AZ Rev Stat § 38-782 (2021)
2021 Arizona Revised Statutes|Title 38 - Public Officers and Employees|§ 38-782 - Group health and accident coverage for retired public employees and elected officials and their dependents; definition

38-782.  Group health and accident coverage for retired public employees and elected officials and their dependents;  definition A. The board shall establish group health and accident coverage for eligible retired members,  surviving dependents and members with a disability and their dependents. The board may establish a self-insurance program for the purposes of this subsection if the board determines that self-insuring would be less expensive than and at least as effective as a fully insured plan,  while considering the risks and costs. If the board establishes a self-insurance program,  the board shall provide that the self-insurance program include all health coverage benefits that are required pursuant to title 20. ASRS shall establish a separate account for any self-insurance program established pursuant to this section in an amount determined appropriate by ASRS. ASRS shall not use or divert any part of the corpus or income of the account for any purpose other than to provide benefits and to pay the administration costs for the self-insurance program pursuant to this section or the premium payments pursuant to section 38-783 unless the board determines that a self-insurance program should no longer be offered. If a self-insurance program is no longer offered,  monies in the account shall be used to provide any remaining benefits and to pay administration costs for the self-insurance program pursuant to this section or the premium payments pursuant to section 38-783. If the liabilities of ASRS to provide the benefits under the self-insurance program and the premium payments pursuant to section 38-783 are satisfied,  the board shall return any remaining monies in the account to the employer. If an insured retired member or member with a disability dies before the insured member's dependent beneficiary or an insured surviving dependent,  the dependent beneficiary or insured surviving dependent is entitled to coverage at group rates if the dependent beneficiary or surviving dependent elects to continue in the coverage within six months of the insured member's death and the dependent beneficiary or surviving dependent agrees to pay the cost of the premium for group health and accident insurance. On notification of the insured member's death,  the board shall immediately notify a dependent beneficiary or an insured surviving dependent of the provisions of this section. B. Retired members of the public safety personnel retirement system,  the public safety personnel defined contribution retirement plan established pursuant to article 4.1 of this chapter,  the elected officials' retirement plan,  the elected officials' defined contribution retirement system established pursuant to article 3.1 of this chapter,  the corrections officer retirement plan or the optional retirement programs authorized pursuant to sections 15-1451 and 15-1628 and their dependents who are receiving benefits from the public safety personnel retirement system,  the public safety personnel defined contribution retirement plan established pursuant to article 4.1 of this chapter,  the elected officials' retirement plan,  the elected officials' defined contribution retirement system established pursuant to article 3.1 of this chapter,  the corrections officer retirement plan or the optional retirement programs authorized pursuant to sections 15-1451 and 15-1628 and who are not covered by section 38-651.01 may participate in group health and accident coverage provided pursuant to this section. On the death of an insured member of the public safety personnel retirement system,  the public safety personnel defined contribution retirement plan established pursuant to article 4.1 of this chapter,  the elected officials' retirement plan,  the elected officials' defined contribution retirement system established pursuant to article 3.1 of this chapter,  the corrections officer retirement plan or the optional retirement programs authorized pursuant to sections 15-1451 and 15-1628,  the insured surviving dependent is entitled to coverage at group rates. Except as provided in subsection H of this section,  the surviving dependent shall be charged amounts that are sufficient to pay for the premium and administrative expense of providing the coverage. C. The board may enter into agreements with retired members,  surviving dependents and members with a disability of ASRS and retired members of the elected officials' defined contribution retirement system established pursuant to article 3.1 of this chapter who elect to obtain the coverage provided pursuant to subsection A of this section. Those agreements may include provisions for the deduction from the retirement benefits of the members who elect to obtain the coverage of amounts sufficient to pay for the premium not covered under retirement benefits and the administrative expense of providing the coverage. D. The board of trustees of the public safety personnel retirement system may enter into agreements with retired members of the public safety personnel retirement system,  the elected officials' retirement plan,  the corrections officer retirement plan and their dependents who elect to obtain the coverage provided pursuant to this section. Those agreements may include provisions for the deduction from the retirement benefits of the members who elect to obtain the coverage of amounts sufficient to pay for the premium not covered under their retirement benefits and the administrative expense of providing the coverage. E. The board may enter into agreements with retired members of the optional retirement programs authorized pursuant to sections 15-1451 and 15-1628 and their dependents who elect to obtain the coverage provided pursuant to this section. Those agreements may include provisions for the payment of amounts sufficient to pay for the premium and administrative expense of providing the coverage. F. If an insured member receiving long-term disability benefits pursuant to article 2.1 of this chapter becomes ineligible for the long-term disability benefits,  the member and the covered dependents of the member may continue to participate in the group health and accident coverage provided pursuant to this section subject to the following conditions: 1. Participation in the coverage is limited to twelve months from the date the member ceases eligibility for benefits under article 2.1 of this chapter or the member commences employment,  whichever occurs first. 2. The member shall pay the full premium cost of the coverage selected,  and the member is not eligible for benefits pursuant to section 38-783. 3. If a member who participates in the coverage dies during the twelve-month period provided by this subsection,  covered dependents of the member may continue coverage after the death of the member through the end of the twelve-month period. Covered dependents of the member who continue coverage pursuant to this paragraph shall pay the full premium cost of the coverage selected and are not eligible for benefits pursuant to section 38-783. G. Retired members,  surviving dependents or members with a disability who are not eligible for medicare,  who live in this state,  who enroll in a qualifying health maintenance organization under this section and who reside outside the area of a qualifying health maintenance organization shall be offered the option of enrolling with a qualified health maintenance organization offered through their provider under the same premiums as if they lived within the area boundaries of the qualified health maintenance organization provided that: 1. All medical services are rendered and received at an office designated by the qualifying health maintenance organization or at a facility referred by the health maintenance organization. 2. All nonemergency or nonurgent travel,  ambulatory and other expenses from the residence area of the member to the designated office of the qualifying health maintenance organization or the facility referred by the health maintenance organization are the responsibility of and at the expense of the member. 3. All emergency or urgent travel,  ambulatory and other expenses from the residence area of the member to the designated office of the qualifying health maintenance organization or the facility referred by the health maintenance organization shall be paid pursuant to any agreement between the health maintenance organization and the member living outside the area of the qualifying health maintenance organization. H. Public monies shall not be spent to pay all or any part of the insurance premium pursuant to this section except for monies authorized to be paid for any insured from the retirement plan from which the insured is receiving benefits. I. A retired member of the elected officials' defined contribution retirement system established pursuant to article 3.1 of this chapter may elect to obtain the coverage provided pursuant to subsection A of this section,  but shall pay the premium for the coverage selected and is not eligible for benefits pursuant to section 38-783 or 38-817. J. For the purposes of this section,  " eligible retired member,  surviving dependent and member with a disability"  means a retired member who is receiving retirement benefits from ASRS,  a designated beneficiary of a deceased member who is receiving a survivor benefit pursuant to section 38-762,  subsection C as monthly income or a member with a disability who is receiving long-term disability benefits pursuant to section 38-651.03 or article 2.1 of this chapter,  and who does not otherwise elect to obtain coverage under a group health and accident insurance plan or program.