SB1421 - 502R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Delayed repeal

Section 20‑1379, Arizona Revised Statutes, is repealed from and after June 30, 2013.

Sec. 2. Section 20-1380, Arizona Revised Statutes, is amended to read:

START_STATUTE20-1380. Guaranteed renewability of individual health coverage; certificate of creditable coverage; definitions

A. Except as provided in this section, on request of the insured individual, a health care insurer that provides individual health coverage to the individual shall renew or continue that coverage.

B. A health care insurer may nonrenew or discontinue the health insurance coverage of an individual in the individual market only for one or more of the following reasons:

1. The individual has failed to pay premiums or contributions pursuant to the terms of the health insurance coverage or the health care insurer has not received premium payments in a timely manner.

2. The individual has performed an act or practice that constitutes fraud or has made an intentional misrepresentation of material fact under the terms of the coverage.

3. The health care insurer has ceased to offer new coverage and has discontinued all in-force coverage in the individual market pursuant to subsection D of this section.

4. If the health care insurer offers health care coverage through a network plan in this state, the individual no longer resides, lives or works in the service area or in an area served by the network plan for which the health care insurer is authorized to do business but only if the coverage is terminated uniformly without regard to any health status‑related factor of any covered individual.

5. If the health care insurer offers health coverage in the individual market only through one or more bona fide associations, the membership of an individual in the association has ceased but only if that coverage is terminated uniformly without regard to any health status‑related factor of any covered individual.

C. If a health care insurer decides to discontinue offering a particular policy form offered in the individual market, the health care insurer may discontinue that policy form only if:

1. The health care insurer provides notice to the director at least five business days before the health care insurer gives notice to each individual covered under that policy form of the intention to discontinue offering that policy form in this state.

2. The health care insurer provides notice to each individual who is covered by that policy form in the individual market at least ninety days before the date of the discontinuation of that policy form.

3. The health care insurer offers to each individual in the individual market whose coverage is discontinued pursuant to this subsection the option to purchase all other individual health insurance coverage currently offered by the health care insurer for individuals in that market.

4. In exercising the option to discontinue that type of coverage and in offering the option of coverage prescribed in paragraph 3 of this subsection, the health care insurer acts uniformly without regard to any health status‑related factor of enrolled individuals or individuals who may become eligible for that coverage.

D. If a health care insurer elects to discontinue offering all health insurance coverage in the individual market in this state, the health care insurer may discontinue that coverage only if all of the following occur:

1. The health care insurer gives notice to the director at least five business days before the health care insurer gives notice to each individual of the intention to discontinue offering health insurance coverage in the individual market in this state.

2. The health care insurer provides notice to each individual of that discontinuation at least one hundred eighty days before the date of the expiration of that coverage.

3. The health care insurer discontinues all individual insurance or coverage that was issued or delivered for issuance in this state and does not renew any coverage that was offered or sold in this state.

E. If the health care insurer discontinues offering health insurance coverage pursuant to subsection D of this section, the health care insurer shall not issue any health insurance coverage in this state in the individual market for five years after the date that the last individual health insurance coverage was not renewed.

F. Subsection C of this section does not apply if the health care insurer modifies the health coverage at the time of renewal and that modification is otherwise consistent with this title and effective on a uniform basis among all individuals covered by that policy form.

G. A health care insurer shall provide the certification described in section 20‑2310, subsection G if the individual:

1. Ceases to be covered under a policy offered by a health care insurer or otherwise becomes covered under a COBRA continuation provision.

2. Who was covered under a COBRA continuation provision ceases to be covered under the COBRA continuation provision.

3. Requests certification from the health care insurer within twenty‑four months after the coverage under a policy offered by a health care insurer ceases.

H. The director may use independent contractor examiners pursuant to sections 20‑148 and 20‑159 to review the higher level of coverage and lower level of coverage policy forms offered by a health care insurer in compliance with this section and section 20‑1379. All examination and examination related expenses shall be borne by the insurer and shall be paid by the insurance examiners' revolving fund pursuant to section 20‑159.

G. A health care insurer shall provide, without charge, a written certificate of creditable coverage as described in this section for creditable coverage occurring after June 30, 1996 if the individual:

1. Ceases to be covered under a policy offered by a health care insurer. An individual who is covered by a policy that is issued on a group basis by a health care insurer, that is terminated or not renewed at the choice of the sponsor of the group and for which the replacement of the coverage is without a break in coverage is not entitled to receive the certification prescribed in this paragraph but is instead entitled to receive the certification prescribed in paragraph 2 of this subsection.

2. Requests certification from the health care insurer within twenty‑four months after the coverage under a health insurance coverage policy offered by a health care insurer ceases.

H. The certificate of creditable coverage provided by a health care insurer is a written certification of the period of creditable coverage of the individual under the health insurance coverage offered by the health care insurer. The department may enforce and monitor the issuance and delivery of the notices and certificates by health care insurers as required by this section, the health insurance portability and accountability act of 1996 (P.L. 104-191; 110 Stat. 1936) and any federal regulations adopted to implement the health insurance portability and accountability act of 1996.

I. Any health care insurer, accountable health plan or other entity that issues health care coverage in this state, as applicable, other than the assigned risk health insurance program, shall issue and accept a certificate of creditable coverage of the individual that contains at least the following information:

1. The date that the certificate is issued.

2. The name of the individual or dependent for whom the certificate applies and any other information that is necessary to allow the issuer providing the coverage specified in the certificate to identify the individual, including the individual's identification number under the policy and the name of the policyholder if the certificate is for or includes a dependent.

3. The name, address and telephone number of the issuer providing the certificate.

4. The telephone number to call for further information regarding the certificate.

5. ONe of the following:

(a) A statement that the individual has at least eighteen months of creditable coverage. For the purposes of this subdivision, "eighteen months" means five hundred forty-six days.

(b) Both the date that the individual first sought coverage, as evidenced by a substantially complete application, and the date that creditable coverage began.

6. The date creditable coverage ended, unless the certificate indicates that creditable coverage is continuing from the date of the certificate.

7. The consumer assistance telephone number for the department.

8. The following statement in at least fourteen point type:

Important Notice!

Keep this certificate with your important personal records to protect your rights under the health insurance portability and accountability act of 1996 ("HIPAA"). This certificate is proof of your prior health insurance coverage. You may need to show this certificate to have a guaranteed right to buy new health insurance from the assigned risk health insurance program ("guaranteed issue"). This certificate may also help you avoid waiting periods or exclusions for preexisting conditions. Under HIPAA, these rights are guaranteed only for a very short time period. After your group coverage ends, you must apply for new coverage within sixty-three days to be protected by HIPAA. If you have questions, call the Arizona Department of insurance.

J. A health care insurer has satisfied the certification requirement under this section if the insurer offering the health benefits plan provides the certificate of creditable coverage pursuant to this section within thirty days after the event that triggered the issuance of the certificate.

K. Periods of creditable coverage for an individual are established by the presentation of the certificate described in this section and section 20‑2310. In addition to the written certificate of creditable coverage as described in this section, individuals may establish creditable coverage through the presentation of documents or other means. In order to make a determination that is based on the relevant facts and circumstances of the amount of creditable coverage that an individual has, the assigned risk health insurance program shall take into account all information that the insurer obtains or that is presented to the insurer on behalf of the individual.

L. the assigned risk health insurance program shall calculate creditable coverage according to the rules prescribed by the director under chapter 23 of this title.

M. This section applies to all health insurance coverage that is offered, sold, issued, renewed, in effect or operated in the individual market after June 30, 1997, regardless of when a period of creditable coverage occurs.

N. For the purposes of this section:

1. "Bona fide association" means, for health care coverage issued by a health care insurer, an association that meets the requirements of section 20‑2324.

2. "Creditable coverage" has the same meaning prescribed in section 20‑3301.

3. "Genetic information" means information about genes, gene products and inherited characteristics that may derive from the individual or a family member, including information regarding carrier status and information derived from laboratory tests that identify mutations in specific genes or chromosomes, physical medical examinations, family histories and direct analyses of genes or chromosomes.

4. "Health care insurer" means a disability insurer, group disability insurer, blanket disability insurer, health care services organization, hospital service corporation, medical service corporation or hospital, medical, dental and optometric service corporation.

5. "Health status-related factor" means any factor in relation to the health of the individual or a dependent of the individual enrolled or to be enrolled in a health care insurer, including:

(a) Health status.

(b) A medical condition, including physical and mental illness.

(d) Receipt of health care.

(e) Medical history.

(f) Genetic information.

(g) Evidence of insurability, including conditions arising out of acts of domestic violence as defined in section 20‑448.

(h) The existence of a physical or mental disability.

6. "individual health insurance coverage" means health insurance coverage offered by a health care insurer to individuals in the individual market but does not include limited benefit coverage or short-term limited duration insurance. A health care insurer that offers limited benefit coverage or short-term limited duration insurance to individuals and no other coverage to individuals in the individual market is not a health care insurer that offers health insurance coverage in the individual market.

7. "limited benefit coverage" has the same meaning prescribed in section 20‑1137.

8. "Network plan" means a health care plan provided by a health care insurer under which the financing and delivery of health care services are provided, in whole or in part, through a defined set of providers under contract with the health care insurer pursuant to the determination made by the director pursuant to section 20‑1053 regarding the geographic or service area in which a health care insurer may operate.

9. "Short‑term limited duration insurance" means health insurance coverage that is offered by a health care insurer, that remains in effect for no more than one hundred eighty-five days, that cannot be renewed or otherwise continued for more than one hundred eighty days and that is not intended or marketed as health insurance coverage subject to guaranteed issuance or guaranteed renewal provisions of the laws of this state but that is creditable coverage within the meaning of this section and section 20‑2301. END_STATUTE

Sec. 3. Delayed repeal

Sections 20‑1381 and 20‑1382, Arizona Revised Statutes, are repealed from and after June 30, 2013.

Sec. 4. Title 20, Arizona Revised Statutes, is amended by adding chapter 23, to read:

CHAPTER 23

ASSIGNED RISK HEALTH INSURANCE PROGRAM

ARTICLE 1. GENERAL PROVISIONS

START_STATUTE20-3301. Definitions

A. In this chapter, unless the context otherwise requires:

1. "Affiliation period" has the same meaning prescribed in section 20‑2301.

2. "Bona fide association" means, for health care coverage issued by a health care insurer, an association that meets the requirements of section 20‑2324.

3. "Church plan" has the same meaning prescribed by ERISA.

4. "Creditable coverage" means coverage, other than limited benefit coverage as defined in section 20‑1137, solely for an individual under any of the following:

(a) An employee welfare benefit plan that provides medical care to employees or the employees' dependents directly or through insurance or reimbursement or otherwise pursuant to ERISA.

(b) A church plan.

(d) Medicare.

(e) Title XIX of the social security act, other than coverage consisting solely of benefits under section 1928.

(f) Title 10, chapter 55 of the United States Code.

(g) A medical care program of the indian health service or of a tribal organization.

(h) A health benefits risk pool operated by any state of the United States.

(i) A health plan offered pursuant to title 5, chapter 89 of the United States Code.

(j) A public health plan as defined by federal law.

(k) A health benefit plan pursuant to section 5(e) of the peace corps act (P.L. 87-293; 75 stat. 612; 22 United States Code sections 2501 through 2523).

(l) A policy or contract, including short-term limited duration insurance, issued on an individual basis by an insurer, a health care services organization, a hospital service corporation, a medical service corporation or a hospital, medical, dental and optometric service corporation or made available to persons defined as eligible under section 36‑2901, paragraph 6, subdivision (b), (c), (d) or (e).

(m) A policy or contract issued by a health care insurer or an accountable health plan to a member of a bona fide association.

(n) the state children's health insurance program established by title xxi of the social security act.

5. "Delinquency proceeding" has the same meaning prescribed in section 20‑611.

6. "Department" means the department of insurance.

7. "Dependent" means any of the following:

(a) A resident spouse.

(b) A resident unmarried child who is under nineteen years of age.

(d) A resident child who is at least nineteen years of age and who is and continues to be both incapable of self-sustaining employment by reason of mental retardation or physical handicap and chiefly dependent on the parent for support or maintenance.

8. "ENROLLMENT DATE" MEANS THE FIRST day of coverage or, if there is a waiting period, the first day of the waiting period. The first day of coverage for an individual enrolling in a group plan is the first day of coverage under the group health plan. the first day of coverage in the case of an individual covered by health insurance in the individual market is the first day of coverage under the policy or contract.

9. "ERISA" means the employee retirement income security act of 1974 (P.L. 93-406; 88 stat. 829; 29 United States Code sections 1001 through 1461).

10. "Genetic information" means information about genes, gene products and inherited characteristics that may derive from the individual or a family member, including information regarding carrier status and information derived from laboratory tests that identify mutations in specific genes or chromosomes, physical medical examinations, family histories and direct analyses of genes or chromosomes.

11. "Government plan" has the same meaning prescribed by ERISA and any federal government plan.

12. "Group health plan" means an employee welfare benefit plan as defined in section 3 (1) of ERISA to the extent that the plan provides medical care and includes items and services paid for as medical care to employees or their dependents as defined under the terms of the plan directly or through insurance or reimbursement or otherwise.

13. "Health care insurer" means a disability insurer, group disability insurer, blanket disability insurer, health care services organization, accountable health plan, hospital service corporation, medical service corporation or hospital, medical, dental and optometric service corporation that provides health insurance in this state.

14. "Health care plan" means a health care insurer that offers health insurance or a self‑insured health plan. Health care plan does not include medicare, medicaid or any governmental plan, except a plan established or maintained for its employees by the government of the United States or by any agency or instrumentality of the United States.

15. "Health insurance" means a licensed health care plan or arrangement that pays for or furnishes medical or health care services and that is issued by a health care insurer. Health insurance does not include long-term care insurance, limited benefit coverage as defined in section 20‑1137, short-term insurance, credit insurance, coverage issued as a supplement to liability insurance, insurance arising out of workers' compensation coverage, automobile medical payments coverage or insurance under which benefits are payable with or without regard to fault and that is statutorily required to be contained in any liability insurance policy or equivalent self-insurance.

16. "Medical care" means amounts paid for any of the following:

(a) The diagnosis, care, mitigation, treatment or prevention of disease or amounts paid for the purpose of affecting any structure or function of the human body.

(b) Transportation primarily for and essential to medical care under subdivision (a) of this paragraph.

17. "Medicare" means coverage under both parts a and b of title XVIII of the social security act (42 United States Code sections 1395 through 1395ggg), as amended.

18. "PREEXISTING CONDITION" means a physical or mental condition, regardless of the cause of the condition, for which medical advice, diagnosis, care or treatment was recommended or received within the twenty‑four month period ending on the enrollment date.

19. "Preexisting Condition Exclusion" means a limitation or exclusion of benefits relating to a preexisting condition based on the fact that the condition was present before the first day of coverage, whether or not any treatment was recommended or received before that day. A preexisting condition exclusion includes any exclusion applicable to an individual as a result of a pre-enrollment questionnaire or physical examination given to the individual, or a review of medical records relating to the pre-enrollment period.

20. "Program" means assigned risk health insurance program.

21. "Resident" means an individual who is legally domiciled in this state for a period of at least thirty days, except that for an eligible individual, the thirty day requirement does not apply.

22. "Short-term limited duration insurance" means health insurance coverage that is offered by a health care insurer, that remains in effect for no more than one hundred eighty-five days, that cannot be renewed or otherwise continued for more than one hundred eighty days and that is not intended or marketed as health insurance coverage subject to guaranteed renewal provisions of the laws of this state but that is creditable coverage within the meaning of this section and section 20‑2301.

23. "Significant break in coverage" means a period of sixty-three consecutive days during all of which the individual does not have any creditable coverage, except that neither a waiting period nor an affiliation period is taken into account in determining a significant break in coverage.

24. "WAITING PERIOD" MEANS, FOR A PERSON SEEKING COVERAGE UNDER A GROUP HEALTH PLAN, THE PERIOD THAT MUST PASS BEFORE COVERAGE FOR AN EMPLOYEE OR DEPENDENT WHO IS OTHERWISE ELIGIBLE TO ENROLL CAN BECOME EFFECTIVE. IN THE INDIVIDUAL MARKET, A WAITING PERIOD BEGINS ON THE DATE THE INDIVIDUAL SUBMITS A SUBSTANTIALLY COMPLETE APPLICATION FOR COVERAGE. IN THE INDIVIDUAL MARKET, THE WAITING PERIOD ENDS, IN THE CASE OF AN APPLICATION THAT RESULTS IN COVERAGE, on THE DATE COVERAGE BEGINS. IN THE CASE OF AN APPLICATION THAT DOES NOT RESULT IN COVERAGE, THE WAITING PERIOD ENDS ON THE DATE THE APPLICATION IS DENIED BY THE ISSUER OR THE DATE THE OFFER OF COVERAGE LAPSES. END_STATUTE

START_STATUTE20-3302. Assigned risk health insurance program; report

A. The assigned risk health insurance program is established in the department of insurance. The director shall appoint a manager or committee to assign eligible individuals to participating health care plans pursuant to section 20‑3303.

B. On or before June 30 of each year, the department shall submit a report to the governor, the president of the senate and the speaker of the house of representatives and shall provide a copy to the secretary of state. The report shall summarize activities of the program in the preceding calendar year, including program enrollment, the net written and earned premiums, expense of administration and paid and incurred losses. END_STATUTE

START_STATUTE20-3303. Assignment; health care plans; appeals; premiums

A. After consultation with health care plans in this state, the director shall approve a reasonable plan for the equitable apportionment among the health care plans of eligible uninsurable individuals and federally qualified eligible individuals.

B. After a plan has been approved, all health care plans in this state shall subscribe to and participate in the plan. Assignments made under this section shall be based on the size of the health care insurer, demonstrated through reported premium.

C. An eligible uninsurable individual or federally qualified eligible individual who is assigned to a risk plan under this section and an affected health care insurer may appeal to the director of the department of insurance from any ruling or decision of the manager or committee designated to operate the plan. Within ten days after notice of an order or act of the director, a person who is aggrieved by the order or act may file a petition in the superior court in the county in which the director is domiciled against the director for a review of the order or act. The court shall summarily hear the petition and may make any appropriate order or decree.

D. The health care plan must offer the eligible individual coverage in its two most popular individual market policies or designate two policies that are similar to other policies the health care plan sells in the individual market. If the health care plan does not have an individual product, the health care plan may match an applicable policy of one of the top three health care plans in the individual market.

E. Premiums charged to uninsurable individuals and federally qualified eligible individuals may not exceed one hundred fifty per cent of the premium for the applicable standard risk rate that would apply to the coverage in this state. The department shall determine a standard risk rate by considering the premium rates charged for similar benefits and cost‑sharing by health care insurers offering health insurance coverage to individuals in this state. The standard risk rate shall be established using reasonable actuarial techniques that reflect anticipated experience and expenses. Premium rates may vary based on age, gender and geographical location and may apply to individual risks.END_STATUTE

START_STATUTE20-3304. Eligibility

From and after June 30, 2013, uninsurable individuals as described in section 20‑3305 and federally qualified eligible individuals as described in section 20‑3306 are eligible for program coverage. END_STATUTE

START_STATUTE20-3305. Eligibility for uninsurable individuals

A. From and after june 30, 2013, An individual is uninsurable and eligible for program coverage if the individual is and continues to be a resident of this state and provides evidence of rejection or refusal to issue health insurance for health reasons by two health care insurers in this state within the past year. A rejection or refusal by a health care insurer that offers only stop loss, excess of loss or reinsurance coverage with respect to the applicant is not sufficient evidence of rejection or refusal.

B. from and after june 30, 2013, An individual is not eligible for program coverage pursuant to subsection a of this section if:

1. The individual has or obtains health insurance coverage or would be eligible for health insurance coverage if the individual elected to obtain it, except that an individual may maintain program coverage for the period of time the individual is satisfying a preexisting condition waiting period under another health insurance policy.

2. The individual is eligible for health care benefits under title 36, chapter 29, medicare or any other government program.

3. The individual voluntarily terminated health insurance coverage unless twelve months have passed since the termination.

4. The individual is an inmate or resident of a public institution.

5. The individual's health care plan premiums are paid for or reimbursed under any government sponsored program or by any government agency.

C. from and after june 30, 2013, Except under the circumstances described in subsection b of this section, an individual who ceases to meet the eligibility requirements of this section may be terminated at the end of the policy period for which the necessary premiums have been paid.

d. from and after june 30, 2013, Notwithstanding subsection a of this section, an individual is an eligible individual if:

1. The individual is an individual enrollee in a health care services organization that is domiciled in this state on the date that the health care services organization is declared insolvent, including any health care services organization that is not an accountable health plan as defined in section 20‑2301.

2. The individual's coverage terminates during the delinquency proceeding, after the health care services organization is declared insolvent.

3. The individual satisfies the requirements of an eligible individual as prescribed in this section other than the required period of creditable coverage.

e. from and after june 30, 2013, Notwithstanding subsection a of this section, a newborn child of an eligible individual, adopted child of an eligible individual or child placed for adoption with an eligible individual is an eligible individual if the child was enrolled within THIRTY days and otherwise would have met the definition of an eligible individual as prescribed in this section other than the required period of creditable coverage and the child is not subject to any preexisting condition exclusion or limitation if the child has been covered under health insurance coverage or a health benefits plan offered by an accountable health plan since birth, adoption or placement for adoption with no significant break in coverage. END_STATUTE

START_STATUTE20-3306. Eligibility standards for federally qualified individuals

A. from and after june 30, 2013, An individual is a federally qualified individual and eligible for program coverage if all the following apply:

1. The individual has not experienced a significant break in coverage.

2. The individual continues to be a resident of this state.

3. The individual has an aggregate period of creditable coverage as defined and calculated pursuant to this article of at least eighteen months.

4. The most recent creditable coverage for the individual was under a plan offered by:

(a) An employee welfare benefit plan that provides medical care to employees or the employees' dependents directly or through insurance or reimbursement or otherwise pursuant to ERISA.

(b) A church plan.

(c) A government plan, including a plan established or maintained for its employees by the government of the United States or by any agency or instrumentality of the united states.

(d) An accountable health plan as defined in section 20‑2301.

(e) A plan made available to a person defined as eligible pursuant to section 36-2901, paragraph 6, subdivision (d) or a dependent pursuant to section 36-2901, paragraph 6, subdivision (e) of a person eligible under section 36-2901, paragraph 6, subdivision (d), if the person was most recently employed by a business in this state with at least two but not more than fifty full‑time employees.

(f) A federal preexisting condition insurance plan.

5. The individual is not eligible for coverage under:

(a) an employee welfare benefit plan that provides medical care to employees or the employees' dependents directly or through insurance or reimbursement or otherwise pursuant to ERISA.

(b) a health benefits plan issued by an accountable health plan as defined in section 20-2301.

(d) title 36, chapter 29, except coverage to persons defined as eligible under section 36-2901, paragraph 6, subdivisions (b), (c), (d) and (e), or any other plan established under title xix of the social security act, and the individual does not have other health insurance coverage.

6. The most recent coverage within the coverage period was not terminated based on any factor described in section 20‑2309, subsection b, paragraph 1 or 2 relating to the individual's nonpayment of premiums or fraud.

7. The individual was offered, elected the option of and exhausted continuation coverage under a cobra continuation provision pursuant to the consolidated omnibus budget reconciliation act of 1985 (P.L. 99-272; 100 stat. 82) or a similar state program.

b. from and after june 30, 2013, Notwithstanding subsection a of this section, a newborn child of an eligible individual, adopted child of an eligible individual or child placed for adoption with an eligible individual is an eligible individual if the child was enrolled within thirty days and otherwise would have met the definition of an eligible individual as prescribed in this section other than the required period of creditable coverage and the child is not subject to any preexisting condition exclusion or limitation if the child has been covered under health insurance coverage or a health benefits plan offered by an accountable health plan since birth, adoption or placement for adoption with no significant break in coverage. END_STATUTE

START_STATUTE20-3307. Dependent coverage

from and after june 30, 2013, Each dependent of an eligible uninsurable individual or a federally qualified eligible individual is eligible for program coverage at the program premiums established pursuant to section 20‑3303. The parent shall furnish proof of incapacity and dependency to the program within thirty‑one days after the child attains nineteen years of age and subsequently as the program requires, but not more frequently than annually. END_STATUTE

START_STATUTE20-3308. Cessation of coverage

Program coverage ceases:

1. On the date an individual is no longer a resident of this state.

2. On the date an individual requests coverage to end.

3. On the death of the covered individual.

4. On the date state law requires cancellation of the policy.

5. At the option of the health care plan, thirty days after the health care plan makes any inquiry concerning the individual's eligibility or place of residence to which the individual does not reply.

6. On the date an individual's coverage has lapsed due to failure to pay premiums, subject to any grace period provided by the health care plan.

7. On the date a health care plan has paid out one million dollars in benefits on behalf of the individual. The department may increase this amount for program coverage if the increase applies uniformly to all INDIVIDUALs in a specific policy offering under the program and without regard to health STATUS. END_STATUTE

START_STATUTE20‑3309. Premium tax exemption

Health care plans are exempt from the premium taxes that are required by section 20‑224, subsection B and sections 20‑837, 20‑1010 and 20‑1060 for the net premiums received for health insurance issued under this chapter to eligible uninsurable individuals and federally qualified eligible individuals. END_STATUTE

START_STATUTE20-3310. Program termination

The program established by this chapter ends on January 1, 2024 pursuant to section 41‑3102.END_STATUTE

Sec. 5. Eligibility of individuals who have portable coverage

Notwithstanding section 20‑3304, Arizona Revised Statutes, as added by this act, an individual and the individual's dependents who have coverage as of the effective date of title 20, chapter 23, Arizona Revised Statutes, as added by this act, pursuant to section 20-1379, Arizona Revised Statutes, are eligible for coverage under the assigned risk health insurance program that is established by this act.

Sec. 6. Audit report

On or before September 15, 2018, or five years after title 20, chapter 23, Arizona Revised Statutes, as added by this act, becomes effective, the auditor general shall complete an audit of the assigned risk health insurance program established by this act and shall submit a report of its findings and recommendations to the governor, the president of the senate and the speaker of the house of representatives.

Sec. 7. Appropriation; department of insurance; exemption

A. The sum of $_______ is appropriated from the state general fund in fiscal year 2012-2013 to the department of insurance for personnel and administrative costs involved in establishing and administering the assigned risk health insurance program established by title 20, chapter 23, Arizona Revised Statutes, as added by this act.

B. The appropriation made in subsection A of this section is exempt from the provisions of section 35‑190, Arizona Revised Statutes, relating to lapsing of appropriations.

Sec. 8. Conforming legislation

The legislative council staff shall prepare proposed legislation conforming the Arizona Revised Statutes to the provision of this act for consideration in the legislative session immediately following the effective date of this act.

Sec. 9. Conditional enactment; notice

A. This act does not become effective unless the United States Supreme Court declares the federal patient protection and affordable care act (P.L. 111-148), as amended by the federal health care and education reconciliation act of 2010 (P.L. 111-152), in its entirety, unconstitutional.

B. The director of the department of insurance shall notify in writing the director of the Arizona legislative council of this date.