BILL #    SB 1347	TITLE: health insurance; fertility preservation; coverage
SPONSOR:    Werner
PREPARED BY:    Chandler Coiner	STATUS:   As Amended by Senate FIN

Description

The bill would require a health plan, beginning in Plan Year (PY) 2027, to cover standard fertility preservation services to a member who is within reproductive age, diagnosed with cancer, and whose medically necessary treatment is likely to directly or indirectly cause infertility.

Estimated Impact

We estimate that the bill would result in a General Fund cost of $4.7 million annually for the state employee health plan beginning in PY 2027. The cost would be halved in FY 2027 due to only covering 6 months of the plan year. We also estimate this bill would have a fiscal impact on local government health plans and health care premium tax collections, but the magnitude of such impacts cannot be determined in advance. The bill does not affect the Arizona Health Care Cost Containment System (AHCCCS).

We have asked the Arizona Department of Administration (ADOA) for its estimate of the bill's fiscal impact, but we have not yet received a response.   

Analysis

Our estimate assumes the following:

1) A fiscal note on a similar bill introduced in the Virginia General Assembly this year assumes the following:

- The average cost of the fertility preservation services is approximately $15,000 per individual. We believe this assumption is reasonable based on other publicly available estimates.

- The state's human resources agency estimates 940 of these procedures would occur annually under the Virginia state employee health plan.  

2) Total enrollment in the Arizona state plan is 67% of enrollment in the Virginia state plan, based on 2023 reports from both states.

3) Based on the above assumptions, we estimate the bill would generate $9.4 million in costs for the Arizona state employee health plan ($15,000 × 940 × 67%). Because the General Fund pays approximately 50% of the employer share of all state employee health care costs, we assume the General Fund would also cover 50%, or $4.7 million, of these costs as well.

4) ADOA may be able to provide more precise information on the number of procedures that would be covered by the state plan under this bill.

5) We are unable to estimate the impact to local government and commercial health plans and associated insurance premium tax impacts, as we lack data on the extent to which fertility preservation services are covered by such plans. 

2/19/26