Chapter 0009 - 491R - H Ver of HB2324
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House Engrossed
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State of Arizona
House of Representatives
Forty-ninth Legislature
First Regular Session
2009
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CHAPTER 9
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HOUSE BILL 2324
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AN ACT
AMENDING TITLE 20, CHAPTER 4, ARTICLE 3, ARIZONA REVISED STATUTES, BY ADDING
SECTION 20-846; AMENDING TITLE 20, CHAPTER 4, ARTICLE 9, ARIZONA REVISED STATUTES, BY
ADDING SECTION 20-1079; AMENDING TITLE 20, CHAPTER 6, ARTICLE 4, ARIZONA REVISED
STATUTES, BY ADDING SECTION 20-1383; RELATING TO INDIVIDUAL HEALTH INSURANCE COVERAGE.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 20, chapter 4, article 3, Arizona Revised Statutes, is amended by
adding section 20-846, to read:
20-846. Individual health insurance policies;
mandatory coverage exemption; definition
A. A HOSPITAL SERVICE CORPORATION, MEDICAL SERVICE CORPORATION OR HOSPITAL AND
MEDICAL SERVICE CORPORATION MAY ISSUE A SUBSCRIPTION CONTRACT TO AN UNINSURED INDIVIDUAL
THAT IS NOT SUBJECT TO THE REQUIREMENTS OF ANY OF THE FOLLOWING:
1. SECTION 20-461, SUBSECTION A, PARAGRAPH 17 AND SUBSECTION B.
2. SECTION 20-826, SUBSECTIONS F, J, K, U, V, W AND X.
3. SECTION 20-841, SUBSECTIONS A AND C.
4. SECTIONS 20-841.01, 20-841.02, 20-841.03, 20-841.04, 20-841.06, 20-841.07
AND 20-841.08.
5. SECTION 20-841.05, SUBSECTIONS B AND E.
B. FOR THE PURPOSES OF THIS SECTION:
1. "HEALTH INSURANCE COVERAGE":
(a) MEANS A HEALTH CARE PLAN OR ARRANGEMENT THAT PAYS FOR OR FURNISHES
MEDICAL OR HEALTH SERVICES AND THAT IS ISSUED BY A DISABILITY INSURER, GROUP DISABILITY
INSURER, BLANKET DISABILITY INSURER, HEALTH CARE SERVICES ORGANIZATION, HOSPITAL SERVICE
CORPORATION, MEDICAL SERVICE CORPORATION OR MEDICAL, HOSPITAL, DENTAL AND OPTOMETRIC
SERVICE CORPORATION OR A SIMILAR ENTITY IN ANOTHER STATE.
(b) INCLUDES A SELF-INSURED OR SELF-FUNDED EMPLOYEE BENEFIT PLAN OR
MULTIEMPLOYER EMPLOYEE BENEFIT PLAN CREATED PURSUANT TO 29 UNITED STATES CODE SECTION
186(c) IF THE REGULATION OF THAT PLAN IS PREEMPTED BY SECTION 514(b) OF THE
EMPLOYEE RETIREMENT INSURANCE SECURITY ACT OF 1974 (29 UNITED STATES CODE SECTION
1144(b)).
(c) DOES NOT INCLUDE LIMITED BENEFIT COVERAGE AS DEFINED IN SECTION
20-1137.
2. "UNINSURED INDIVIDUAL" MEANS A PERSON WHO HAS EITHER:
(a) NOT HAD HEALTH INSURANCE COVERAGE FOR THE NINETY DAYS IMMEDIATELY BEFORE
THE EFFECTIVE DATE OF COVERAGE ISSUED PURSUANT TO THIS SECTION, EXCEPT THAT THIS
REQUIREMENT DOES NOT APPLY AT THE RENEWAL OF COVERAGE PURSUANT TO THIS SECTION.
(b) LOST HEALTH INSURANCE COVERAGE IN ONE OF THE FOLLOWING WAYS WITHIN NINETY
DAYS IMMEDIATELY BEFORE THE EFFECTIVE DATE OF COVERAGE ISSUED PURSUANT TO THIS SECTION:
(i) THE INDIVIDUAL LEFT A JOB THAT PROVIDED HEALTH INSURANCE COVERAGE.
(ii) THE INDIVIDUAL'S EMPLOYER DISCONTINUED OFFERING HEALTH INSURANCE
COVERAGE.
(iii) THE INDIVIDUAL EXHAUSTED CONTINUATION COVERAGE UNDER A COBRA
CONTINUATION PROVISION AS DEFINED IN SECTION 20-2301.
(iv) THE INDIVIDUAL'S FAMILY HEALTH INSURANCE COVERAGE WAS DISCONTINUED
DUE TO THE DEATH OF A SPOUSE OR A DIVORCE.
(v) THE INDIVIDUAL ATTAINED THE MAXIMUM AGE FOR DEPENDENT COVERAGE
UNDER A HEALTH INSURANCE POLICY.
(vi) THE INDIVIDUAL'S PARTICIPATION IN A PUBLIC HEALTH CARE PROGRAM WAS
DISCONTINUED.
Sec. 2. Title 20, chapter 4, article 9, Arizona Revised Statutes, is amended by
adding section 20-1079, to read:
20-1079. Individual health insurance policies;
mandatory coverage exemption; definition
A. A HEALTH CARE SERVICES ORGANIZATION MAY ISSUE AN EVIDENCE OF COVERAGE TO AN
UNINSURED INDIVIDUAL THAT IS NOT SUBJECT TO THE REQUIREMENTS OF ANY OF THE FOLLOWING:
1. SECTION 20-1057, SUBSECTIONS C, K, L, Y, Z, AA AND BB.
2. SECTIONS 20-1057.01, 20-1057.03, 20-1057.04 AND 20-1057.05.
3. SECTION 20-1057.02, SUBSECTIONS B AND E.
B. FOR THE PURPOSES OF THIS SECTION:
1. "HEALTH INSURANCE COVERAGE":
(a) MEANS A HEALTH CARE PLAN OR ARRANGEMENT THAT PAYS FOR OR FURNISHES
MEDICAL OR HEALTH SERVICES AND THAT IS ISSUED BY A DISABILITY INSURER, GROUP DISABILITY
INSURER, BLANKET DISABILITY INSURER, HEALTH CARE SERVICES ORGANIZATION, HOSPITAL SERVICE
CORPORATION, MEDICAL SERVICE CORPORATION OR MEDICAL, HOSPITAL, DENTAL AND OPTOMETRIC
SERVICE CORPORATION OR A SIMILAR ENTITY IN ANOTHER STATE.
(b) INCLUDES A SELF-INSURED OR SELF-FUNDED EMPLOYEE BENEFIT PLAN OR
MULTIEMPLOYER EMPLOYEE BENEFIT PLAN CREATED PURSUANT TO 29 UNITED STATES CODE SECTION
186(c) IF THE REGULATION OF THAT PLAN IS PREEMPTED BY SECTION 514(b) OF THE
EMPLOYEE RETIREMENT INSURANCE SECURITY ACT OF 1974 (29 UNITED STATES CODE SECTION
1144(b)).
(c) DOES NOT INCLUDE LIMITED BENEFIT COVERAGE AS DEFINED IN SECTION
20-1137.
2. "UNINSURED INDIVIDUAL" MEANS A PERSON WHO HAS EITHER:
(a) NOT HAD HEALTH INSURANCE COVERAGE FOR THE NINETY DAYS IMMEDIATELY BEFORE
THE EFFECTIVE DATE OF COVERAGE ISSUED PURSUANT TO THIS SECTION, EXCEPT THAT THIS
REQUIREMENT DOES NOT APPLY AT THE RENEWAL OF COVERAGE PURSUANT TO THIS SECTION.
(b) LOST HEALTH INSURANCE COVERAGE IN ONE OF THE FOLLOWING WAYS WITHIN NINETY
DAYS IMMEDIATELY BEFORE THE EFFECTIVE DATE OF COVERAGE ISSUED PURSUANT TO THIS SECTION:
(i) THE INDIVIDUAL LEFT A JOB THAT PROVIDED HEALTH INSURANCE COVERAGE.
(ii) THE INDIVIDUAL'S EMPLOYER DISCONTINUED OFFERING HEALTH INSURANCE
COVERAGE.
(iii) THE INDIVIDUAL EXHAUSTED CONTINUATION COVERAGE UNDER A COBRA
CONTINUATION PROVISION AS DEFINED IN SECTION 20-2301.
(iv) THE INDIVIDUAL'S FAMILY HEALTH INSURANCE COVERAGE WAS DISCONTINUED
DUE TO THE DEATH OF A SPOUSE OR A DIVORCE.
(v) THE INDIVIDUAL ATTAINED THE MAXIMUM AGE FOR DEPENDENT COVERAGE
UNDER A HEALTH INSURANCE POLICY.
(vi) THE INDIVIDUAL'S PARTICIPATION IN A PUBLIC HEALTH CARE PROGRAM WAS
DISCONTINUED.
Sec. 3. Title 20, chapter 6, article 4, Arizona Revised Statutes, is amended by
adding section 20-1383, to read:
20-1383. Individual health insurance policies;
mandatory coverage exemption; definition
A. A DISABILITY INSURER MAY ISSUE A POLICY TO AN UNINSURED INDIVIDUAL THAT IS
NOT SUBJECT TO THE REQUIREMENTS OF ANY OF THE FOLLOWING:
1. SECTION 20-461, SUBSECTION A, PARAGRAPH 17 AND SUBSECTION B.
2. SECTION 20-1342, SUBSECTION A, PARAGRAPHS 11 AND 12.
3. SECTION 20-1342, SUBSECTIONS H, I, J AND K.
4. SECTION 20-1376, SUBSECTIONS A AND C.
5. SECTIONS 20-1342.01, 20-1376.01, 20-1376.02, 20-1376.03 AND 20-1376.04.
B. FOR THE PURPOSES OF THIS SECTION:
1. "HEALTH INSURANCE COVERAGE":
(a) MEANS A HEALTH CARE PLAN OR ARRANGEMENT THAT PAYS FOR OR FURNISHES
MEDICAL OR HEALTH SERVICES AND THAT IS ISSUED BY A DISABILITY INSURER, GROUP DISABILITY
INSURER, BLANKET DISABILITY INSURER, HEALTH CARE SERVICES ORGANIZATION, HOSPITAL SERVICE
CORPORATION, MEDICAL SERVICE CORPORATION OR MEDICAL, HOSPITAL, DENTAL AND OPTOMETRIC
SERVICE CORPORATION OR A SIMILAR ENTITY IN ANOTHER STATE.
(b) INCLUDES A SELF-INSURED OR SELF-FUNDED EMPLOYEE BENEFIT PLAN OR
MULTIEMPLOYER EMPLOYEE BENEFIT PLAN CREATED PURSUANT TO 29 UNITED STATES CODE SECTION
186(c) IF THE REGULATION OF THAT PLAN IS PREEMPTED BY SECTION 514(b) OF THE
EMPLOYEE RETIREMENT INSURANCE SECURITY ACT OF 1974 (29 UNITED STATES CODE SECTION
1144(b)).
(c) DOES NOT INCLUDE LIMITED BENEFIT COVERAGE AS DEFINED IN SECTION
20-1137.
2. "UNINSURED INDIVIDUAL" MEANS A PERSON WHO HAS EITHER:
(a) NOT HAD HEALTH INSURANCE COVERAGE FOR THE NINETY DAYS IMMEDIATELY BEFORE
THE EFFECTIVE DATE OF COVERAGE ISSUED PURSUANT TO THIS SECTION, EXCEPT THAT THIS
REQUIREMENT DOES NOT APPLY AT THE RENEWAL OF COVERAGE PURSUANT TO THIS SECTION.
(b) LOST HEALTH INSURANCE COVERAGE IN ONE OF THE FOLLOWING WAYS WITHIN NINETY
DAYS IMMEDIATELY BEFORE THE EFFECTIVE DATE OF COVERAGE ISSUED PURSUANT TO THIS SECTION:
(i) THE INDIVIDUAL LEFT A JOB THAT PROVIDED HEALTH INSURANCE COVERAGE.
(ii) THE INDIVIDUAL'S EMPLOYER DISCONTINUED OFFERING HEALTH INSURANCE
COVERAGE.
(iii) THE INDIVIDUAL EXHAUSTED CONTINUATION COVERAGE UNDER A COBRA
CONTINUATION PROVISION AS DEFINED IN SECTION 20-2301.
(iv) THE INDIVIDUAL'S FAMILY HEALTH INSURANCE COVERAGE WAS DISCONTINUED
DUE TO THE DEATH OF A SPOUSE OR A DIVORCE.
(v) THE INDIVIDUAL ATTAINED THE MAXIMUM AGE FOR DEPENDENT COVERAGE
UNDER A HEALTH INSURANCE POLICY.
(vi) THE INDIVIDUAL'S PARTICIPATION IN A PUBLIC HEALTH CARE PROGRAM WAS
DISCONTINUED.
PRESENTED TO THE GOVERNOR ON JUNE 22, 2009. IN ACCORDANCE WITH ARIZONA CONSTITUTION,
ARTICLE 5, SECTION 7, ANY BILL NOT RETURNED WITHIN FIVE DAYS AFTER PRESENTED TO THE
GOVERNOR (SUNDAY EXCEPTED) SUCH BILL SHALL BECOME A LAW IN LIKE MANNER AS IF HE [SIC] HAD
SIGNED IT.
FILED IN THE OFFICE OF THE SECRETARY OF STATE JULY 1, 2009.
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