The Arizona Revised Statutes have been updated to include the revised sections from the 57th Legislature, 2nd Regular Session. Please note that the next update of this compilation will not take place until after the conclusion of the 58th Legislature, 1st Regular Session, which convenes in January 2027.
This online version of the Arizona Revised Statutes is primarily maintained for legislative drafting purposes and reflects the version of law that is effective on January 1st of the year following the most recent legislative session. The official version of the Arizona Revised Statutes is published by Thomson Reuters.
38-654. Special employee health insurance trust fund; purpose; investment of monies; use of monies; exemption from lapsing; report
A. The special employee health insurance trust fund is established to administer the state employee health insurance benefit plans. The fund shall consist of legislative appropriations, monies collected from the employer and employees for the health insurance benefit plans and investment earnings on monies collected from employees. The fund shall be administered by the director of the department of administration. Monies in the fund that are determined by the legislature to be for administrative expenses of the department of administration, including monies authorized by subsection C, paragraph 4 of this section, are subject to legislative appropriation.
B. On notice from the department of administration, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. There shall be a separate accounting of monies contributed by the employer, monies collected from state employees and investment earnings on monies collected from employees. Monies collected from state employees for health insurance benefit plans shall be spent before expenditure of monies contributed by the employer.
C. Monies in the fund shall be used by the department of administration for the following purposes for the benefit of officers and employees who participate in a health insurance benefit plan pursuant to this article:
1. To administer a health insurance benefit program for state officers and employees.
2. To pay health insurance premiums, claims costs and related administrative expenses.
3. To apply against future premiums, claims costs and related administrative expenses.
4. To apply the equivalent of not more than $1.50 for each employee for each month to administer applicable federal and state laws relating to health insurance benefit programs and to design, implement and administer improvements to the employee health insurance or benefit program as approved by the health insurance trust fund oversight board established by section 38-655.
D. Subsection C of this section does not require that all monies in the special employee health insurance trust fund be used within any one or more fiscal years. Any person who is no longer a state employee or an employee who is no longer a participant in a health insurance plan under contract with the department of administration shall have no claim on monies in the fund.
E. Monies deposited in or credited to the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.
F. The department shall submit a report to the joint legislative budget committee detailing any changes approved by the health insurance trust fund oversight board to the type of benefits offered under the plan and associated costs at least forty-five days before making the change. The report shall include:
1. An estimate of the cost or saving associated with the change.
2. An explanation of why the change was implemented before the next plan year.