PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2376
(Reference to printed bill)
Strike everything after the enacting clause and insert:
"Section 1. Title 20, chapter 13, Arizona Revised Statutes, is amended by adding article 3, to read:
ARTICLE 3. ASSOCIATION HEALTH PLANS
20-2351. Definitions
In this article, unless the context otherwise requires:
1. "Association health plan" means, for a health benefits plan issued by an accountable health plan, a group or association of employers that meets the requirements of section 20‑2352.
2. "Self‑insured association health plan" means an association health plan that is not fully insured.
3. "small employer" has the same meaning prescribed in section 20‑2301 and may include a sole proprietor or working owner.
4. "Working Owner" means an individual whom a responsible plan fiduciary reasonably determines is an individual who meets all of the following requirements:
(a) Has an ownership right of any nature in a trade or business, whether incorporated or unincorporated, including a partner and another self‑employed individual.
(b) Is earning wages or self‑employment income from a trade or business for providing personal services to the trade or business.
(c) either:
(i) Works on average at least twenty hours per week or at least eighty hours per month providing personal services to the working owner's trade or business.
(ii) Has wages or self‑employment income from a trade or business that at least equals the working owner's cost of coverage for participation by the working owner and any covered beneficiaries in the group health plan sponsored by the group or association in which the individual is participating.
20-2352. Association health plans; self‑insured association health plans; definition
A. An association health plan that forms for the purpose of offering a health plan to the employees, including working owners, of its employer members must meet the primary purpose, commonality and nondiscrimination standards and requirements of 29 Code of Federal Regulations part 2510.
B. In determining group size, the employees, including working owners, of participating employers in the association health plan shall be counted in the aggregate.
C. A self‑insured association health plan that operates in this state:
1. At all times shall be in compliance with federal law and regulations.
2. Shall be governed and operated in accordance with sound actuarial principles.
3. Is subject to chapter 2, article 6 of this title.
4. Is otherwise not subject to the requirements of this title.
D. For the purposes of this section, "employer" includes a small employer.
20-2353. Notification
An insurer that issues a health plan to an association health plan shall notify the department at the time the insurer submits policy form filings.
Sec. 2. Department of insurance; association health plans; summary
On or before January 1, 2020, the department of insurance shall post information on the department's public website that summarizes the applicable state law and any other pertinent information related to association health plans."
Amend title to conform