One of our advisors sat down with a retiring City of Scottsdale employee not long ago. Twenty years on the job. When he retired, he enrolled in the ASRS group Medicare Advantage plan because that is what the city told him was available. He never looked at anything else.
Most municipal employees do the same thing. ASRS offers a group Medicare Advantage plan for retirees, and people assume that is their only option. Or their best option.
When our advisor walked him through what the open market actually offered side by side, he leaned back in his chair and said what almost every city employee says at that moment: "That's insane. I had no idea."
He is not unusual. We sit down with City of Scottsdale employees, City of Goodyear employees, school district retirees, and state workers regularly. The pattern is nearly always the same.
What Most City Employees Do Not Realize About Their ASRS Plan
The ASRS group Medicare Advantage plan is a real Medicare plan. It works. But it is one option among many, and most retirees never compare it to what is available on the open market.
Here is what surprises people when they finally run the numbers:
- The ASRS group Medicare Advantage plan is not always the cheapest option. When you compare the total cost of the ASRS plan (premiums, copays, out-of-pocket maximums) against a Medicare Supplement like Plan G plus a standalone Part D drug plan, the open market often comes out ahead. Sometimes significantly.
- Network restrictions can limit your doctors. One Scottsdale retiree told us his number one priority was keeping his Mayo Clinic doctors. His ASRS Medicare Advantage plan had network restrictions he had not considered. A Medicare Supplement gave him the freedom to see any doctor who accepts Medicare, anywhere in the country. No referrals. No network.
- The ASRS plan can change every year. Benefits, networks, copays, and formularies are subject to annual enrollment changes. We have called clients specifically to walk them through changes to their ASRS Medicare Advantage plan because the annual adjustments caught them off guard.
- Travel coverage may be limited. If you spend summers out of state (and in Arizona, plenty of retirees do), a group Medicare Advantage plan may not cover you well outside its service area. A Medicare Supplement works nationwide.
- Covering a younger spouse adds real cost. If your spouse is not yet 65 and you are keeping them on coverage through ASRS, the premiums can be substantial. One city employee we worked with had serious sticker shock when he saw what it cost to cover his 60-year-old wife.
The "Stay or Go" Comparison
We call it the "stay or go" analysis. It is a side-by-side comparison of your ASRS group Medicare Advantage plan versus what you could get on the open market, whether that is a Medicare Supplement, a different Medicare Advantage plan, or a combination with a standalone Part D.
Our advisors do this with a fact-based, math-based approach. No opinions. No sales pitch. Just the numbers.
Here is what we typically compare:
- Monthly premium: ASRS group MA plan vs. Medicare Supplement + Part D (or individual MA plan)
- Out-of-pocket maximums and deductibles
- Doctor and hospital access: network restrictions vs. open access
- Prescription drug coverage and formulary differences
- Travel and out-of-state coverage
- Spousal coverage costs
For one Scottsdale retiree, the math was clear: a Medigap Plan G with a standalone Part D plan cost less every month AND gave him open access to Mayo Clinic and any specialist he wanted nationwide. He enrolled the same week.
For another city employee, the ASRS plan actually was the better deal for his situation. That happens too. The point is not that one option is always better. The point is that most people never compare.
And here is something a lot of people do not realize: you do not have to take all or nothing. Some ASRS retirees move their medical coverage to the open market but keep their ASRS dental and vision benefits, which are often better than what you can find individually. You can mix and match to get the best of both worlds.
Three Things Every City of Scottsdale Employee Should Do Before Retiring
1. Get the details on your ASRS group Medicare Advantage plan. Know the premium, the copay structure, the network, and the out-of-pocket maximum. Most employees have never seen these numbers broken out clearly next to an alternative.
2. Compare it to the open market. A fact-based comparison of your ASRS group plan against Medicare Supplement options and individual Medicare Advantage plans takes about 30 minutes and can save you thousands per year.
3. Do it before you retire, not after. The best time to evaluate your options is 6 to 12 months before your last day. Some Medicare enrollment windows are time-sensitive, and missing them can mean limited choices or gaps in coverage.
Why This Matters Right Now
If you are approaching retirement from the City of Scottsdale, or any Arizona municipality, this is the window where a little homework pays off the most. Most people land in the ASRS group Medicare Advantage plan by default and never look back. Some of them are leaving money on the table. Some of them are giving up doctor access they did not have to lose.
We have a dedicated team that works specifically with ASRS retirees and City of Scottsdale employees on exactly this comparison. The conversation is straightforward: we look at what your group plan offers, what the open market offers, and which path actually costs less while giving you better coverage.
No pressure. Just the math.
If you are a City of Scottsdale employee approaching retirement and want to see how your ASRS group Medicare Advantage plan compares to the open market, our team can walk you through it. Call us at (602) 281-3898 or visit americanretirementadvisors.com to schedule a consultation at no cost to you.
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This article is for educational purposes only and does not constitute tax, legal, or investment advice. Consult your own advisors regarding your specific situation. Medicare has costs and limitations. ASRS benefits vary by employer and plan year.