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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
ASRS; premium payment
Purpose
Defines active employee group health and accident insurance program for the purposes of clarifying which individuals are entitled to receive a health insurance premium subsidy.
Background
The Arizona State Retirement System (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 ASRS or non-subsidized coverage through their ASRS employer are eligible for a monthly premium benefit which ranges from $50 to $260 per month, depending upon years of service and coverage selected (ASRS).
For a member who retires from ASRS on or after August 2, 2012, the ASRS Board may not pay a health insurance premium subsidy to a retired member, contingent annuitant or member with a disability who is enrolled in an employer's active employee group health and accident insurance program either as the insured or as a dependent. If the retired member, contingent annuitant or member with a disability is enrolled as a dependent and the active employee group health and accident insurance program premium is not subsidized by the employer, the retired member, contingent annuitant or member with a disability is entitled to receive the health insurance premium subsidy (A.R.S. § 38-783).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Defines active employee group health and accident insurance program as a group health and accident insurance program provided by the employer that the member is enrolled in as an employee of an employer or as the dependent of an employee of an employer.
2. Makes conforming changes.
3. Becomes effective on the general effective date.
House Action
WM 2/4/26 DP 9-0-0-0
3rd Read 2/19/26 55-0-5
Prepared by Senate Research
February 25, 2026
MG/ci