House of Representatives

HB 2164

Retirees; health insurance subsidies

Sponsors: Brimhall

 

DPA

Committee on Retirement & Government Operations

DP

Committee on Appropriations

DPA

Caucus and COW

 

X

As Transmitted to the Governor

 

HB 2164 increases the health insurance premium subsidy for Arizona State Retirement System (ASRS), Public Retirement System (PSPRS), Corrections Officer Retirement Plan (CORP) and Elected Officials Retirement Plan (EORP) members. 

 

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

 

·        Increases all single and family categories of the health insurance premium subsidy for all four state retirement systems, retroactively July 1, 2001 as follows:

1.      Member not eligible for Medicare:                           $150.00

2.      Member eligible for Medicare:                                $100.00          

3.      Family Coverage—Member &                              

dependent not eligible for Medicare:                   $260.00

4.      Family Coverage—Member &                              

dependent eligible for Medicare:                              $170.00

5.      Family Coverage—Either Member or                    

dependent not eligible for Medicare:                        $215.00

 

·        Appropriates $542,000 from the state retirement fund in FY 2001-2002 to ASRS for the administration of this act.

 

·        States that the administration appropriation is exempt from lapsing, except all unencumbered or unexpended monies by June 30, 2003 revert to the state retirement fund. 

 

 

 

 

 

 

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45th Legislature                    

Second Regular Session        3          May 3, 2001

 

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