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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
insurance; small employers; continuation coverage
Purpose
Modifies the definition of small employer as it relates to small group health plan continuation coverage.
Background
The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) requires most private sector group health plans that are maintained by certain employers to offer continuation coverage to covered employees, former employees, spouses, former spouses and dependent children who lose coverage due to certain qualifying events. Group health plans that are subject to continuation coverage requirements under COBRA law are those that are maintained by employers with the equivalent of 20 or more employees on more than 50 percent of the employers’ typical business days in the previous calendar year. Group health plans that are sponsored by small employers with fewer than 20 employees are not subject to the same continuation coverage requirements.
Laws 2018, Chapter 164 allows certain enrollees and their dependents to obtain continuation coverage under a group health plan sponsored by a small employer. Current statute defines small employer as an employer who employs an average of at least 1 but not more than 20 eligible employees during the preceding calendar year.
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Redefines small employer as an employer that employs an average of at least 1 but fewer than 20 eligible employees during the preceding calendar year.
2. Becomes effective on the general effective date.
Prepared by Senate Research
January 18, 2019
CRS/gs