The proposed bill would update current statutes by redefining the qualifications for bona fide associations in relation to self-funded multiple employer welfare arrangements (MEWAs). Specifically, it would replace the existing criteria established by the 2018 AHP Rule with a new definition of "employer" as per the Employee Retirement Income Security Act (ERISA). The bill also clarifies that bona fide associations can operate self-funded MEWAs 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 Additionally, it removes outdated language regarding "path 1" and "path 2" bona fide associations, streamlining the qualifications for associations offering health benefits.

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 will assess various aspects such as coverage options and costs, with a report due by January 1, 2027. The ADOA will be allowed to accept donations to support the study, and the requirements for the feasibility study will be repealed after June 30, 2027. Overall, these updates aim to enhance health insurance coverage options in Arizona while ensuring non-discriminatory access to health benefits through bona fide associations.

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