The proposed bill seeks to modernize current statutes concerning bona fide associations and accountable health plans in Arizona. It updates the definition of a bona fide association to align with the Employee Retirement Income Security Act (ERISA) criteria, replacing the previous standards set by the 2018 AHP Rule. The bill also clarifies that self-funded multiple employer welfare arrangements (MEWAs) can operate through statewide chambers of commerce or business leagues that have been maintained in good faith for at least five years and are organized for purposes other than insurance. Additionally, it introduces new definitions for terms such as "small employer," "sole proprietor," and "working owner," while ensuring that health benefits plans are accessible to all members without discrimination based on health status.

Moreover, the bill mandates the Arizona Department of Administration (ADOA) to conduct a feasibility study on state employee and public school district employee health insurance plans, focusing on individual coverage health reimbursement arrangements (ICHRAs). This study is to be funded through donations and must report its findings and recommendations by January 1, 2027, with the study requirements set to be repealed on July 1, 2027. Overall, these updates aim to enhance the flexibility and options for health insurance coverage in Arizona, while also streamlining the regulatory framework for accountable health plans.

Statutes affected:
Introduced Version: 20-2324
House Engrossed Version: 20-2324
Senate Engrossed Version: 20-2324