The Health Options Program (HOP)
PSERS sponsors the Health Options Program (HOP): voluntary group health insurance for retirees, spouses, survivor annuitants and dependents, financed by participant premiums. Enroll within 180 days of a qualifying event (retiring or losing school-employer coverage including COBRA, involuntary loss of non-school coverage, you or spouse reaching 65 or Medicare eligibility, family status change, new Premium Assistance eligibility, plan termination/move). Premiums are generally deducted from the monthly benefit. Annual option selection normally early October to November 15. HOP Administration Unit 1.800.773.7725, hopbenefits.com. PSERS web page Health Insurance (fetched 2026-11-11); Retired Member Handbook (3/2014), pp. 12-13
Premium Assistance
The $100-a-month Premium Assistance cap comes from PSERS's 2014 retiree handbook. The current web page says only that the legislature sets the amount.
We show up to $100 a month, labeled as needing a check.
Retired Member Handbook (3/2014), p. 14Who qualifies
You qualify if any one of these fits you. The ages differ by membership class:
- Any membership class with at least 24 1/2 eligibility points regardless of age.
- T-C/T-D: terminated on or after age 62 with at least 15 eligibility points, effective date of retirement after age 62.
- T-E/T-F: terminated on or after age 65 with at least 15 eligibility points, effective date of retirement after age 65.
- T-G/T-H: terminated on or after age 67 with at least 15 eligibility points, effective date of retirement after age 67.
- Receiving a disability benefit from PSERS.
- Class DC: at least 24 1/2 eligibility points, terminated, eligible for Medicare, and received all or part of distributions.
- Class DC: at least 15 eligibility points, terminated on or after age 67 and received all or part of distributions.
PSERS web page Health Insurance (fetched 2026-11-11), Premium Assistance eligibility (i)-(vii)
The 2014 handbook says 'age 62 or older on your date of termination'. The current web page also requires a retirement date after that age and counts eligibility points.
We use the current web page's wording.
PSERS web page Health Insurance (Nov. 2026)Conditions
Must have an out-of-pocket premium for your own basic health coverage through HOP or a PA public school group plan. Not payable for separate dental, vision or drug plans, for spouse/dependent premiums, when the employer pays the full cost, or for premiums paid with pre-tax or non-taxed funds. Cannot exceed actual out-of-pocket cost; not taxable income. Added to the monthly benefit. Not available to surviving spouses, dependents or other beneficiaries. PSERS web page Health Insurance (fetched 2026-11-11); Retired Member Handbook (3/2014), pp. 14-15; Let's Talk About PSERS Death Benefits (Mar. 2025), p. 9 Premium Assistance isn't taxable income; see taxes.
Questions: Premium Assistance Unit 1.866.483.5509. Retired Member Handbook (3/2014), p. 15
What PSERS says
- PSERS sponsors the Health Options Program (HOP), voluntary group health insurance for retirees, spouses, survivor annuitants and dependents, paid for by participants' premiums. You can join within 180 days of a qualifying event such as retiring or reaching 65.PSERS web page Health Insurance (Nov. 2026)
- Premium Assistance helps pay your own health premium through HOP or a PA public school group plan if you have 24 1/2 eligibility points, or 15 points and left at age 62 (T-C, T-D), 65 (T-E, T-F) or 67 (T-G, T-H), or you get a PSERS disability benefit.PSERS web page Health Insurance (Nov. 2026)
- Check with PSERSPremium Assistance pays your actual out-of-pocket premium up to $100 a month and is not taxable. It doesn't cover dental, vision or drug-only plans, family members' premiums, or survivors.Retired Member Handbook (3/2014), pp. 14-15; Let's Talk About PSERS Death Benefits (Mar. 2025), p. 9The $100 cap is from the 2014 handbook; the current web page says only that the legislature sets the amount.
PSERS's Retired Member Handbook is dated March 2014, before Classes T-G and T-H existed. Rules that appear only there may be out of date.
We label facts taken only from it.
Retired Member Handbook (3/2014), coverQuestions
Does PSERS provide health insurance in retirement?
PSERS sponsors the Health Options Program (HOP), voluntary group coverage paid for by participants' premiums. It is not free.
How much is PSERS Premium Assistance?
It pays your actual out-of-pocket premium for your own coverage, up to $100 a month according to PSERS's 2014 retiree handbook. PSERS's current web page says only that the legislature sets the amount. Check with PSERS.
Who qualifies for Premium Assistance?
Any membership class with at least 24 1/2 eligibility points regardless of age. T-C/T-D: terminated on or after age 62 with at least 15 eligibility points, effective date of retirement after age 62. T-E/T-F: terminated on or after age 65 with at least 15 eligibility points, effective date of retirement after age 65. T-G/T-H: terminated on or after age 67 with at least 15 eligibility points, effective date of retirement after age 67. Receiving a disability benefit from PSERS. Class DC: at least 24 1/2 eligibility points, terminated, eligible for Medicare, and received all or part of distributions. Class DC: at least 15 eligibility points, terminated on or after age 67 and received all or part of distributions.
Related: Medicare eligibility is a HOP qualifying event; see PSERS and Social Security.
Source: PSERS Active Member Handbook, Current pa.gov edition (PDF revised Sept. 2023). Also: PSERS web page Health Insurance. Also: Retired Member Handbook (3/2014), pp. 12-15. Also: Let's Talk About PSERS Death Benefits (Mar. 2025), p. 9. Last reviewed .