your reduction by using the Online Benefit Estimator in your secure myASRS account.
  • The beneficiary must either be participating or eligible to participate in the retiree’s health care program at the time of the retiree’s death.
  • The reduced premium benefit will remain in effect as long as the beneficiary receives a monthly pension benefit and remains enrolled in an eligible health care plan.
  • And, the retiree may cancel this election in writing at any time and be eligible for the unreduced premium benefit.

Calculating Your Optional Premium Benefit

Frequently Asked Questions

How is the Premium Benefit disbursed?

If eligible, the Premium Benefit is applied first to dental, then to medical premiums.

Both my spouse and I are ASRS retirees, how can we maximize our premium benefit amount?

The ASRS Premium Benefit Program provides the greater of 2 single premium benefits or 1 family premium benefit to each eligible retiree. You can receive the greatest use of the premium benefit program with both of you enrolling in single medical plan coverage and one enrolling in a dental plan choosing family coverage.

Does the Premium Benefit apply to Affordable Care Act or Private Insurance plans?

No. You must be enrolled in insurance through the ASRS, other eligible Arizona retirement system group plan, or your ASRS employers non-subsidized retiree or COBRA insurance to receive the Premium Benefit.

How do I determine my current health insurance out-of-pocket costs?

Login to your myASRS secure account and click on the “Medical/Dental Insurance Details” link to see your current ASRS or ASRS employer retiree medical and dental plan, monthly premiums, premium benefit and your net cost.

What if my monthly health insurance premiums exceed my monthly pension?

If your pension does not cover your net insurance costs, the insurance carrier(s) will mail a bill directly to you. It will be your responsibility to pay premiums directly to the insurance carrier(s). Direct bills are mailed at the end of the month and due by the 25th of the following month.

What happens if I fail to pay my insurance premium direct bill?

Your health insurance coverage will be terminated. If you wish to re-instate coverage, you must pay any remaining balance in full and wait for our annual Open Enrollment period to enroll.

 

Basic Premium Benefit Amounts

Notes: The ASRS Premium Benefit is only available to reduce medical and dental premiums on qualifying plans. Your eligible Premium Benefit is applied to dental first, if applicable, with the remainder going toward medical premiums.

 WITHOUT MEDICAREWITH MEDICARE A & BCOMBINATIONS
Years
of Service
Retiree  OnlyRetiree & 
Dependents
Retiree OnlyRetiree & 
Dependents
Retiree & Dependents One with Medicare, the other(s) without

Retiree & Dependent with Medicare other dependents without

Arizona State Retirement System (ASRS) Members
5.0-5.9$75.00$130.00$50.00 $85.00$107.50$107.50
6.0-6.9$90.00$156.00$60.00 $102.00 $129.00 $129.00 
7.0-7.9$105.00 $182.00$70.00 $119.00 $150.50 $150.50 
8.0-8.9$120.00$208.00$80.00 $136.00 $172.00 $172.00 
9.0-9.9$135.00$234.00$90.00 $153.00 $193.50 $193.50 
10.0+$150.00$260.00 $100.00 $170.00 $215.00 $215.00 
Elected Officials' Retirement Plan (EORP) Members
5.0-5.9$90.00 $156.00$60.00$102.00 $129.00$129.00 
6.0-6.9$112.00 $195.00 $75.00 $127.50 $161.25 $161.25 
7.0-7.9$135.00 $234.00 $90.00 $153.00 $193.00 $193.50 
8.0-8.9$150.00 $260.00 $100.00 $170.00 $215.00 $215.00 
Corrections Officer Retirement Plan (CORP) Members
not applicable$150.00$260.00$100.00$170.00$215.00$215.00
Public Safety Personnel Retirement System (PSPRS)
not applicable$150.00$260.00$100.00$170.00$215.00$215.00
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