Assigned to FIN AS PASSED BY COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
AMENDED
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.
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.
§§ 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 – Amended
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. Makes technical and conforming changes.
6. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Removes the requirement for the Joint Legislative Budget Committee (JLBC) to conduct a
financial analysis of a legislative proposal's impact on the state employee group health and
accident coverage, if the report to JLAC is not completed by the entity advocating for the
proposal.
2. Removes the prohibition against the legislative proposal being scheduled for a Rules
Committee hearing, if JLBC's analysis is not complete.
Senate Action
FIN 2/17/2025 DPA 5-2-0
Prepared by Senate Research
February 18, 2025
MG/KP/ci