 |
ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
dental insurers; dental practice; prohibition
Purpose
Prohibits a dental insurer, or a holding company of a dental insurer, from holding ownership in a business organization that offers public professional services regulated by the Arizona Board of Dental Examiners (BODEX).
Background
BODEX is established to promote the safe and professional practice of dentistry. The mission of BODEX is to provide professional, courteous service and information to the dental profession and the general public through the: 1) examination and licensure process; 2) complaint adjudication and enforcement processes; and 3) protection of oral health, safety and welfare of Arizona citizens through a fair and impartial system (A.R.S. Title 32, Chapter 11).
Business entities may not offer dental services unless the entity is registered with BODEX and the services are performed by a licensed professional. Statute exempts the following from BODEX registration requirements for business entities: 1) sole proprietorships or partnerships consisting exclusively of licensed dentists; 2) service corporations, disability insurers, and certain prepaid dental or health care organizations; 3) professional corporations or limited liability companies exclusively owned by licensed dentists and formed under statute regulating professional corporations; 4) facilities regulated by the federal or state government; and 5) legal representatives, such as executors or administrators, acting for a deceased or mentally incompetent dentist for a period of not more than one year after the death or incapacitation (A.R.S. § 32-1213).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits a dental insurer, or a holding company of a dental insurer, from holding an ownership interest in a business organization that offers, to the public, professional services regulated by BODEX.
2. Defines dental insurer as a dental service corporation, prepaid dental plan organization, health care services organization, disability insurer or group or blanket disability insurer that offers, issues or renews a contract, evidence of coverage or policy covering dental services.
3. Defines holding company as a corporation, firm, partnership, limited partnership, limited liability company, trust or other form of business organization that is not an individual and that directly or indirectly holds either:
a) an ownership interest of 10 percent or more, as determined by the holding company’s board, in a dental insurer; or
b) voting rights with the power to vote 10 percent or more of the outstanding voting rights of a dental insurer.
4. Makes conforming changes.
5. Become effective on the general effective date.
House Action
COM 2/3/26 DP 8-0-3-0
3rd Read 3/11/26 42-9-8-0-1
Prepared by Senate Research
March 20, 2026
JT/HD/ci