House of Representatives

HB 2164

Retirees; health insurance subsidies

Sponsors: Brimhall

 

DPA

Committee on Retirement & Government Operations

DP

Committee on Appropriations

X

Caucus and COW

 

 

As Passed the House

 

HB 2164 modifies the health care premium subsidy for the Arizona State Retirement System (ASRS), the Public Retirement System (PSPRS), the Corrections Officer Retirement Plan (CORP) and the Elected Officials Retirement Plan (EORP) members to unspecified amounts.

 

History

 

Current law requires ASRS to administer group health and accident coverage for eligible retired and disabled members and their dependents.  There are currently four systems under their jurisdiction.  The legislature requires ASRS to pay a portion of a retired member’s health care premium.  The subsidy amount differs between the four plans, and whether or not members, survivors or dependents are eligible for medicare.  The portion of a member’s health care premium not covered by ASRS is paid from the member’s retirement benefit or out of the member’s pocket.  The premium subsidies for each plan are as follows:

 

 

ASRS

EORP

PSPRS

CORP

 

Single premium coverage

 

Single premium coverage

 

Single premium coverage

 

Single premium coverage

Member not eligible for Medicare           

  

$95

Member not eligible for Medicare

 

 $60

N/A

 

 

$82.50

Member not eligible for Medicare

 

 $95

Member eligible for Medicare    

 

$65

Member eligible for Medicare

 

$60

N/A

 

 

$82.50

Member eligible for Medicare

 

$65

 

Family Coverage Premium

 

Family Coverage Premium

 

Family Coverage Premium

 

 

Family Coverage Premium

Member and one or more dependents not eligible for Medicare 

 

$175

 

N/A

 

 

 

$85

N/A

 

 

 

$130

Members and one or more dependent not eligible 

 

$175

 

Member plus one or more dependent eligible for Medicare/ 

 

$115

N/A

 

 

 

$85

N/A

 

 

 

$130

Member and one or more dependent eligible for Medicare/

 

$115

Member and dependents eligible/ not  eligible

 

 

$145

 

N/A

 

 

 

$85

N/A

 

 

 

$130

Members and dependents eligible/not eligible

 

$145

 

Health premium eligibility differs between plans.  For example, ASRS requires at least five years of service in order to be eligible for coverage.  If the member works between five to ten years of service, the member is eligible for a proportionate share of the full subsidy.  EORP requires five to eight years of service in order for the member to be eligible for a proportionate share of the full subsidy.   These requirements do not apply to PSPRS or CORP.

 

 

Provisions

 

·        Modifies all single and family categories of the group health and accident coverage within each retired system with unspecified premium subsidy amounts.

 

·        Modifies all single and family categories within each retirement system with unspecified premium subsidy amounts through December 31, 2006 for members or survivors living in non-service areas.  Payment will not be paid upon termination of coverage under the managed care program.

 

·        Defines nonservice area as an area in the state in which ASRS, DOA, or members’ or survivors’ participating employer does not provide a managed care program for which they are eligible. 

 

·        Authorizes this act to be effective on January 1, 2001.

 

HB 2164 was amended in the Retirement and Government Operations Committee as follows:

 

·        Increases single premium coverage subsidies to the following amounts:

1.       $150 for members or survivors not eligible for Medicare.

2.      $100 for members or survivors eligible for Medicare.

·        Increases family premium coverage subsidies for all four plans to the following amounts:

1.       $260 for a member or survivor and 1 or more dependents not eligible for Medicare.

2.       $170 for a member or survivor and 1 or more dependent that are eligible for Medicare.

3.      $215 for a member or survivor when member is not eligible for Medicare and one or more dependents are eligible or member is eligible and one or more dependents are not.

·        Non-service area benefits are increased to the following amounts:

1.      $300 for a member or survivor that is not eligible for Medicare

2.      $170 for a member or survivor that is eligible for Medicare

3.      $600 if a member and one or more dependents are not eligible for Medicare

4.      $350 if a member and one or more dependents are eligible for Medicare

5.      $470 if member is not eligible and one or more dependents are eligible for Medicare or if the member is eligible and one or more dependents are not eligible for Medicare

 

·        Provides the non-service area benefits increase until December 31, 2003, rather than 2006.

·        Applies retroactively July 1,  2001.

 

HB 2164 passed the Committee on Appropriations unamended.

 

 

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45th Legislature                    

Second Regular Session        3          March 1, 2001

 

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