Choosing health insurance
When you retire you must make a decision about health insurance. Each year you have a chance to make a new choice. Your personal circumstances -- health, medications, budget -- will determine which plan among the many available is best for you.
All who retire from Arizona State University have an opportunity to continue health insurance through the Arizona State Retirement System or the Arizona Department of Administration. You have a choice of either plan regardless of the plan you had while employed and regardless of where your retirement income will come from.
There are Medicare Supplement plans for those who are Medicare-eligible.
You do not have to choose either of the state plans. Many companies offer health insurance plans for retirees that may meet your coverage and budget needs.
If you need help in identifying and comparing options suitable for your circumstances, you can
- Talk to an experienced health insurance agent who can help you navigate options
- If you are Medicare-eligible, contact Arizona's State Health Insurance Assistance Program (SHIP) for free health benefits counseling.
You will want to research the plans offered by the State of Arizona. Below are some things to know when looking into these options. Note: You can choose ASRS health insurance even if you are on an "optional retirement program".
ASRS (Arizona State Retirement System)
If you are receiving retirement income through ASRS and you choose health insurance through ASRS you are eligible for a Health Insurance Premium Benefit to supplement the cost of retiree health insurance. You may choose to have your health insurance premium deducted from your pension.
This benefit does not apply if you are receiving your retirement income from an "optional retirement program".
ADOA (Arizona Department of Administration)
There is no state subsidy for ADOA health insurance (i.e., nothing equivalent to the employer contribution that you had while employed).
If you want to keep the option open of enrolling in ADOA health insurance in the future, you should enroll in it when you retire. If you later drop the health insurance, you should maintain at least your dental coverage through ADOA. If you drop all ADOA coverage you can never re-enroll.
The ASURA health insurance liaisons monitor the two state-provided plans and provide input when new plans are under discussion.
ASURA's pre-retirement seminars cover Medicare and "what I wish I had known before retiring".
ASURA's October health insurance seminar covers up-to-date provisions of the state-provided plans and usually includes information about Medicare plans from an AARP representative.
The ASURA health insurance liaisons can provide limited personal assistance. The liaisons do not recommend one plan over another but they can and do help members understand better how to assess the merits and downsides of insurance plans.
You can find names of the current liaisons on the committee chairs page of this site, and contact information for them is in the member directory. You must be a current ASURA member to use the directory.
There are many articles available to help you become informed -- just search the internet on "health insurance for retirees".
None of the following articles recommends a specific health insurance carrier, but all help you understand how to find and select a health insurance plan that meets your needs.
- Ultimate Guide to Retirement - Health Insurance. An article from CNN Money all about health insurance when you retire.
- How Do I Get Health Insurance When I Retire? In addition to basic information and advice, this article mentions the option of talking to a health insurance agent.
- A Guide to Health Insurance for Retirees. In addition to basic information and advice, this article mentions Health Savings Accounts.
- Your Bridge to Medicare. This talks about choices if you retire before age 65, and how to transition to Medicare when you become eligible
- How do Medicare Advantage Plans work? This article from medicare.gov explains what Medicare Advantage plans are, how they work, and how they differ from basic Medicare plans.
- What's Medicare Supplement Insurance (Medigap)? This article should probably be read as a companion to the previous article. It explains what a supplement plans are and the differences between Medicare Advantage and Medicare Supplement plans.