Bill > HB2693

This bill amends Arizona law to redefine what constitutes a "bona fide association" for the purpose of offering health insurance. Previously, there were two paths for an association to qualify, but this bill streamlines the definition. Now, an association qualifies if it has been formed and maintained in good faith for purposes other than just selling insurance, has a constitution and bylaws, insures at least twenty-five members or employees of members, and does not discriminate in membership or coverage based on health status. The bill also clarifies that an association can qualify if it meets the requirements of an employer as defined by the Employee Retirement Income Security Act of 1974 (ERISA), a federal law governing employee benefit plans. Furthermore, it allows for self-funded multiple employer welfare arrangements to operate through bona fide associations or specific statewide chambers of commerce or business leagues that meet certain criteria, including being organized for at least five years for purposes other than providing insurance and being tax-exempt under section 501(c)(6) of the Internal Revenue Code. The bill also updates definitions for "small employer" and "working owner" in the context of health benefits plans offered through these associations.

Business and Industry

https://apps.azleg.gov/BillStatus/BillOverview/84500