HB2704 - 472R - House Bill Summary

House of Representatives

HB 2704

health insurance; military reservists.

Sponsors: Representatives McClure, Chase, Anderson, Downing, et al

DPA	Committee on Financial Institutions and Insurance
W/D	Committee on Counties, Municipalities, and Military Affairs
X	Caucus and COW
	As Engrossed and As Passed the House

HB 2704 requires that an Armed Forces reservist who was called to active duty and who had coverage under a policy provided by the person’s employer be entitled to reinstate that coverage on release from active duty.

History

According to Arizona Revised Statute (A.R.S.) §§20-1057 and 20-1377, any person who is a United States Armed Forces reservist, who is ordered to active military duty on or after August 22, 1990 and who was enrolled in a health care plan or had coverage under an individual disability insurance policy must have the right to reinstate such coverage upon release from active military duty subject to the following conditions:

1. The reservist must make written application to the health plan within 90 days of discharge from active military duty or within one year of hospitalization continuing after discharge. Coverage must be effective upon receipt of the application by the health plan or insurer.

2. The health plan or insurer may exclude from such coverage any health or physical condition arising during and occurring as a direct result of active military duty.

In accordance with A.R.S. §20-1408, any person who is a United States Armed Forces reservist, who is ordered to active military duty on or after August 22, 1990 and who had coverage under a group disability insurance policy provided by the person's employer at such time must have the right to reinstate such coverage upon release from active military duty subject to the following conditions:

1. Following reemployment by the reservist's former employer, the reservist must make written application to the insurer within 90 days of discharge from active military duty or within one year of hospitalization continuing after discharge. Coverage must be effective upon receipt of application by the insurer.

2. The coverage reinstated must be the same coverage provided by the employer to other employees and their dependents in the employer group health insurance plan at the time of application.

3. The insurer may exclude from such coverage any health or physical condition arising during and occurring as a direct result of active military duty.

Provisions

· Defines reservist as a member of a reserve component of the Armed Forces of the United States, including the National Guard, who is ordered to active duty by the President of the United States.

· Establishes that any United States Armed Forces reservist, who is ordered to active military duty and who had coverage under a disability insurance policy, health care plan or individual disability insurance policy provided by the person’s employer at that time is entitled to reinstate that coverage on release from active duty.

· Requires that the Armed Forces reservist must submit a written application within 90 days of discharge from active military duty or within one year of hospitalization continuing after discharge from active duty.

· Stipulates that coverage will be retroactive to the date of the reservist’s discharge from active duty.

· Establishes coverage under reinstatement for each dependent of a person who is eligible providing that the dependent was insured under a policy at the time the eligible person entered active duty as well as any person who is born during the period of active military duty.

· Stipulates that an insurer reinstating coverage for a reservist must not impose or restart any exclusion, limitation or waiting period on coverage of a health or physical condition of a reservist or a reservist’s dependent in connection with reinstatement of health care coverage if all of the following apply:

1. The health or physical condition arose before or during the reservist’s period of active duty.

2. The condition did not occur as a direct result of active military duty.

3. The exclusion, limitation or waiting period would not have been imposed had the coverage not been interrupted by the reservist’s call to active duty. If a waiting period was imposed but not completed before the reservist’s call to active duty, the insurer may impose the balance of the waiting period on reinstatement of coverage. The sum of the waiting periods imposed before and subsequent to the period of active duty must not exceed the length of the waiting period originally imposed.

· Prohibits an insurer who is reinstating coverage for a reservist during the same benefit year the reservist entered active duty from imposing or increasing any deductible, out-of-pocket or coinsurance requirements that would not have been imposed had the coverage not been interrupted by the reservist’s call to active duty.

· Provides that if a deductible, out-of-pocket or coinsurance requirement was imposed but not satisfied before the reservist’s call to active duty, the insurer may impose the balance of the requirement for the benefit year on reinstatement of coverage. The insurer will credit the reservist for any amount the reservist paid toward satisfaction or the requirements.

· Stipulates that the sum of the deductible, out-of-pocket or coinsurance requirements imposed before and subsequent to the period of active duty will not exceed the requirement originally imposed for that benefit year.

· Requires the insurer to provide the same benefits when reinstating coverage for a reservist or a reservist’s dependent that the insurer would have provided if coverage had not been interrupted by the reservist’s call to active duty.

· Makes technical and conforming changes.

Amendments

Financial Institutions and Finance:

· Stipulates that a reservist returning from an active duty assignment be reinstated to their previous health insurance coverage, be it through a private contract or through the reservist’s employer provided that the reservist returns to previous employment.

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Forty-seventh Legislature