State retirees will not pay more for health insurance, says a senator who recently received a briefing by the Arizona State Retirement System (ASRS).

“This is good news for rural retirees from cities, counties and schools,” Sen. Marsha Arzberger, D-25, said. “The Arizona State Retirement System changed the process by which it evaluates and designs requests for proposals during the past three years, so that consideration was given to availability of health care and affordability for rural retirees. The change was called for in part by legislation pushed by Ms. Arzberger and other rural legislators.

The cost of health premiums for rural retirees will not increase when a state subsidy for them expires June 30. Contract negotiations with PacifiCare of Arizona allows ASRS retirees to keep the same medical plans with no increase in premium and no decrease in plan benefits through Dec. 31, 2006.

“In 2001, I introduced the bill, and the Legislature passed a subsidy for rural retirees,” Ms. Arzberger said. “At that time, premiums for rural retirees were considerably higher than urban ones. This inequity was corrected by the subsidy, but it was intended to be a temporary solution. From July 2005 through December 2006, premium costs are nearly equal in rural and urban areas.” —