ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

Senate: ED DPA/SE 5-0-2-0 | Third Read 27-2-1-0

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

SB 1497: classical learnings; tests; examinations

NOW: school districts; insurance quotes

Sponsor: Senator Werner, LD 4

Committee on Education

Overview

Requires a school district governing board (governing board) that employs at least 300 employees and that establishes a self-insurance program to obtain quotes for coverage and services at least once every four years. Instructs any person who supports a school district's self-insurance program to provide to the school district specified information.

History

If a governing board determines that self-insurance is necessary or is in the school district's best interest, the governing board may provide for a self-insurance program, including risk management consultation. To execute a self-insurance program, a school district may: 1) enter into intergovernmental agreements or contracts to participate in self-insurance programs offered by public agency pools; 2) separately contract with a trustee or board of trustees that provides a common self-insurance program with pooled funds and risks to specified entities; 3) enter into cooperative procurement agreements with other school districts; or 4) separately establish a self-insurance program. A risk management consultant or insurance administrator employed by a governing board must be licensed.

If a governing board, either alone or in combination with another school district or an association of school districts that is funded by member school districts, establishes a self-insurance program, the governing board or association must place all funds into a trust to be used for specified purposes, including payment of uninsured losses, claims, defense costs and the cost of related employee benefits. Funds budgeted for self-insurance programs are subject to school district budgetary requirements (A.R.S. § 15-382).

Provisions

1.   Instructs a governing board to obtain quotes for coverage and services from authorized service providers at least once every four years to determine whether comparable coverage and services are available at a more favorable price if:

a.   the school district has at least 300 employees; and

b.   the governing board establishes a self-insurance program to:

i. purchase disability or health benefit plans insurance;

ii.   pool the retention of risks of losses for health or accident claims; or

iii.  provide health and medical services.

2.   Instructs each trust, insurer, third-party administrator, pharmacy benefit manager or person who supports a school district's self-insurance program to provide the following information to the school district at least 60 days before the end of the current benefit program year and in an electronic, machine-readable format:

a.   monthly enrollment counts by employee-only and dependent tiers for each plan offered to the school district for the immediately preceding two calendar years;

b.   monthly total claims paid, disaggregated by medical and prescription drug claims, for the immediately two preceding calendar years;

c. a detailed report on enrollees whose total claims paid:

i. exceeds $50,000 for any of the immediately preceding four calendar years; or

ii.   is projected to exceed $50,000 in the current year;

d.   detailed prescription drug data for the immediately preceding 12-month period for all enrollees;

e. complete documentation for each benefit plan currently available to the school district's employees; and

f. a report of comprehensive eligibility census data for all employees and dependents who participate in the school district's self-insurance program that is updated not more than 60 days before being submitted.

3.   Specifies the detailed report on enrollees whose total claims paid exceed $50,000 and the report of comprehensive eligibility census data must:

a.   include only de-identified data;

b.   comply with the Health Insurance Portability and Accountability Act of 1996; and

c. include additional prescribed information relating to enrollees and claims.

4.   Details line-level details that must be included in the detailed prescription drug data.

5.   Prescribes the information for each plan that must be included in the complete documentation for each benefit plan currently available to the school district's employees.

6.   Prohibits a governing board from renewing coverage or services from any person that fails to provide timely, accurate and complete information as required.

7.   Excludes, from the prescribed school district self-insurance program quote requirement, a school district participating in a self-insurance program that:

a.   is provided by a nonprofit corporation health care pool that is formed according to statute relating to public agency pooling of life, health, accident and disability coverage;

b.   has two or more network options for school district members; and

c. has an administrator that is a nonprofit corporation as provided in statute.

8.   Defines authorized service providers.

9.   Makes technical and conforming changes.

 

 

 

 

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Initials CH                 SB 1497

3/21/2026        Page 0 Education

 

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