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REFERENCE TITLE: state health insurance exchange; board |
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State of Arizona Senate Fifty-sixth Legislature Second Regular Session 2024
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SB 1069 |
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Introduced by Senator Shope
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An Act
repealing section 1-271, Arizona Revised Statutes; amending title 20, Arizona Revised Statutes, by adding chapter 32; amending title 41, chapter 27, article 2, Arizona Revised Statutes, by adding section 41-3034.01; relating to health care insurance.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Repeal
Section 1-271, Arizona Revised Statutes, is repealed.
Sec. 2. Title 20, Arizona Revised Statutes, is amended by adding chapter 32, to read:
CHAPTER 32
HEALTH INSURANCE EXCHANGE
ARTICLE 1. GENERAL PROVISIONS
20-3701. Definitions
In this article, unless the context otherwise requires:
1. "Affordable care act" means the patient protection and affordable care act (P.L. 111-148).
2. "Board" means the board of directors of the exchange.
3. "Exchange" means the state health insurance exchange.
4. "Executive director" means the executive director of the exchange.
5. "Qualified health plan" has the same meaning prescribed in section 1301 of the affordable care act.
6. "Qualified individual" means a person, including a minor, who:
(a) Seeks to enroll in a qualified health plan that is offered to persons through the exchange.
(b) Resides in this state.
(c) At the time of enrollment is not incarcerated, unless the person is incarcerated pending the disposition of charges.
(d) Is, as applicable, a citizen of the United States or an alien who is lawfully present in the United States for the entire enrollment period.
(e) Meets all qualifications as prescribed in the affordable care act.
20-3702. State health insurance exchange; powers; duties; requirements
A. The state health insurance exchange is established to:
1. Facilitate the purchase and sale of qualified health plans in the individual market in this state.
2. Reduce the number of uninsured individuals in this state.
3. Provide a transparent marketplace for health insurance and consumer education on matters relating to health insurance.
4. Assist residents with access to programs, premium assistance, tax credits and cost sharing reductions.
B. The exchange shall:
1. Establish and administer a health insurance exchange.
2. Facilitate the purchase and sale of qualified health plans.
3. Establish a program to assist qualified small employers to facilitate the enrollment of their employees in qualified health plans offered in the small group market.
4. Make qualified health plans available to qualified individuals.
5. Perform all necessary duties to implement the affordable care act.
C. The exchange may:
1. Enter into contracts with this state, any political subdivision of this state or a person to carry out the powers and duties of the exchange or the Board.
2. Apply for or accept any gift, donation, bequest, grant or other source of monies to carry out the powers and duties of the exchange or the Board.
3. Collaborate and coordinate with the Arizona health care cost containment system to facilitate transitions between health insurance plans.
D. The Board and the exchange shall comply with the procurement process prescribed in Title 41, Chapter 23.
E. the Board and the exchange are subject to the open meeting laws prescribed in title 38, chapter 3, article 3.1.
20-3703. State health insurance exchange board; membership; terms; compensation
a. The state health insurance exchange board is established and consists of the following members:
1. The director of the department of health services or the director's designee as a nonvoting member.
2. The director of the department of insurance and financial institutions or director's designee as a nonvoting member.
3. the director of the Arizona health care cost containment system or the director's designee as a nonvoting member.
4. three members who are appointed by the governor.
5. two members who are appointed by the president of the senate.
6. two members who are appointed by the speaker of the house of representatives.
B. Each voting member of the Board must possess one or more of the following:
1. expertise in selling or marketing individual or small employer health insurance.
2. Expertise in health care administration, health care financing, health care information technology or health insurance.
3. expertise in administering health care delivery systems.
4. Experience as a consumer who would benefit from the services provided by the exchange.
5. Experience as a health care consumer advocate, including experience in consumer outreach and consumer education.
C. When making appointments to the board, the governor, the president of the senate and the speaker of the house of representatives shall do both of the following:
1. Consider the collective expertise and experience of the voting members of the Board and make appointments that collectively represent:
(a) The expertise and experience as described in subsection B of this section.
(b) The range and diversity of members' skills, knowledge and experience and geographic and stakeholder perspectives.
2. Ensure that not more than two voting members of the board represent any particular area of expertise or experience.
D. Voting members of the Board:
1. May not be legislators or hold any elective office in this state.
2. Serve three year terms.
3. May be reappointed to the Board.
4. May be removed by The appointing authority if the voting member:
(a) neglects the voting member's duty.
(b) Commits malfeasance.
(c) Commits misfeasance or nonfeasance.
E. A vacancy shall be filled in the same manner as the original appointment.
F. on the expiration of a Board member's term, the voting member may continue to serve until that member is reappointed to another term or a new board member is appointed.
G. the board shall annually elect a chairperson and vice chairperson from among its members. The chairperson and vice chairperson may serve more than one term.
H. Board members are not eligible to receive compensation but members who are appointed pursuant to subsection a, paragraphs 4, 5 and 6 are eligible for reimbursement of expenses pursuant to title 38, chapter 4, article 2.
I. The Board shall meet at least four times each calendar year and at other times at the discretion of the chairperson or a majority of the voting members. A majority of the voting members constitutes a quorum.
20-3704. Subcommittees; advisory committees; requirements; reimbursement
A. The Board may appoint subcommittees and advisory committees that are comprised of members of the board, former members of the Board and the public who have experience or knowledge in Matters relating to health care or matters that are within the scope of the powers, duties and functions of the Board.
B. The members of a subcommittee or advisory committee must be representative of the various geographic areas and ethnic groups of this state to the extent PRACTICABLE.
C. Subcommittee and advisory committee members may not receive reimbursement of expenses pursuant to title 38, chapter 4, article 2.
20-3705. Board; powers and duties; reports; audits
A. The Board shall:
1. Adopt rules that set forth the Board's procedures and operations.
2. On or before June 30 and December 31 of each year, submit a written fiscal and operational report to the governor, the president of the senate and the speaker of the house of representatives and include any recommendations CONCERNING the exchange.
3. On or before July 1 of each year, post a report on a publicly accessible website that summarizes the activities of the Board and explains how the exchange has impacted health care in this state for the previous fiscal year.
4. Provide for an annual audit of the Board's functions and operations.
5. Submit in a timely manner all reports that are required by federal law to the appropriate federal agencies.
B. The Board may:
1. Adopt rules to carry out the duties and powers of the exchange.
2. Prepare special reports concerning the exchange that are sent to the Governor, the president of the senate and the speaker of the house of representatives and that are publicly posted on its website.
3. Contract for services that the exchange may require to execute the duties and powers of the exchange, including legal, professional, technical and personnel services.
C. The board is subject to legislative and executive branch audits, as appropriate.
20-3706. Executive director; appointment
The Board shall appoint an executive director of the exchange. The executive director:
1. Is an employee of this state.
2. Serves at the pleasure of the Board.
3. Is responsible to the Board.
4. Is responsible for the administrative matters of the board.
5. Must have experience and education in administering health care or health insurance.
6. is subject to the limits of available funding.
7. May hire or remove employees.
20-3707. Coordination with AHCCCS; children's health insurance program
The board and the director of the department of health services or the director's designee shall ensure that the exchange coordinates with the health care cost containment system as prescribed in title 36, chapter 29, the children's health insurance program as prescribed in title 36, CHAPTER 29, article 4 and any other state or local public health program.
Sec. 3. Title 41, chapter 27, article 2, Arizona Revised Statutes, is amended by adding section 41-3034.01, to read:
41-3034.01. State health insurance exchange board; termination July 1, 2034
A. the state health insurance exchange board terminates on July 1, 2034.
B. title 20, chapter 32, article 1 and this section are repealed on January 1, 2035.
Sec. 4. Initial terms of state health insurance exchange board
A. Notwithstanding section 20-3703, Arizona Revised Statutes, as added by this act, the initial terms of members of the state health insurance exchange board are:
1. Two terms ending January 31, 2025.
2. Two terms ending January 31, 2026.
3. Three terms ending January 31, 2027.
B. The appropriate official shall make all subsequent appointments as prescribed by statute.
Sec. 5. Purpose
Pursuant to section 41-2955, subsection E, Arizona Revised Statutes, the legislature establishes the state health insurance exchange board to facilitate the purchase and sale of qualified health plans in the individual health insurance market in this state.