{"data":{"id":"us-az/a.r.s.-38-655","jurisdiction":"us-az","citation":"A.R.S. § 38-655","heading":"Health insurance trust fund oversight board; members; duties; annual report; exemption","body":"A. The health insurance trust fund Oversight board is established consisting of the following members:\n\n1. The assistant director of the department of administration, benefits services division, who serves as chairperson of the board.\n\n2. The director of the department of administration or the director's designee.\n\n3. The director of the department of insurance and financial institutions or the director's designee.\n\n4. One member who is appointed by the president of the senate and one member who is appointed by the speaker of the house of representatives, each of whom:\n\n(a) Shall serve a term of two years or at the pleasure of the appointing authority. A board member who is appointed pursuant to this paragraph is eligible for reappointment.\n\n(b) Has at least three years of experience in the health care industry in this state and who is not a registered lobbyist.\n\nB. A person is not eligible to serve as a member of the board during the term for which the person has been elected or appointed to fill an otherwise elected position.\n\nC. Members of the board are subject to the provisions of chapter 3, article 8 of this title relating to conflicts of interest.\n\nD. The board shall meet at least two times annually. Meetings may be held at the call of the chairperson or a majority of the board members. Three members of the health insurance trust fund oversight board shall constitute a quorum to conduct business. Board meetings may be conducted virtually. Board members are not eligible to receive compensation for board service and are not eligible to receive reimbursement for expenses pursuant to article 2 of this chapter.\n\nE. The board shall:\n\n1. Approve all health insurance benefit programs offered to state officers and employees pursuant to section 38-654.\n\n2. Approve premium rates, copayments, deductibles and coinsurance percentages and maximums for the plan.\n\n3. For plan year 2028 and each subsequent plan year, approve any requests for proposal contract of more than $3,000,000 that are entered into by the department of administration for the uses set forth in section 38-654, subsection C. The board shall meet to review the department of administration's contract within ten days after the request of the department.\n\n4. Consult with the department of administration as required by this article and at the request of the department of administration.\n\n5. Develop and maintain a strategic plan for the state health plan.\n\n6. Design policies that seek to, by plan year 2035 and for each subsequent plan year, achieve:\n\n(a) A premium cost sharing of eighty-five percent to be paid by the employer and fifteen percent to be paid by the employee for medical premiums.\n\n(b) A consistent reserve in the special employee health insurance trust fund established by section 38-654 that is twice the total amount of incurred, but not reported, claims payable from health benefit programs funded by the special employee health insurance trust fund.\n\n(c) Optimal cross subsidization of retirees.\n\nF. On or before July 1, 2027 and each year thereafter, the board shall approve and the department of administration shall submit an annual report to the governor, the president of the senate, the speaker of the house of representatives, the chairpersons of the senate and the house of representatives appropriations committees and the joint legislative budget committee staff. The department of administration shall make the annual report available to officers and employees who have paid premiums under any of the insurance plans from which monies were received for deposit in the special employee health insurance trust fund since the inception of the state health and accident insurance plan or since the department of administration submitted the most recent annual report, whichever is later. The annual report must include:\n\n1. The board's strategic plan for the state health plan.\n\n2. The annual activities of the board.\n\n3. The actuarial assumptions and a description of the methodology used to set premiums and reserve balance targets for the health insurance benefit plan for the current plan year.\n\n4. An analysis of the actuarial soundness of the health insurance benefit plan for the previous plan year.\n\n5. An analysis of the actuarial soundness of the health insurance benefit plan for the current plan year, based on both year-to-date experience and total expected experience.\n\n6. A preliminary estimate of the premiums and reserve balance targets for the next plan year, including the actuarial assumptions and a description of the methodology used.\n\n7. The required and actual performance standards for the prior plan year for the contracted health plans, including indemnity health insurance, hospital and medical service plans, dental plans and health maintenance organizations.\n\nG. Section 41-2955, subsection D does not apply to the board.","path":["Title 38 Public Officers and Employees"],"source_url":"https://www.azleg.gov/ars/38/00655.htm","current_through":"57th Legislature, 2nd Regular Session (effective 2027-01-01); mirror section count 24991","vintage":"2026-09-15","retrieved_at":"2026-09-26T04:29:04Z","sha256":"af99d6019c1a1fbfe557f1800e11b9c1d864c396c8ebcd268c43d8d3e503ad49","source_id":"us-az","stale":false,"prev":"us-az/a.r.s.-38-654","next":"us-az/a.r.s.-38-656"},"notice":"GroundRules: Original legal text. Not legal advice."}