REFERENCE TITLE: insurance; study; reinsurance programs; appropriation
State of Arizona
House of Representatives
First Regular Session
Representatives Butler: Jermaine, Lieberman, Pawlik, Powers Hannley, Schwiebert, Senator Alston
Requiring the department of insurance and financial institutions to conduct a study regarding reinsurance program options; appropriating monies.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Department of insurance and financial institutions; contract; reinsurance study; report; delayed repeal
A. The department of insurance and financial institutions shall contract with a qualified health care consultant or actuary to conduct a study regarding establishing a reinsurance program in this state for individual and small group markets using a state innovation waiver authorized by the patient protection and affordable care act (P.L. 111‑148; 124 Stat. 119; 42 United States Code section 18052).
B. The qualified health care consultant or actuary shall assess reinsurance program options for this state using existing insurer data, as appropriate, and compare programs that have been implemented in other states. The qualified health care consultant or actuary shall consult with insurers that offer health plans on the health insurance exchange.
C. On or before July 1, 2022, the qualified health care consultant or actuary shall complete a report that includes the following:
1. An assessment of reinsurance program options that includes:
(a) The groups of insureds that each program option will cover.
(b) Whether the reinsurance option provides an opportunity to lower premium costs for consumers.
(c) The estimated impact on premiums.
2. The estimated cost to this state of implementing a reinsurance program and the potential revenue from a state innovation waiver.
3. The estimated impact on existing insurance providers.
4. Potential sources of funding for a state reinsurance program, including the state general fund, other state funds or other opportunities to generate revenue.
D. On or before August 1, 2022, the department of insurance and financial institutions shall submit the completed report to the governor, the speaker of the house of representatives and the president of the senate and shall provide a copy of this report to the secretary of state.
E. This section is repealed from and after December 31, 2022.
Sec. 2. Appropriation; department of insurance and financial institutions
The sum of $__________ is appropriated from the state general fund in fiscal year 2021‑2022 to the department of insurance and financial institutions to contract with a qualified health care consultant or actuary to conduct a study of reinsurance program options for this state.