Assigned to FIN FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
FACT SHEET FOR S.B. 1200
mandated health care coverage; JLBC; analysis
Purpose
Requires an organization or individual advocating for a legislative proposal that would
restrict the form or amount of cost sharing applied to a health plan benefit to report to the Joint
Legislative Audit Committee (JLAC) on the social and financial impacts of the cost sharing
restriction. Modifies the statutorily prescribed social and financial factors for the report and
requires an analysis of the legislative proposal if the report is not completed.
Background
An organization or individual advocating for a legislative proposal that would mandate a
health coverage by an insurer, hospital, medical, dental or optometric service corporation, health
care services organization or any other health care service contractor (insurer) must submit a report
to JLAC by September 1 before the start of the legislative session for which the legislation is
proposed. The report must assess the statutorily prescribed social and financial impacts of the
coverage, including the effectiveness of the treatment or service. Statute requires an actuary to
prepare the financial impact analysis and certify that the analysis is consistent with accepted
actuarial standards.
JLAC must assign the report to the appropriate committee of reference (COR) and the COR
must hold a hearing and take public testimony on the report. The COR must study the report and
deliver a report of its recommendation to JLAC, the Speaker of the House of Representatives, the
President of the Senate, the Governor and the Director of the Department of Insurance and
Financial Institutions by December 1 of the year the report is submitted. There is no civil sanction
or criminal penalty to an organization, individual or legislator that does not submit a report (A.R.S.
ยงยง 20-181 and 20-183).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Requires an organization or individual advocating for a legislative proposal that would restrict
the form or amount of cost sharing applied to a health plan benefit issued by an insurer to
submit a report to JLAC by September 1 before the start of the legislative session for which
the legislation is proposed.
2. Requires the social and financial impact portions of the report to address the impacts of the
cost sharing restrictions. FACT SHEET
S.B. 1200
Page 2
3. Adds, to the financial portion of the report:
a) the impact of the coverage or cost sharing restriction on other policyholders that do not use
the treatment or service subject to the mandated coverage or cost sharing restriction; and
b) an analysis of whether the state will be required to defray the costs that a treatment or
service may add to the federal marketplace subsidies.
4. Requires the report to address the specific language of the cost sharing restriction.
5. Requires the Joint Legislative Budget Committee (JLBC), if the report is not completed, to
analyze how the proposal would financially impact the state employee group health and
accident coverage.
6. Requires the JLBC analysis to consider the implementation costs and the outlined financial
impact factors and be made publicly available.
7. Prohibits the legislative proposal from being scheduled for a Rules Committee hearing in the
chamber of origin if the JLBC analysis is not complete.
8. Requires the Arizona Department of Administration and its vendors that support the state
health plan to comply with JLBC for the purpose of preparing the analysis.
9. Makes technical and conforming changes.
10. Becomes effective on the general effective date.
Prepared by Senate Research
February 12, 2025
MG/KP/ci