The board pays part of the premium for health and accident insurance for a retired member, contingent annuitant, or member with a disability who is covered by ASRS's plan, the state plan (A.R.S. 38-651.01), or an employer-provided or employer-paid plan. A contingent annuitant must be receiving a monthly ASRS benefit. ASRS Premium Benefit page, 'Premium Benefit: Determine Your Amount' table; A.R.S. 38-783(A)-(C)
At least 5 years of service credit, and coverage through an ASRS retiree plan, another eligible Arizona retirement system group plan, or an ASRS employer's non-subsidized retiree or COBRA coverage. Not available with private or Federal Marketplace plans. Paid to the insurer or plan, never more than the premium. ASRS Premium Benefit page; ASRS Employer Basics 2025, p. 13; A.R.S. 38-783(A), (D)
Most ASRS pays each month
ASRS's current table, by years of service in tenths of a year. It matches the statute's 'up to' amounts and the 50%-90% schedule.
| Years | Share | Not on Medicare | On Medicare |
|---|---|---|---|
| 5 to 5.9 | 50% | $75 | $50 |
| 6 to 6.9 | 60% | $90 | $60 |
| 7 to 7.9 | 70% | $105 | $70 |
| 8 to 8.9 | 80% | $120 | $80 |
| 9 to 9.9 | 90% | $135 | $90 |
| 10+ | 100% | $150 | $100 |
| Years | No one on Medicare | All on Medicare | Some on Medicare |
|---|---|---|---|
| 5 to 5.9 | $130 | $85 | $107.50 |
| 6 to 6.9 | $156 | $102 | $129 |
| 7 to 7.9 | $182 | $119 | $150.50 |
| 8 to 8.9 | $208 | $136 | $172 |
| 9 to 9.9 | $234 | $153 | $193.50 |
| 10+ | $260 | $170 | $215 |
Under 5 years: nothing. ASRS Premium Benefit page, 'Premium Benefit: Determine Your Amount' table; A.R.S. 38-783(A)-(C)
Rules to know
- Each eligible retiree gets the greater of two single premium benefits or one family premium benefit (two retirees on single plans: $150 + $150 = $300, more than the $260 family amount). ASRS Premium Benefit page, FAQ; ASRS Session 4, p. 10; A.R.S. 38-783(B)
- Paid only for full months of coverage. ASRS HIPB conference slides, PDF p. 6
- Amounts are 'up to' the stated figure: the board pays part of the premium and never more than the statutory amount. A.R.S. 38-783(A), (D)
- If both spouses are ASRS retirees and apply for family coverage, the electing member gets the payment as if both applied for single coverage, unless the family amount is greater. A.R.S. 38-783(B)
- For retirements on or after Aug. 2, 2012: no payment while enrolled in an employer's active-employee group plan, except that a dependent in an unsubsidized active-employee plan gets the single (subsection A) amount. ASRS Employer Basics 2025, p. 13; A.R.S. 38-783(E)
- Since Jan. 1, 2004, a retiree choosing a joint and survivor or term certain option (not straight life) may elect a reduced premium benefit that can continue to the beneficiary. The reduction depends on both ages; the retiree may cancel it in writing at any time and return to the unreduced amount. ASRS Premium Benefit page, Optional Health Insurance Premium Benefit; A.R.S. 38-783(H)-(J)
- A contingent annuitant must have been enrolled in an eligible plan at the retiree's death and be a dependent beneficiary or insured surviving dependent under 38-782. A.R.S. 38-783(L)
- Payment is subordinate to retirement benefits and paid from a separate account. A.R.S. 38-783(F)-(G)
- Credited service includes prior service before membership in the ASRS defined contribution program. A.R.S. 38-783(M)(3)-(4)
From ASRS and the law
- With 10+ years, ASRS pays up to $150 a month toward your own health premium ($100 if you are on Medicare), if you are covered by an ASRS retiree plan or an ASRS employer's non-subsidized retiree or COBRA plan. Private and Federal Marketplace plans don't qualify.ASRS Premium Benefit page, table; ASRS Employer Basics 2025, p. 13; A.R.S. 38-783(A)
- Family coverage: up to $260 a month if no one is on Medicare, $170 if all are, and $215 if some are.ASRS Premium Benefit page, table; A.R.S. 38-783(B)
- With 5 to 9.9 years of service you get 50% to 90% of those amounts, by tenths of a year (5.0-5.9 years: 50%); under 5 years, nothing.ASRS Premium Benefit page, table; A.R.S. 38-783(C)
- If you retired on or after Aug. 2, 2012, no premium benefit is paid while you are on an employer's active-employee group plan.ASRS Employer Basics 2025, p. 13; A.R.S. 38-783(E)
- If you choose a survivor or period-certain option, you can also elect an optional, reduced premium benefit that can continue to your contingent annuitant. You must choose it when you retire.ASRS Premium Benefit page, Optional Health Insurance Premium Benefit; A.R.S. 38-783(H)-(J)
- Each retiree gets the greater of two single premium benefits or one family premium benefit, and the benefit is paid only for full months of coverage.ASRS Premium Benefit page, FAQ; ASRS Session 4, p. 10; ASRS HIPB conference slides, PDF p. 6; A.R.S. 38-783(B)
The optional premium benefit needs a joint and survivor or period-certain payment option. If you go back to an ASRS job with active-employee coverage, see working after retirement. Increases to the pension itself are on the COLA page.
Questions
Does ASRS pay for retiree health insurance?
ASRS pays part of the premium if you have 5+ years and coverage through an ASRS retiree plan or an ASRS employer's non-subsidized retiree or COBRA plan (ASRS Premium Benefit page; ASRS Employer Basics 2025, p. 13; A.R.S. 38-783(A), (D)). With 10 or more years, the most is $150 a month for single coverage if you are not on Medicare (ASRS Premium Benefit page, 'Premium Benefit: Determine Your Amount' table; A.R.S. 38-783(A)-(C)).
My spouse and I are both ASRS retirees. What do we get?
Each eligible retiree gets the greater of two single premium benefits or one family premium benefit (two retirees on single plans: $150 + $150 = $300, more than the $260 family amount). (ASRS Premium Benefit page, FAQ; ASRS Session 4, p. 10; A.R.S. 38-783(B))
Does a Marketplace plan count?
No. ASRS says the premium benefit is not available with private or Federal Marketplace plans (ASRS Premium Benefit page; ASRS Employer Basics 2025, p. 13; A.R.S. 38-783(A), (D)).
How many years do I need?
At least 5. From 5 to under 10 years you get part of the full amount (ASRS Premium Benefit page, 'Premium Benefit: Determine Your Amount' table; A.R.S. 38-783(A)-(C)).
Is the premium benefit paid to me in cash?
No. It is paid toward the premium, never more than the premium itself, and only for full months of coverage (A.R.S. 38-783(A), (D); ASRS HIPB conference slides, PDF p. 6).
Source: ASRS Employer Basics 2025 handbook, March 2025 edition, saved Nov. 12, 2026; with other ASRS publications and the Arizona Revised Statutes, p. 13. Also ASRS Basics for Employers, Session 4: Health Insurance Premium Benefit (slides), p. 10. Also 2025 ASRS Employer Conference: Health Insurance Premium Benefit (slides), PDF p. 6. Also ASRS web page: Retiree Health Insurance Premium Benefit and Optional Health Insurance Premium Benefit. Also A.R.S. 38-783 (Arizona Revised Statutes, Title 38, Ch. 5, Art. 2). Last reviewed .