Assigned to FIN FOR
COMMITTEE
Assigned to FIN FOR
COMMITTEE
ARIZONA STATE SENATE
Fifty-Third Legislature, Second Regular Session
insurance; corporations; directors
Purpose
Eliminates certain representational requirements for directors of hospital service corporations, medical service corporations and hospital and medical service corporations.
Background
Current law defines hospital service corporations, medical service corporations, dental service corporations and hospital, medical, dental and optometric service corporations as corporations organized under Arizona law for the purpose of establishing, maintaining and operating nonprofit hospital, medical, dental or optometric service plans, or a combination of such plans (A.R.S. § 20-822). Statute requires directors of such corporations to include the following representation:
1) for a hospital service corporation or a hospital and medical service corporation, administrators or trustees of hospitals contracted with the corporation;
2) for a medical service corporation or a hospital and medical service corporation, licensed physicians and surgeons contracted with the corporation;
3) for a dental service corporation, licensed dentists contracted with the corporation;
4) for an optometric service corporation, licensed optometrists contracted with the corporation; and
5) members of the general public, excluding hospital representatives and physicians, dentists and optometrists (A.R.S. § 20-829).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Eliminates the requirement that directors of a hospital service corporation or a hospital and medical service corporation include representatives who are administrators or trustees of hospitals contracted with the corporation.
2. Eliminates the requirement that directors of a medical service corporation or a hospital and medical service corporation include representatives who are licensed physicians and surgeons contracted with the corporation.
3. Makes technical and conforming changes.
4. Becomes effective on the general effective date.
Prepared by Senate Research
January 8, 2018
FB/lb