ARIZONA STATE SENATE
Phoenix, Arizona
CORP; retirees; health
insurance subsidy
Changes, to an unspecified
amount, the healthcare premium subsidy paid to retirees by the Corrections Officer
Retirement Plan (CORP).
Currently, the CORP fund manager pays a portion of a member’s group health and accident insurance premium up to $95.50 per month for a member or survivor who is not eligible for Medicare, and up to $65 per month if the member or survivor is eligible for Medicare. Additionally, $175 is paid for dependent coverage when no one is eligible for Medicare, and $115 if all of them are eligible for Medicare. Finally, the fund manager must pay $145 if either the retired member or survivor of the plan is not eligible for Medicare and one or more dependents are eligible for Medicare or if the retired member or survivor is eligible for Medicare and one or more of the dependents are not. These numbers have not been adjusted since l997. However, premium costs of healthcare insurance have risen substantially since this time. Many retired members of CORP must use all or most of their monthly pension amount in order to cover the rising cost of healthcare insurance.
It is undetermined at this time what the increased cost of insurance will be, therefore, the amount has been left unspecified.
Provisions
1. Changes, from up to $95 to an unspecified amount, the monthly payment to each retired CORP member or survivor who is not eligible for Medicare.
2. Changes, from $65 to an unspecified amount, the monthly payment to each retired CORP member or survivor who is eligible for Medicare.
3. Changes, from up to $175 to an unspecified amount, the monthly payment to each retired CORP member or survivor and dependents who are not eligible for Medicare.
4. Changes, from up to $115 to an unspecified amount, the monthly payment to each retired CORP member or survivor and dependents when all of them are eligible for Medicare.
5. Changes, from up to $145 to an unspecified amount, the monthly payment to each retired CORP member or survivor and dependents when one or more of them are eligible for Medicare.
6. Provides for a general effective date.
Prepared by Senate Staff
January 18, 2001