HB 2089 Arizona House · 57th Legislature - Second Regular Session

ASRS; premium payment

HB 2089 modifies Arizona's State Retirement System (ASRS) to provide premium assistance for health insurance coverage for retirees and disabled members. It sets monthly payments from ASRS assets: up to $150 for single coverage (non-Medicare, ≥10 years service), $100 for Medicare-eligible single coverage, and higher family coverage amounts ($260-$215) based on Medicare status. Retirees with less than 10 years of service receive reduced percentages (50%-90%) of these amounts. The bill establishes a separate ASRS account solely for these benefits, ensuring funds aren’t diverted from other retirement obligations. It directly affects ASRS retirees, disabled members, and their dependents who elect ASRS health coverage or employer-provided plans.

Issues: ✓ Healthcare

Bill status signed all 5 stages cleared

Introduction

Dec 2025

Committee Review

Mar 2026

House Passage

Feb 2026

Senate Passage

Apr 2026

Signed into Law

Apr 2026

Introduced Dec 23, 2025 Signed Apr 13, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

House Engrossed Version (02/19/2026) → Chaptered Version · 5 edits

MODERATE

The bill was formally enacted into law as Chapter 39 and includes significant substantive additions to the Arizona State Retirement System (ASRS) health insurance premium subsidy statute. The most important change is the addition of new subsections H through L, which establish specific rules for members who elect to receive their health insurance premium benefits as a lifetime annuity or a fixed-term payment rather than a monthly subsidy. The bill also adds new definitions for 'prior service' and clarifies the treatment of forfeited account interests.

Scope change

The scope of the bill was expanded by adding new provisions regarding optional premium benefit payment forms (lifetime annuity vs. fixed term) and clarifying definitions related to service credit and account forfeitures.

REQUIREMENT

Added new subsections H and I detailing how members can elect to receive health insurance premium benefits as a lifetime annuity or a fixed-term payment (5, 10, or 15 years) instead of a monthly subsidy.

Added new subsections J through L to define eligibility restrictions for contingent annuitants receiving optional premium benefits and to specify how forfeited account interests must be applied to reduce future employer contributions.

DEFINITION

Added new definitions for 'prior service' and 'subsidized' to clarify eligibility calculations and premium payment structures.

TIMELINE

The document reflects the final 'Chaptered Version' dated April 13, 2026, indicating the bill has been signed by the Governor and became law.

TECHNICAL

Removed the 'House Engrossed' header and draft formatting markers, replacing them with official chapter designation and final enactment language.

Floor votes · Senate Apr 7, 2026 · House Feb 19, 2026

How they voted

29–0

Passed · 1 other

Total votes 30

Apr 7, 2026

D Democratic13

13 Yea

100% Yea

R Republican17

16 Yea 1

94% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 13, 2026

Signed into law

Signed by Governor

executive

Apr 7, 2026

Upper · Passed

PASSED

upper

Mar 9, 2026

Upper · Passed

upper

Feb 19, 2026

Lower · Passed

PASSED

lower

Feb 18, 2026

Lower · Passed

lower

Feb 4, 2026

Lower · Passed

lower

1 primary · 0 co-sponsors