ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

Second Regular Session

 

HB 2507: actuarial analysis; school district employees

Sponsor: Representative Gress, LD 4

Committee on Education

Overview

Instructs the Arizona Department of Administration (ADOA) to conduct an actuarial analysis of the impact of adding school district employees to the Special Employee Health Insurance Trust Fund (HITF).

History

HITF is administered by the ADOA director to provide state employee health insurance benefit plans and consists of legislative appropriations, monies collected from the employer and employees and investment earnings. Expenses for the administration of HITF are subject to legislative appropriation. ADOA must use HITF monies to the benefit of participating officers and employees by: 1) administering a health insurance benefit program; 2) paying and applying against health insurance premiums, claim costs and related administrative expenses; and 3) applying the equivalent of up to $1.50 for each employee per month to administer applicable federal and state laws relating to health insurance benefit programs and to design and implement improvements to the employee health insurance benefit program.

ADOA is required to submit an annual report on the financial status of HITF to specified individuals and legislative committees. Additionally, ADOA must submit a report to the Joint Legislative Budget Committee at least 45 days before changing the types of benefits offered under the plan and any associated costs (A.R.S. § 38-654).

Provisions

1.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteDirects ADOA to conduct an actuarial analysis of the impact that adding school district employees to HITF will have on the state General Fund and how other entities already participating in HITF may be impacted.

2.   Requires the analysis to focus on whether increasing HITF membership will increase or decrease the likelihood that it will be actuarially sound in the future.

3.   Outlines the types of school districts that must be included in the analysis.

4.   Instructs any joint purchasing entity, nonprofit organization or trust in which a school district participates to provide ADOA with any requested information.

5.   Permits ADOA to use up to $500,000 of HITF monies for the study.

6.   Directs ADOA to submit the actuarial analysis report to specified individuals by July 1, 2025.

7.    

8.    

9.   ---------- DOCUMENT FOOTER ---------

10.                    HB 2507

11.  Initials CH/RP    Page 0 Education

12.   

13.  ---------- DOCUMENT FOOTER ---------